Makers Fund has closed its third $500 million fund to invest in interactive entertainment startups.
Founding partner Jayson Chi told TechCrunch it now has more than $1 billion in assets under management (AUM). The third fund is Maker’s largest after the $200 million fund raised in 2018 and a $260 million fund in 2020.
Makers Fund’s third fund will focus on early stage investments and write checks from $500,000 to $40 million, Chi said, adding that the median check will be between $5 million and $10 million. The VC firm is committed to supporting founders for the long term, and so reserves much of its fund for follow-up investments, Chi noted.
Makers Fund launched its new vehicle last summer and completed the fundraiser in two months, Chi said in an interview. It has made more than 10 investments from the third fund, including Alta and AudioMob. The company is actively seeking investment opportunities worldwide for content, including VR, AR games, and technology that supports developers and publishers in interactive media. In addition, it is interested in investing in social networks, platforms and tools for gamers and creators, he noted.
Makers Fund co-founders Michael Cheung and Chi noted that much of the innovation and appreciation in interactive media comes from startups. Still, talented creators in gaming don’t have the same funding or support as their counterparts, such as traditional tech companies in the industry, Chi said. Creators wanted to fill the gap and support those startups.
The limited partners include US-based endowments, foundations and institutions, according to Chi, who did not provide the names of LPs.
“We founded Makers with the belief that we are entering the golden age of interactive entertainment, to change the way we all think about investing in the creative medium and how we support fledgling founders,” said Cheung. “The industry has since catapulted from $100 billion in 2017 to $170 billion in 2021 as consumer adoption and engagement accelerates across all demographics and geographies. Our latest fund enables us to support founders on their journey from product introduction to global scaling.”
Founded in 2016, Makers Fund now has more than 90 portfolio companies in total, including content studios such as Dream Games and Avia Games, technology solutions such as Parsec and Genvid, and consumer platforms such as Medal.tv and VRChat.
Makers, which has a team of 26, recently hired talent partner Garry Hill, who previously worked at Activision Blizzard, Reddit and Paxo; director Alli Ottarsson, who previously directed production of Eve Online, League of Legends and Valorant; and director Andrew Willson, with experience leading gambling practices at McKinsey.
“The Makers Fund’s approach is to partner with entrepreneurs building innovative games, tools and technology that will define the next generation of interactive entertainment,” said Chi. “We treat our investments as partnerships, providing founders with an in-depth support system and strategic guidance from a network of advisors who are equally passionate and committed to the gaming industry.”
It has offices in many global gaming and tech hubs, including San Francisco, Los Angeles, New York, Reykjavik, London, Tokyo and Singapore.
This post Makers Fund Closes Third $500 Million Fund to Support Interactive Entertainment Companies – TechCrunch
was original published at “https://techcrunch.com/2022/03/10/makers-fund-closes-third-fund-at-500m-to-back-interactive-entertainment-companies/”