Gamerforce Ventures, an early-stage venture capital (VC) firm focused on the e-sports and gaming sector across Southeast Asia, is looking to raise as much as $15 million for its first fund, according to founding managing partner Lance Quek.
The firm, headquartered in Singapore, has set a target of June 2020 to raise the corpus.
“Firstly, as a millennial and former casual gamer myself, I consume a lot of content from this space. We are seeing a high compounded annual growth rate of 10 per cent globally and 25 per cent in the ASEAN region,” Quek told DealSteetAsia over an exclusive interaction.
The spike in sponsorship deals between brands and esports players in the region are increasingly creating investment opportunities in startups focusing on this sector, he added.
Gamerforce Ventures, established last year, is looking to clock early-stage investments primarily at a seed or Series A level. However, it is also open to investing in Series B rounds as the industry matures.
Gamerforce Ventures currently is looking to write cheques in the range of S$100,000 to S$250,000 in the first round, and up to S$1 million in the subsequent rounds.
“We expect to deploy about 40-50 per cent of our capital in follow-on rounds for our top performers”, said Quek.
Gamerforce Ventures’ current LPs are individuals who are “a group of our friends – mine and my partners,” said Quek. Going forward, the firm will look at tapping family offices, corporates and institutions for bigger funding in the space.
So far, Gamerforce Ventures claims to have closed one investment in a Singapore-based e-sports, whose identity could not be ascertained. “We have identified three other companies in the e-sports space for a potential investment. However, due to confidentiality, we are not at liberty to disclose further,” said Quek.
Apart from the Southeast Asian region, Gamerforce Ventures is also looking to invest in countries such as China, Taiwan, Japan and South Korea. The firm also plans to use a part of the corpus on global investments.
Beyond Southeast Asia, other active gaming investors in Asia include the likes of Korea Investment Partners (KIP), GGV Capital, Alibaba, and Tencent.
Currently, there are a handful of VC firms in Southeast Asia who are looking at niche investment themes. For example, Singapore-headquartered gaming-focused VC firm Play Ventures, alternative protein and foodtech investor Big Idea Ventures and Singapore’s Verge HealthTech Fund that is targeting growing healthtech space, to name a few.