Tag Archive for investment

Global Games Investment to Double vs. 2010

In its 2011 Global Games Investment Review, Digi-Capital stated, “Even though Q3 2011 has just finished, global games investment so far this year is pushing towards double that of 2010, and global games M&A more than double the level of 2010.”  There have been blockbuster transactions like the $750MM EA acquisition of PopCap, but there have been many other investments, mergers and acquisitions across sectors with increasing deal sizes. With most of the Q3 investment activity focused on the two fastest growing segments, social and mobile, overall, investments were directed into:

-       Social,

-       Mobile,

-       Social-mobile,

-       Browser based MMO and

-       Cloud gaming.

Geographically, there has been significant activity from APAC, especially China, Japan and South Korea, as well as from the US. In general, companies have been generally less forthcoming on the prices of their M&A targets this year, which may indicate that not just the headline game deals continue to have strong valuations.

By 2014, Digi-Capital projects global game sales to hit $87B with mobile and social games accounting for $44B.  Almost half of the revenue for online/mobile games is projected to come from China by that time. Although China has a low ARPU (average revenue per user), the high number of users and relative efficiency of Chinese game companies enable them to achieve operating margins of up to 50% — fuel for their growth and overseas acquisitions.

Select Company Valuations

Company Valuation (as of Oct. 4, 2011 – USD)
Activision $10.2B
Nintendo $7.5B
DeNA (Japan) $5.7B
Gree (Japan) $6.9B
Electronic Arts $4.8B
GameStop $3.3B
Take-Two Interactive $1B

Healthcare IT Investments Grow in Q2 2011

Venture capital investments in healthcare-related IT software and services increased more than investments in other area of the healthcare sector in 2Q 2011, according to Dow Jones VentureSource.

Health IT investments grew 27% from $156MM in Q2 2010 to $198MM during the same period in 2011.

There were a total of 19 deals in Q2 2011 – a 58% increase vs. YA with California and Massachusetts continuing their dominance of healthcare venture investment representing 56% of all deals and 75% of venture funding.

Jessica Canning, Dow Jones VentureSource’s global research director, states that total venture investment for health IT is currently at $245MM to date in 2011. In 2010, the industry saw approximately $486MM in investments.

Q2 2011 also saw the percentage of seed VC deals climb 12% — a five quarter high. This trend was demonstrated in all sectors lead by internet, healthcare and clean tech sectors.

Across all healthcare investments in general, early stage investment continued to increase, bouncing back from a 5-quarter low in Q1’ 11.

Medical devices continue to lead investment within the Healthcare sector, followed by relatively strong quarters from Drug Development and Pharmaceuticals.  (Source:  CBInsights, Venture Capital Activity Report:  Q2 2011)

During the quarter, total Venture investment in the sector was 147 deals totaling $1,894M, with the top five deals being:

  • Cameron Health
  • Tesaro
  • Radius
  • Merrimack Pharmaceuticals
  • Ultragenyx Pharmaceutical