Companies in the gaming sector are facing some headwinds amid an overall decline in funding and industry-wide fallout from a pandemic-led hiring and expansion spree.
The gaming market is not dying, however, and many investors feel that it’s one the most lucrative consumer-facing industries out there. Griffin Gaming Partners certainly believes this, as one of few venture capital firms in the world that places all its focus, and its chips, on gaming. With more than $1 billion in assets under management, up from $235 million in November of 2020, Santa Monica-based Griffin is rapidly growing its portfolio of local and international studios and developers.
According to game industry advisory firm Games One, Griffin is currently the largest gaming fund in the world by assets under management. The firm led a $100 million series B round this month for Irvine-based gaming studio Second Dinner, and its portfolio includes Discord, West Hollywood-based Digital Insight Games, Palms-based Wave, Santa Monica-based Muus Collective Inc. and Culver City-based Scopely Inc.
Nick Tuosto, one of Griffin’s three managing directors and co-founders, said his firm’s specialty is unique, adding that the knowledge of the gaming market he shares with co-founders Peter Levin and Paul Sanderson has allowed the firm to deploy capital effectively while understanding both the funding and the operational aspects of its portfolio companies. Levin previously served as the president of interactive ventures, games and digital strategy at Santa Monica-based Lions Gate Entertainment Corp., Tuosto is an active managing director at investment bank LionTree LLC and Sanderson has invested in companies such as Discord and Century City-based Triller Corp. over his own 23-year venture capital career.
“We’re making great progress and we’re growing as an organization,” Tuosto said. “Everybody on the team loves games and this is something that’s this unique intersection of people’s…
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