Interactive Media And Game Studios Attract Private Capital Interest
New Zealand investors are taking a shine to games software development, according to NZ Private Capital Executive Director Colin McKinnon.
Colin McKinnon explained “We hosted an investor meet and greet event in Auckland in June 24th in association with NZ Games Developers Association, which was the first event in a series that is geared towards cultivating relationships between New Zealand game developers and private investors.”
Internationally, the video game industry has emerged as a fast-growing sector in the past few years. With gamers spending millions on personal computers, cloud and non-console VR content, mobile and subscription-based games, the sector still has significant potential to expand.
Mergers and acquisitions are constantly boosting the space. On 19 July 2021, China gaming giant Tencent agreed to acquire British video game developer Sumo Group for $1.26 billion. The merger will give Tencent access to Sumo’s portfolio that includes Sackboy: A Big Adventure and more racing games based on Sonic, the Hedgehog franchise. Since the coronavirus pandemic, video games have engaged millions stuck indoors due to social distancing and lockdowns.
Colin McKinnon noted: “The sales of NZ companies such as Grinding Gear Games and Kiwi Ninja demonstrate the opportunities for investors in this country. We expect the Game Developers Association meeting in Wellington in August will also attract investor interest.”
NZ Private Capital is a not-for-profit industry association committed to developing the venture capital and private equity industry in New Zealand. Its core objectives include the promotion of the industry and the asset class and to develop a world-leading venture capital and private equity environment for the benefit of investors and entrepreneurs in New Zealand.
New Zealand Private Capital aims to foster understanding that private equity and venture capital firms accelerate the ambition of New Zealand business owners through operational improvement and investment performance.
New Zealand is home to many examples of private capital partnering with companies to improve growth and performance, to share expertise and capital. This ultimately delivers improved productivity, creates jobs and contributes to the national economy.
Association members include venture capital and private equity investors, financial organisations, professional advisors, academic organisations and government or quasi-government agencies.
The association also helps businesses navigate and understand the Private Equity and Venture Capital world. Markets and growth require the free flow of capital and the association provides an important role in linking business owners with investors.