The state of the gaming economy today with Konvoy Ventures

Jan 18, 2024

Josh Chapman shares his journey with Konvoy Ventures, the current state of the gaming economy, the sentiment among VCs and founders, and when and how the industry will improve.

Josh attributes the downturn in gaming investing to broader market dynamics, including a reevaluation in the tech sector amid rising interest rates and revenue constraints. In spite of market conditions, Chapman outlines key criteria for funding success in today's environment, emphasizing the importance of a cohesive team with diverse skill sets and a demonstrated commitment to their vision. More broadly, Chapman details why visibility is paramount for studios, especially smaller ones. With high user acquisition costs, developers must focus on deeper engagement and loyalty to retain players. Building passionate communities around games can ensure long-term success. 

About Josh Chapman:

Josh Chapman is one of the managing partners and founders of Konvoy Ventures, a venture capital firm that invests exclusively in the video gaming industry (primarily tech, infrastructure, and platforms). Prior to Konvoy, Josh worked at BlackRock and Morgan Stanley in New York City. He lives in Denver, and his favorite games right now are Halo Infinite, Formula 1, and CS:GO.

In this episode, you'll learn about:

00:57 - The story behind the founding of Konvoy Ventures and their investing thesis.

03:24 - How the Konvoy founding team came together.

05:20 - Josh and Konvoy’s focus on ideas, momentum, organization, and rigor; opposed to pedigree and the names on someone’s resume.

08:15 - Josh’s explanation for the dip in VC investment in gaming and tech and the shift in focus from late-stage to early-stage companies.

13:27 - the criteria that is used to evaluate companies for investment in the current climate.

16:34 - Josh’s observation of the sobering sentiment across the founder community and the fear that is impacting how VCs are operating currently.

18:58 - The advice that Josh gives his portfolio companies in today’s environment.

20:50 - Josh’s prediction for when the investment market will improve.

22:42 - The key games industry trends that Konvoy is excited about moving forward, including UGC, the shifts in the mobile free-to-play industry, and how AI will impact NPC experiences.

29:27 - The challenge of game discoverability and how Josh thinks the market will change to address this.

34:39 - Josh’s POV on the emergence of new marketplaces outside of the walled gardens, and how Apple and Google may react.

40:11 - What Josh is most excited about moving forward in the gaming industry.