Israeli vgames Fund Raises $500 Million to Launch New Growth Financing for Gaming Firms
Israeli gaming investment fund vgames has secured $500 million to introduce an innovative financing solution for gaming and consumer companies, backed by Phoenix Insurance. Since its founding in 2020, vgames has invested in over 50 companies, building a portfolio of leading industry players and supporting entrepreneurs from initial concept through global expansion. Previously managing about $500 million primarily through equity investments, the fund is now launching a growth financing model designed to address a key challenge for successful gaming and consumer firms: funding user acquisition and expanding their user base without additional equity dilution.
This new financing approach allows vgames to fund user acquisition activities, with repayments tied directly to the revenue generated by the users acquired through the investment, rather than fixed repayment schedules. This aligns the financing with company performance and offers an alternative to traditional loans or further equity raises. vgames collaborates with General Catalyst, a top global venture capital firm, jointly sourcing and evaluating companies, leveraging deep expertise in growth models demonstrated by portfolio companies like SuperPlay.
To date, vgames has allocated over $500 million worldwide to gaming and consumer companies and plans to significantly increase this with an additional $500 million in growth financing. The fund has supported notable companies including SuperPlay, Candivore, Innplay Labs, 44pixels, and PeerPlay. Founder and managing partner Eitan Reissel emphasized that the fund aims to be more than an investor, acting as a partner throughout a company’s lifecycle, adapting financing solutions to evolving needs and enabling growth without sacrificing ownership or equity capital.
In the mobile gaming and consumer sectors, companies often face substantial upfront costs for user acquisition, with revenue returns delayed by months or even over a year. This new financing model helps companies manage these cash flow challenges more efficiently, reducing reliance on equity capital raised from investors to fund ongoing marketing efforts.
