The Gaming Startups Bucking the Funding Drought

Like most startups, gaming companies have seen interest from venture capitalists fall off sharply in the last year. But appetite is not completely dead. Investors have been backing those that prioritize creator-generated content and those that incorporate generative artificial intelligence—and sometimes both.

Gaming startups raised $1.1 billion in 140 deals in the first quarter, according to a report out Tuesday from PitchBook, down 76% in dollar terms from a year ago but up 11% from the fourth quarter.