Verve Capital has invested in the 'Seed Extension' round. Other participating funds include Norte Ventures, Compa Capital, and Crivo Ventures.
What is Falco?
Falco is a Web3 game publisher focused on free-to-play games that are fun, engaging, and offer Web2 playability with a layer of Web3 monetization. They are currently working on several games and expect to launch the first one by the end of the year.
The Team
We were highly impressed with the entrepreneurs from the beginning. We conducted a series of conversations with people who have worked with them in different capacities and received fantastic feedback from all sides about the founding team:
He began his career at WildlifeStudios while they were still preparing for their first investment round (a Series A that valued the company at an incredible $1.3 billion). During his years at Wildlife, Piccini played a significant role in launching two of the company's biggest successes.
Started his gaming career 15 years ago as a lead gameplay engineer at LucasArts (Lucas Film) in the Bay Area. In the past eight years, he has been leading engineering teams in Latin America.
For investors focusing on Pre-Seed & Seed stages like Verve Capital, prioritizing team analysis is of utmost importance.
The Market
The gaming industry is experiencing tremendous growth and is poised to continue expanding. In 2019, the global gaming market generated $152 billion in revenue, and by 2021 it reached $214 billion. Projections indicate that it will surpass $300 billion in revenue by 2026, surpassing the size of the music, TV, and film industries combined!
Within this industry, Web3 is emerging as a trend. Web3 technology and blockchain introduce a new dimension to the gaming experience, primarily focused on ownership. This layer of ownership has the potential to redefine game development and perception. In Web3, players have full ownership of the virtual items they earn or purchase in games. They have the freedom to choose when, where, and at what price to trade these items.
Final Analysis
Web3 will be groundbreaking in the gaming industry. Not only will it increase engagement by bringing fans closer to games, but it also has the potential to boost in-game purchases, as players know they can resell acquired items and recoup part of their investment over time.
Although the current Web3 gaming market is still in its early stages, we have strong indications that it could become a market of over $90 billion within 3 to 4 years.
Another positive aspect of the gaming industry is its proven resilience to economic cycles. Due to its addictive nature, players will always play; recessions only marginally affect the industry. Ultimately, it is cheaper to stay at home and play than to go out.
Another factor that elevates our confidence in Falco is the increase in the number of venture capital funds investing in games. There are traditional ones like a16z, Benchmark, and NfX, which have been heavily investing in the sector for a long time, but there are also numerous specialized funds such as Makers Fund, Bitkraft, 1Up, Hiro Capital, and many others. Together, game and blockchain funds raised over $13 billion in 2022 alone.
The founders are indeed our biggest bet in this investment. They have impressed us in various ways: their resumes, specific knowledge and experience in the industry, pioneering vision, and great ability to identify and close good deals. They are not just players, but there are several cases proving that they have what it takes to make a game publisher work. As mentioned above, we were impressed with the excellent reviews we received from people who knew them from different backgrounds, where the common theme in all the reviews is that they have always been above average in every challenge they faced.
May Falco be their greatest challenge yet, and may each of them continue to deliver excellent results! Count on us! 🚀
