Contrary to predictions of a post-COVID slowdown, investments in Southeast Asia’s online gaming sector scaled fresh peaks in 2022, show data from DealStreetAsia DATA VANTAGE’s latest report SE Asia’s Digital Gaming Landscape: 2022.
Between January and end-October 2022, gaming companies in the region raised $502 million in equity funding, which is more than the total proceeds raised in the previous 10 years, according to the report. In the entire 2021, startups in the sector had raised $322 million. The number of deals, too, grew from 72 in 2021 to 104 in the first 10 months of 2022.
Equity funding for venture-backed, games-focused startups in SE Asia
Investor confidence was boosted by the continued popularity of gaming despite the lifting of travel restrictions post-COVID. Most users spent the same amount of time on gaming in 2022, compared with 2021, according to the e-conomy SEA 2022 report by Google, Temasek and Bain.
Strong demand led to the emergence of more companies in the region’s gaming landscape. This was reflected in a surge in seed-stage deals this year to 55 by October-end, compared with 36 in the entire 2021.
GameFi platform Polemos, which essentially operates as a P2E gaming guild, raised the largest seed round this year at $14 million.
Funding by stage in SE Asia’s gaming startups
Powered by blockchain technology
One of the most important reasons for the continued growth of gaming startups is the adoption of blockchain-enabled Play-to-earn (P2E) models, which rose to prominence following the rapid adoption of cryptocurrency in 2021.
Blockchain-based gaming startups accounted for 72% of the deals and 89% of the funds raised between Jan. 1, 2019 and Oct. 31, 2022.
All of the top 10 largest fundraisers in the region’s gaming landscape are blockchain-powered, with the exception of EVOS Esports. Sky Mavis raised the largest single round with a $152 million Series B in 2021, followed by a $150 million Series C earlier this year.
Top funded gaming startups in SE Asia
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