If startup funding reflected the time people spend on an activity, then gaming would be way up there.
Today, an estimated 61% of Americans play digital games for at least an hour a week, per an Entertainment Software Association report. Globally, members of the youthful Generation Alpha play the most, spending an average of more than five hours per week on games.
Startup investors apparently aren’t impressed. Per Crunchbase data, gaming hasn’t been one of the larger areas for venture investment lately. Startups in the space pulled in around $2.4 billion in 2024, down 12% from the prior year.
Overall, gaming-related startup funding has been falling each year since the 2021 peak. To illustrate, we charted out investment for the past six years…