In the most recent quarter, funding from venture capital firms to gaming companies fell to a ten-quarter low, a stark contrast from investment levels one year ago. However, despite funding levels dropping off the cliff, deal activity increased to its second-highest level in the last ten quarters. Both deal volume and funding rocketed to ten-quarter highs in Q2 2011. Since that time, deals are down 11% and dollars are down 76%.
One of the most prominent gaming companies in recent history is Zynga, which falls under the social gaming category. In our next post on gaming, we will take a closer look at recent trends in social gaming and see how the sector is doing following Zynga’s IPO in December 2011.