Legal Niches

Investments in VG Startups Down in 2009

By pete_gallagher

Industries immune to the economic downturn were few and far between in 2009 and, unfortunately, videogame startup companies dependent on venture capital were not one of them.

Venture Beat reports that funding was infused into 97 videogame startups in 2009—to the tune of over $600.0 million—respectable figures, but well off of 2008 figures. 2008 tallied a little over $936.0 million in startup capital for 112 companies, meaning 2009 was off about 36.0 percent.

The year-over-year drop would have been much worse (55.0%) however if Zynga had not raised $180.0 million in a deal earlier this month.

Averages were also down: in 2008 the average capital raised was $8.3 million per company; in 2009 that figure dropped to $6.2 million.

Venture Beat goes on to list all 97 companies and their dollar amounts raised, where known. The top 5 were Zynga, Playdom, Smith & Tinker, PopCap Games and Zula.

Full post as published by GamePolitics.com on December 23, 2009 (boomark / email).