A $150 million fundraising round has been announced by Fenix Games. The round is backed by Dubai-based Cypher Capital and Phoenix Group.
The fund will be used to create a game publishing company
It is the mission of Fenix Games to become a publisher and platform company that is focused on bringing blockchain games to market. The company intends to invest in, acquire, and publish both existing and the next generation of blockchain games.
“We plan to acquire, invest, publish, and operate in select cases games and studios,” said Fenix Games CEO, Chris Ko.
A few dominant players will emerge to take blockchain gaming to the next level in the next phase of the blockchain gaming industry, according to the company.
In an interview with GamesBeat, Chris Ko, CEO and cofounder of Fenix Games, compared the company to a venture capital fund.
“The market is similar to earlier [mobile gaming at the rise of free-to-play games] but it hasn’t found its Clash of Clans for blockchain games yet. We’re using the VC arm to fund the next generation of games. We’re actually going to start off with a huge base of capital to invest in those studios, He said.
“We’re also looking to use our balance sheet to acquire a bunch of existing games in the Web2 space to build a portfolio. And that will be the right base for our portfolio,” he added.
Building market for the blockchain gamers
In addition, Ko emphasized that blockchain gaming does not currently have the same market as traditional video games, such as those on consoles and mobile devices.
“We believe that this is temporary as the primary apps on chains are going to be gaming. The infrastructure, tools and support just does not exist. We believe there is an opportunity for the role of Publishing to elevate its role in the gaming ecosystem,” said Ko.
Increasingly experienced game developers are stepping into blockchain gaming, particularly after Apple announced its intent to make mobile games more privacy-friendly.
As of now, only a small number of games have been developed for blockchain platforms, according to Fenix Games.