/// Digi-Capital: Mobile Games Still Growing, But Lots of Investors Ran Away Post-Zynga

July 17, 2013  |  All Things Digital


Mobile is still blowing up, and games are still dominating mobile usage and revenue, according to gaming-focused investment bank Digi-Capital. But in a new report , the bank said investors burned by Zynga’s IPO are not taking the bait. “In our experience, we haven’t seen a market as large, growing as fast as mobile apps/games,” Digi-Capital managing director Tim Merel said. “We think this could be the highest-growth large technology market today. Yet capital markets aren’t taking advantage of the opportunity.” The reason? Merel blames the “social games investment bubble in 2011″ — culminating in Zynga’s lackluster IPO in December of that year — which raked in about $1 billion in venture investments, out of a record $2 billion invested in games that year. Game investments by VCs sharply dropped post-Zynga, with only $853 million invested in 2012. Investments have recovered to $706 million for the first half of this year, mainly in mobile games

Originally posted here:
Digi-Capital: Mobile Games Still Growing, But Lots of Investors Ran Away Post-Zynga


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