The mobile gaming industry has struggled in recent years, impacting funding opportunities greatly. A slight uplift has been rising from the horizons but we’re still far from being out of the investment slump. To understand how VCs invest in mobile games, we spoke with Joakim Achrén, a seasoned investor and General Partner at F4 Fund.
Where is the growth potential?
According to Joakim, casual games will continue to dominate the mobile space, given their appeal to a broad audience of non-core gamers. “Mobile is the number one place for the non-core gamers to consume their games,” he explained. With the increasing accessibility of mobile gaming, there is room for fresh, engaging titles that cater to this ever-expanding audience.
Key investment criteria for mobile game studios
When evaluating a potential investment, Joakim emphasized that the stage of the company plays a significant role in the decision-making process. “If they haven’t yet launched the game, then I look at the novelty of the gameplay. That really matters a lot to me,” he said. For studios with a game already in the market, he typically considers metrics like retention rates and return on ad spend (ROAS) to gauge performance.
Breaking into the VC network
Many early-stage developers struggle with gaining access to VC networks, but Joakim reassured that cold outreach can also be an effective strategy. “If you have a deck and can communicate well what you are working on, it’s not a problem to just go in cold,” he suggested. For those looking for a warm introduction, leveraging connections with founders who have previously raised VC funding is a solid approach. “Just ping founders on LinkedIn and see if they are interested in sharing your deck with the VCs that they know,” he advised.
Exciting trends in mobile gaming investments
As an investor, Joakim is particularly excited about teams that demonstrate a deep understanding of market demands and execute flawlessly. “Teams that really know what will work in the market. Them going out and launching something incredible,” he said. This highlights the importance of having both market knowledge and the ability to deliver a compelling product.
The role of data in VC investment decisions
For games that have already launched, data plays a crucial role in investment decisions. “If the game is launched, I would look at retention numbers and possibly ROAS. Those tell me a lot about how the game is doing,” Joakim explained. However, he also noted that understanding what good performance looks like within a specific genre is essential. “There’s a lot of data that is needed to make decisions,” he added.
Final thoughts
The mobile gaming industry presents exciting opportunities for both developers and investors, but securing VC funding requires a mix of innovative gameplay, market understanding, and strong performance metrics. VCs invest in mobile games that demonstrate high retention, solid monetization strategies, and a clear market fit. Whether through direct outreach or strategic networking, early-stage developers can position themselves for success by crafting a strong pitch and demonstrating their game’s potential. As mobile gaming continues to evolve, investors like Joakim will be watching closely for the next breakout hit.
