INDUSTRY SPOTLIGHT

Mobile Gaming

Immerse yourself into a burgeoning and fast-evolving landscape of mobile gaming. Discover the untapped opportunities, navigate potential hurdles, and arm yourself with strategies to carve out a distinctive space in this fiercely competitive market.

Future of the gaming world at your fingertips

As technology races forward, the mobile gaming industry is skyrocketing, being fueled by the widespread adoption of smartphones and changing customer preferences, partially owing to COVID-19. Things like 5G technology, AR & VR, cross-platform gaming, esports, educational gaming make the sector a lucrative oasis where reality meets virtual realms, offering both investors and startups flourishing opportunities for growth and revenue. But…

It’s not all smooth sailing

Be armed to the teeth if you aim to rise head and shoulders above the rest. Being a cutthroat market with more than 13K startups and leading companies such as Tencent and NetEase targeted at securing their position and given substantial resources, the mobile gaming sector’s competitive race poses a serious threat to the newcomers.

Plus, navigating monetization is no easy task. A balance between increasing income and not decreasing gamers’ satisfaction matters a lot, yet achieving it is daunting. Over 70% of users (the 2022 survey by App Annie) find in-app purchases forceful or intrusive, dampening their willingness to spend and reducing player engagement. Thus…

Breaking in needs more than a mere concept

At Waveup, we specialize in crafting effective growth blueprints and providing comprehensive support in fundraising, M&A scouting, and market-entry strategies. Having secured over $2B in funding and propelled the growth of 600+ businesses within 80+ verticals, including the mobile gaming industry, our team knows all the ropes of this playground. Let’s dive deeper into this flourishing industry by checking our mobile gaming market research.

3.6x growth
The mobile gaming market size is projected to skyrocket to $674.5B by 2032 compared with 2023 $184.4B.

 

51%
Around 51% of the global video game revenue is attributed to mobile gaming.

6.6B

There are over 6.6B smartphone users globally.

54.57 Mbps

A 55% leap in the average global mobile download speed compared to 35.1 Mbps in 2020.

$1.38B

Is the estimated global esports market size.

VENTURE LANDSCAPE

In 2022, the mobile gaming venture capital reached $1.95B

Key verticals, attracting substantial investment:

  • Game Development Studios
  • Gaming Platforms and Ecosystems
  • eSports
  • Cloud Gaming

Leading mobile gaming investors we worked with

Write to us to know more

WAVEUP VIEW

Hurdles mobile gaming startups tackle

Despite the robust investment interest and numerous promising opportunities, mobile gaming startups face significant challenges.

Sprint of the screens

While entering the mobile gaming industry, be ready to swim with sharks. This sector is highly competitive, being flooded with over 13K startups and numerous key players with deep financial pockets—Tencent with revenue of more than $28B in 2021 and NetEase with over $10B correspondingly. Yes, gaining a foothold in this market is an uphill task.

Winning users’ hearts

Retaining customer loyalty requires you to build a moat—a number of effective strategies to prevent clients from switching to competitors. Let’s have a look at Voodoo and Ketchapp, famous mobile gaming companies known for their aggressive marketing campaigns and spending millions of dollars (for instance, Voodoo spent over $300M in 2021) to acquire new users.If you aren’t ready to pour such money into marketing, you may follow the footsteps of Supercell and focus on building a community around the game to foster players’ loyalty.

Cracking profitability code

Balance is vital for monetization. And here’s why: on one hand, game developers need to create a steady income stream to keep the business afloat, while on the other hand, they must ensure an enjoyable experience for players. Many games fail to monetize their products with ads. Among them is ‘Flappy Bird,’ a simple yet catchy game that faced challenges with ad-based monetization, leading to player fatigue. Of course, many viable and sustainable monetization strategies exist, such as hybrid models or dynamic pricing. You just need to find the one that suits your business the best.

How we can help

Startups
Fundraising advisory

From diligent industry analysis to storytelling and financial forecasts, we’re helping founders crystallize and structure key business fundamentals and translate them into a compelling investment opportunity framed in a winning mobile gaming pitch deck.

Investors
Due diligence and portfolio support

Evaluating potential investments, conducting due diligence, and supporting portfolio companies on their new fundraising rounds.

Established companies
Growth hacking

Discovering market opportunities in the market and developing execution strategies to build actionable and scalable blueprints for growth.

