Gaming VC firm Konvoy plans to invest $150M in blockchain gaming

Konvoy, a U.S.-based gaming-focused venture capital firm, has announced the launch of Konvoy Fund III, a $150 million venture fund dedicated to platforms and technologies in gaming that it intends to use to invest in early-stage companies. 

According to a Bloomberg report, Konvoy’s plans for the fund include a 20-30% allocation to investing in blockchain and digital assets-related games. Josh Chapman, one of the three founders of the firm, said that Konvoy is excited to participate in the digital assets market. 

“We’re excited to back them through the thick and thin… One hundred percent exposure to crypto would not be the right strategy for us, but 0% would also be the wrong strategy,” Chapman said. 

Its top consideration for the allocation is to make token-based investments in the companies instead of seeking equity. The founder argued that blockchain technology has the potential to improve the gaming experience of players and allow them to earn money while playing. 

The fundraising is not the first time the company will venture into investing in web 3 gaming firms. Konvoy was one of the early backers of Sky Mavis, the developers of Axie Infinity. It also invested in blockchain-based game Genopets and Ready Player Me—a platform for designing virtual avatars that can wear NFTs. 

Chapman and his brother Jason Chapman founded Konvoy together with their childhood friend Jackson Vaughan back in 2018. Outside of blockchain gaming, Konvoy is looking to invest in traditional gaming startups, especially those that develop gaming infrastructure and intersect with other industries. 

Blockchain gaming attracting more investors and users

Blockchain gaming is primarily used to refer to games powered by NFTs and gives players rights to own parts of the game and earn from it. The term came to the limelight with the NFT boom and the popularity of play-to-earn games like Axie Infinity. 

Platforms in the space have been seeing a boom in user activity despite the digital assets bear market, according to a report by DappRadar. 

Since last year, the sector has also been attracting more diverse investors. Early this year, Square Enix, a Japanese gaming giant, and owner of gaming franchises like Tomb Raider, also announced that it would sell off some of its gaming intellectual property (IP) and studios. The funds from the sale will be invested in exploring blockchain gaming.

Watch: The BSV Global Blockchain Convention presentation, Scaling Games on Layer One: Why It Matters

https://www.youtube.com/watch?v=ggbZ8YedpBE&t=5997s