The web3 gaming sector has seen a wave of new investments, with five game and infrastructure developers collectively raising over $38 million in the past week. This surge in funding coincides with the Game Developers Conference (GDC), suggesting that industry events continue to play a role in driving investor interest. Despite a broader decline in year-over-year funding, these recent raises highlight continued confidence in blockchain-based gaming, AI-driven development, and alternative monetization strategies. The companies securing funding range from AI-powered game publishers to on-chain MMORPGs and competitive multiplayer experiences, reflecting the evolving landscape of web3 gaming.
Web3 Gaming Startups Secure Over $38 Million This Week
Over $38 Million in Funding
Five web3 gaming and infrastructure startups have raised over $38 million this week, timing their announcements around GDC. Year-over-year funding has dropped sharply, but investors are still backing innovation in blockchain gaming. Here's what each company is building:
M10 Secures $3M for Competitive Multiplayer Gaming
M10, a web3 game developer and publisher, has closed a $3 million seed round. The studio is working on a competitive multiplayer shooter designed to fix problems with the free-to-play model, especially predatory monetization. CEO Mohamed says the team wants to build a solid shooter experience while rethinking how free-to-play works. The goal is to let players generate value inside the game, setting a different standard for competitive multiplayer gaming.
M10 Raises $3 Million Led By Sui Foundation
PlaysOut Receives $7M to Expand Mini-Game Platform
PlaysOut, a web3 mini-game and SDK platform, has raised $7 million in seed funding. The platform gives developers infrastructure for publishing, monetizing, and rewarding users through mini-games that run outside WeChat. PlaysOut has partnered with Tencent to port thousands of WeChat games to Telegram. The funding will go toward building higher-quality mini-games, growing the ecosystem, and locking down partnerships with major super apps.
PlaysOut Raises $7 Million with $70 Million Valuation
Ephyra Secures $10.5M in Series A Funding
Ephyra, formerly Game Beast, has raised $10.5 million in Series A funding. The company has rebranded and shifted focus toward AI-powered companions inside a web3 gaming platform. Originally, Ephyra planned to build user-generated content tools for Roblox and buy up strategic game and data assets. This round follows a $3.7 million pre-seed in September 2024, showing investors are still interested in where the company is headed.
Ephyra Secures $10.5M in Series A Funding
Kamigotchi Raises $1.3M for On-Chain MMORPG
Kamigotchi, a fully on-chain idle MMORPG, has closed a $1.3 million seed round. The game mixes strategy, pet-raising, and PvP mechanics. Investor Apix has backed the project, calling out its innovative approach and growth potential. Kamigotchi is built to use a flywheel effect by integrating with FOCG, Initia's rollup network, and a token economy, which could help keep players engaged long-term.
Kamigotchi Raises $1.3M for On-Chain MMORPG
Slingshot DAO Raises $16M Prior to Token Launch
Slingshot DAO has announced a $16 million funding round one day before its token launch. The type of round hasn't been disclosed, but it's likely a token round. Slingshot DAO publishes AI-generated Roblox games and claims to have launched over 1,000 games, generating more than $25 million in revenue and paying out $3.1 million to developers. The platform lets Roblox developers submit game concepts, which SLING token holders vote on. At the end of each season, the most popular ideas get funding and support.
Slingshot DAO Raises $16M Prior to Token Launch
Web3 Gaming Investment Landscape
Investments in crypto games, protocols, and infrastructure projects have passed $100 million this year. The sector has seen a sharp drop in funding year-over-year since peaking in 2021. But these recent announcements show investors are still interested in web3 gaming, especially AI-driven game development, blockchain-based ownership, and alternative monetization. The broader funding environment may be contracting, but there's still room for innovation and growth in web3 gaming.