WHO WE ARE

Unlocking your next stage of growth

Waveup is a leading global advisory empowering companies to fuel growth, attract investments, and secure strategic partnerships.

We turn data into business insights that drive results, helping companies excel in the competitive B2C and B2B spaces across 50+ verticals, discovering and catalizing opportunities for growth.

Our investment consulting services for mobile gaming startups

Market intelligence

Fundraising support

Pitch decks

Financial models

Investor research

Growth consulting

Go-to-market strategies

Marketing/sales materials

Design support

Learn more

FAQ

What makes the industry appealing for mobile gaming financing opportunities?

The mobile gaming industry shines like a lucrative oasis for investors owing to expansive reach, high engagement levels, innovative monetization strategies, lower development costs, and tech advancements.

What is the current size of the mobile gaming market, and its potential for future mobile gaming startups?

The current mobile gaming market size is $184.4B. It’s expected to triple by 2032, reaching $674.5B. The market presents a fertile ground for startups brimming with numerous opportunities: niche markets, cross-platform gaming, localized content, esports, cloud-based gaming, blockchain and NFT integration, etc.

How challenging is it to secure funding for mobile gaming startups nowadays?

Despite high competition and market saturation, securing funds within the mobile gaming realm is possible rather than challenging due to the rapidly growing market, tech advancements, and global reach.

How long does it take to create a mobile gaming pitch deck and a financial model for a mobile gaming startup?

Typically, our team requires about two-three weeks to craft these documents, ensuring they are both insightful and strategically sound. However, it is always best to negotiate timelines on an individual basis, considering the specific needs and complexities of your startup project.

What are the key mistakes mobile gaming startups make in their pitch decks?

Many startups omit a strong investment narrative and a well-articulated business model in their mobile gaming pitch decks, leaving potential investors unconvinced about the venture’s profitability and sustainability. They often neglect to answer the pivotal ‘Why Now’ question, failing to highlight the current market potential. Plus, not discussing the competitive landscape makes it difficult to demonstrate how the startup plans to establish its presence in a crowded marketplace.

What are the main challenges mobile gaming startups face, and how are they tackling them?

Mobile gaming startups primarily face fierce competition and user retention in a saturated market. To navigate these challenges, they are focusing on carving out a niche with unique gaming experiences and leveraging data analytics to improve user engagement and personalize content. Plus, startups are adopting innovative monetization strategies and forming strategic alliances to strengthen their position in the market.

How competitive is the mobile gaming market?

The mobile gaming market is extremely competitive, characterized by a constant influx of new titles (nowadays, there are over 13K startups) and a plethora of established players such as Tencent, Netease, Garena, and Activision Blizzard competing for user attention.

What services do you provide for investors who are either considering or have already invested in mobile gaming startups?

We help VCs analyze investment opportunities in the mobile gaming sector. Our method includes detailed market research, which is presented in a simple, visually appealing presentation full of key insights. Also, we offer extensive fundraising support to portfolio companies inside and outside the mobile gaming sector.

Do you provide mobile gaming M&A support?

Yes, sure! We offer assistance in achieving your M&A objectives within the mobile gaming sector or beyond. Our services span initial deal sourcing, valuations, conducting due diligence, and facilitating post-deal cooperation, ensuring a seamless and successful M&A process.

Do you make intros to mobile gaming VCs?

Absolutely! We specialize in connecting startups with the relevant mobile gaming VCs. After a careful evaluation of your project based on various factors such as round size, team setup, and product, we facilitate smooth collaboration with investors, guiding you throughout the deal process and thereafter.

Do you provide comprehensive mobile gaming market research on request?

Sure thing! On request, we can provide bespoke market insights on the mobile gaming industry. This service includes detailed industry reports, insightful competitor evaluations, and comprehensive market research. Utilizing data taken from credible databases, we facilitate a deep and broad understanding of the mobile gaming sphere, highlighting its complexities, potential, and competitive dynamics.

Which mobile gaming startup funding stages do you assist with?

Our team extends growth and fundraising assistance to mobile gaming startups at all critical stages, beginning with Pre-Seed and advancing through to Series C+ phases.

Start your growth journey with us

Stepping into the mobile gaming landscape? We know the way. From end-to-end fundraising support to outsourced M&A guidance and growth blueprinting, Waveup will help you accelerate your journey to success. Drop us your email, and let's talk!

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