The COVID-19 pandemic accelerates the adoption of new technologies and already well-advanced cultural changes. According to a handful of large caliber investors, this dynamic is particularly strong in games and extended reality.
Unlike other segments of the startup and technology world, where ratings have been reduced, start-up companies focused on creating new games, gaming and entertainment infrastructure in virtual or extended reality have no trouble raising funds. They even saw valuations increase, according to investors.
“The ratings have increased quite significantly in the gaming industry. The assessments have increased 20 to 25% more than I would have seen before this pandemic, "said Phil Sanderson, co-founder and chief executive officer of Griffin Gaming Partners, told other participants virtual panel during the Los Angeles Games Conference earlier this month.
The appetite for new investment is motivated by the entertainment industry engaging in virtual events, animated features, games and social media platforms after widespread orders for on-site shelters made physical events impossible.