Bitkraft

Market position

BITKRAFT has been described as the most active venture capital investor and lead investor in gaming globally in 2020, 2021 and 2022, per research cited from InvestGame and Drake Star Partners. TechCrunch characterized it as comparable to Singapore-based Play Ventures, which has raised $222.9 million across four funds, and reported that Bitkraft cited a top-decile ranking in a Cambridge Associates benchmark.

The firm invests exclusively around gaming and related technologies rather than treating gaming as a sub-vertical, operating specialized vehicles including dedicated token funds, and draws on founder-operator experience in esports through Jens Hilgers (ESL, G2 Esports, Bayes) and other partners with backgrounds at MTG, ESL and DreamHack.

Go-to-market

The firm sources deals through a globally distributed, remote team with partners based in the United States, Europe, Asia, India and South Africa, and through the founders' networks in esports and gaming. It positions itself as able to lead rounds, with reported check sizes of roughly $2 million to $5 million and an average ticket around $4 million in its second fund, allocating approximately half of fund capital to initial checks and half to follow-ons.

Early- and mid-stage founders building game studios, gaming platforms and infrastructure, esports, interactive media, AR/VR and immersive technology, Web3/crypto gaming and AI companies, primarily in North America and Europe with additional coverage of Asia, India and MENA.

Geography

Global. Offices and primary locations have been reported in San Francisco and Santa Monica, and later Denver, Colorado, with a fully remote team of 25+ spread across the United States, Germany, the United Kingdom, Portugal, Spain, Argentina, Singapore, India and South Africa. Investment focus is global with an emphasis on North America and Europe, plus expansion into Asia.

History

BITKRAFT was founded in 2015 and announced the close of an initial pre-seed fund of $18 million in April 2017. Venture Fund I closed at $165 million in August 2020, above an initial $125 million target. Venture Fund II launched at $271.7 million in April 2021, followed by a $75 million Token Fund I in October 2021 for blockchain gaming and digital entertainment, and a $100 million Opportunity Fund in May 2022. Token Fund II closed at $220.6 million in April 2023, when the firm reported $830 million in assets under management and expansion into Asia. In April 2024 it was reported to be raising a third venture fund of $275 million for seed and Series A investments in game studios and platforms, with more than $1 billion in assets under management and over 130 portfolio companies.

Risks & controversies

The firm's fundraising and deployment occur against a contracting games investment market, with games investments reported to have declined 72% year over year as of early 2024. Its Web3 gaming exposure carries the risk noted in press coverage that no blockchain-powered game title has yet achieved mainstream consumer success.