Venture capital (VC) firm Andreessen Horowitz led a $40 million funding round on March 21 for CCP Games, a developer of blockchain-based, massively multiplayer (MM) online games.
CCP will use the funding to produce a high-budget and thrilling game title with blockchain technology. The company will enable smart contracts to build a closer relationship between players within the game. CCP Games is introducing its planned game within the popular Eve Online gaming universe.
Don’t Miss: The Tesla Of Lawn Mowers: Soon Your Cars Won't Be Your Only Self-Driving, All-Electric Vehicle
Marc Andreessen and Ben Horowitz run Andreessen Horowitz, which invests in early-stage startups and established firms. It invests in various verticals, including cryptocurrency, financial technology (fintech), various information technology (IT) solutions and healthcare.
The investment from Andreessen Horowitz reinforces the growing interest in blockchain gaming and a shift in the ways players engage with games and each other.
To stay updated with top startup investments, sign up for Benzinga’s Startup Investing & Equity Crowdfunding Newsletter
Microtransactions On The Blockchain
Microtransactions in video gaming occur when a player pays money for a virtual item such as a new skin, upgraded weapon or a “loot box” filled with various items. These transactions are common in free games that function under a “freemium” model but also appear in premium games with a traditional fee to purchase or play.
Microtransactions bring developers considerable revenue, with many free-to-play games earning more revenue than traditional games. A 2022 report from research firm Mercator Advisory Group found the market for global online microtransactions was approximately $33.4 billion. It also noted some games bring in massive sums, with League of Legends taking roughly $1.75 billion annually from the game’s loyal 115 global player base.
Blockchain-based networks and games create a new pay-to-earn gaming model instead of the pay-to-play structure that’s enabled with traditional microtransactions. In the new blockchain-based model, called GameFi, users can invest in virtual assets such as non-fungible tokens (NFTs), use them within games or hold them as investments and resell the digital assets for profit. GameFi describes an intersection between gaming and finance, where users can invest in digital assets and turn game-specific tokens into cryptocurrencies and dollars.
See Next: Qnetic Unveils Revolutionary Flywheel Energy Storage System to Accelerate Renewable Energy Adoption
Invest Alongside Silicon Valley VCs
For investors looking to get involved in the blockchain-based gaming market, and invest alongside silicon valley VCs, investors have options. Gameflip is a blockchain-based digital asset marketplace with over $10 million invested from silicon valley VCs currently raising on StartEngine. For a limited time, anyone can invest in Gameflip.
See more on startup investing from Benzinga.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
