Gaming

An industry expanding in all directions in Europe

Last updated: 11 Nov 2021

Market 101

Games have quietly been liberating themselves from the basements of spotty teenagers. They’ve made themselves more accessible by embracing streaming rather than downloads, and phones instead of computers. And they’ve doubled down on their real strength: facilitating authentic, spontaneous interactions. When the pandemic hit, everyone from congresswomen to YouTube stars hopped on the gaming bandwagon: mission accomplished.

Now companies are betting that games are here to stay because they complement, if not replace, our social media addiction. Incumbent gaming companies and tech giants have the audience and capital to quickly bring games to market. Nonetheless, many rely on startups for quality content and software. Together, they’re working to make games more accessible than ever before.

Early stage market map

Early stage market map

Key facts

€23.3bn

size of Europe’s gaming market1

44

% of total revenue generated by console games in key European markets (France, Germany, Italy, Spain, UK)2

24

% increase in in-app purchase revenue since the start of the pandemic3

Startups tracked by Sifted

Investors by type

Sifted take

Startups have so far mostly worked on creating games that are compelling enough to escape the real world for a while. The next challenge will be to go into the metaverse, blurring the boundaries between our real and virtual worlds, for example by integrating existing social media apps with games and creating monetisation schemes for them.

Rising stars

Anything World

Game developer tools

Total funding

London, UK
2018

Lets users create 3D worlds based on voice commands. Instead of commissioning the animation of specific models, creators can access the startup’s extensive library of 3D assets with in-built natural behaviors. Having participated in Ubisoft’s Artificial Intelligence Accelerator at Station F and Techstars’ London accelerator programme, the company works with the likes of Ubisoft, Instagram, Facebook and Warner Music.

Round

Seed

Valuation

€3m


Date

2020

Size

€600k

AudioMob

Auxiliary gaming services

Funding & monetisation

Total funding

€1.8m

London, UK
2020

Enables advertisers to place in-game audio adverts that players can listen to without interrupting their game. Cofounders Christian Facey and Wilfrid Obeng previously worked at Google, AudioMob’s biggest investor.

Round

Seed

Valuation

8.3m


Date

2020

Size

1.8m

Darewise Entertainment

Game development studio

Total funding

€3.6m

Paris, France
2017

A games development studio currently working on Life Beyond, an online multiplayer game combining social connection with adventures and exploration. Darewise was cofounded by Benjamin Charbit and Samuel Kahn, both of whom previously worked at Ubisoft.

Round

Seed

Valuation

€15m


Date

2020

Size

€3m

Early stage startups to watch

Anything World

London, United Kingdom
2018
Seed

-

600k

-

AudioMob

London, United Kingdom
2020
Series A

17m

14m

-

BeyondPlay

London, United Kingdom
2021
Seed

2m

2m

-

coherence

Malmö, Sweden
2018
Seed

2.6m

2.3m

11.5m

Colossi Games

Limassol, Cyprus
2020
Seed

2.7m

2.1m

10.8m

Darewise Entertainment

Paris, France
2017
Seed

3.6m

3m

-

Dixper

Madrid, Spain
2018
Seed

700k

500k

-

Doppio

Lisbon, Portugal
2018
Seed

1m

1m

4m

Five Vectors

Berlin, Germany
2019
Seed

1.9m

900k

8m

Genba Digital

Royal Leamington Spa, United Kingdom
2015
Seed

1.6m

600k

-

GoBubble

Chester, United Kingdom
2019
Seed

1.2m

700k

-

Maze Theory

London, United Kingdom
2018
Seed

1.3m

1.3m

-

Neopolis

Lyon, France
2019
Seed

2.5m

2.5m

-

Nware

Madrid, Spain
2017
Seed

350k

100k

-

Omeda Studios

London, United Kingdom
2020
Seed

2m

2m

-

Originalgames

Tallinn, Estonia
2020
Seed

5.5m

5.5m

-

Quicksave Interactive

Helsinki, Finland
2017
Seed

1.7m

1.3m

5m

Savage Game Studios

Helsinki, Finland
2019
Seed

4.4m

4.4m

-

Stakester

London, United Kingdom
2019
Seed

6.9m

3m

-

Sugar

London, United Kingdom
2019
Seed

1.8m

1.8m

-

The Breach Studios

Barcelona, Spain
2018
Seed

3.5m

3.5m

-

U24 Solutions

Hitchin, United Kingdom
2017
Seed

1m

650k

-

VRee

Eindhoven, Netherlands
2016
Seed

650k

350k

3m

XR Games

Leeds, United Kingdom
2017
Seed

6m

1.8m

-

Europe’s success stories

Who early stage startups are up against

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

→ Offers a platform for teachers to create online quizzes and educational games

→ Saw revenues of €38m in 2020, a 247% YoY increase, with a market cap of €1.9bn

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

→ Games developer and publisher for mobile games focused on free-to-play, casual gaming

→ Market cap of €659m

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

→ Games developer and publisher which developed the world’s largest free-toplay massively multiplayer online role-playing games,RuneScape and Old School RuneScape

Sources

Research reports

Global Games Market Report 2021 July 2021 | Newzoo

Intro to the Metaverse 2021 | Newzoo

1 Key Facts - Video Games in Europe 2021 | ISFE

Video gaming in lockdown September 2020 | ISFE

3 Covid-19's impact on the gaming industry 2020 | Unity

Data sources

Sifted.eu Proprietary data

Dealroom.co Data

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