In a bold move for gaming, Play Ventures, a Singapore-based VC firm, has bagged $140 million for its third and biggest fund yet. With its total AUM now hitting $450 million, the company aims to fuel innovation in early-stage gaming startups, offering a lifeline to an industry facing massive layoffs and challenges.
Play Ventures Fund – A Big Win Amid Turbulence
This latest fund comes at a critical moment for gaming. Over the last two and a half years, the industry has faced major challenges, with slower growth taking its toll. Yet, Play Ventures sees this as the perfect time to back bold ideas.
“Software may have eaten the world, but mobile has swallowed our time whole,” said Henric Suuronen, founding partner at Play Ventures. “People now live on their phones… Mobile gaming is one of the most dynamic arenas of our time, presenting massive, untapped potential.” He added that the new fund will be focused on the billion-dollar opportunities fueled by AI and mobile innovation.
From Fundraising to Action
Play Ventures isn’t wasting any time. Since its initial close in June 2023, the fund has already invested in eight startups, targeting experienced founders with successful exits under their belts. The firm plans to spread the $140 million across 20 to 25 companies globally, focusing on early-stage investments ranging from pre-seed to Series A.
The fund’s sweet spot? Free-to-play mobile games, gaming infrastructure, AI-enhanced tools, and new distribution models. But that’s not all—Play Ventures is expanding its reach to “playable apps,” a next-gen category of consumer apps designed with gaming in mind.
What Are “Playable Apps”?
The idea of merging gaming elements with everyday apps is gaining steam. Partner at Play Ventures, Phylicia Koh, explained, “Integrating gaming mechanics into everyday apps is just the first step. There’s a ton of user engagement and value that can be unlocked by taking learnings from the entire f2p (free-to-play) gaming playbook.”
She cited the fund’s investments in firms like Arya, Ahead, and Bible Chat, which leverage this approach to reshape user experiences.
Betting on AI and Visionary Founders
Play Ventures’ latest investments include Beyond, an AI-driven startup founded by Anton Gauffin, the mastermind behind Huuuge Games. Beyond is working on its first product, Decor Society, which combines AI tools with consumer experiences.
Speaking on the broader market trends, Play Ventures cofounder Harri Manninen highlighted the prospects in areas like AI, user-generated content, and emerging markets. “The best founders see periods of uncertainty as a chance to build the next generation of great game companies,” Manninen said. He believes that many of today’s top gaming giants were born in times of market downturn.
A New Frontier: Blockchain and More
Play Ventures also runs the Play Future Fund, a smaller pot aimed at blockchain gaming projects. This sub-fund has already backed big names like Ancient 8, Azra Games, and IndiGG. While the focus of Fund III will be mainly on traditional gaming and mobile innovation, web3 gaming isn’t entirely off the radar.
Recent investments under the Play Future Fund include Darkbright, the studio behind Smolbound—a blockchain-based life sim RPG.
A Lifeline for Talent
Manninen also sees the fund as a chance to rebuild the industry’s workforce. “My hope is that the new gaming companies of tomorrow will grow into big successes that will be able to hire many of the top talent that have unfortunately lost their jobs recently.”
By funding promising startups, Play Ventures is creating a ripple effect—supporting not just game devs, but also the broader ecosystem of creative and technical talent.
A Proven Track Record
Founded in 2018, Play Ventures started small, raising $30 million for its first fund. By 2021, the second fund brought in $135 million. The firm’s rapid growth and strategic investments have made it one of the go-to VCs for early-stage gaming startups.
With offices in Singapore and Helsinki, the team—including Suuronen, Manninen, and partners Kenrick Drijkoningen, Phylicia Koh, and Anton Backman—is laser-focused on identifying the next wave of billion-dollar hits.
Why It Matters
The $140 million raise isn’t just a win for Play Ventures—it’s a sign of resilience in an industry that’s always evolving. With an eye on mobile, AI, and interactive experiences, the firm is betting big on the future of gaming. For players, this means more exciting games and apps to get hyped about. For founders, it’s a rare chance to turn bold ideas into reality, even in a challenging market.
