Major Crypto VCs Fund Turkish Game Studio Circle Games

The lines are increasingly blurring between the traditional gaming industry and the Web3 gaming space, as leading crypto investment funds begin to seek out and pour capital into studios with strong development fundamentals, regardless of whether they have integrated blockchain yet. A prime example of this trend is the successful funding round for Circle Games, a game studio based in Istanbul, Turkey.

According to a report from Tech in Asia, Circle Games recently completed a seed funding round totaling $7.25 million. Notably, the round was led by Bitkraft Ventures, one of the world's leading venture capital funds specializing in gaming, esports, and Web3. Joining Bitkraft is a list of other reputable names in the industry, including a16z Speedrun (the gaming fund of Andreessen Horowitz), Play Ventures, e2vc, and Anagram Ventures.

The raised capital will be used by Circle Games to further develop its current project, "Sort Express," while also investing in other unannounced titles and expanding its team. The studio's goal is to innovate the player experience in the casual and puzzle game segment by introducing new mechanics.

Why Are Web3 VCs Investing in Traditional Game Studios?

This deal is particularly interesting because it shows a strategic shift in the thinking of crypto investors. Instead of focusing solely on "crypto-native" projects from the start, funds like Bitkraft and a16z are betting on the most crucial factor for a game studio: the ability to create fun and engaging games.

Many first-generation blockchain games failed because they focused too much on the "earn" element while neglecting the "play" element. The industry has since learned that a successful Web3 game must first and foremost be a good game. Therefore, investing in a talented team like Circle Games, which has experience creating compelling gameplay, is a strategic move. The VCs can then support them in integrating blockchain elements like NFTs or a token at a later stage, once the gameplay foundation is solid.

This deal also takes place as Turkey is strongly emerging as a global mobile gaming hub, second only to the United Kingdom in the EMEA (Europe, Middle East, and Africa) region for game development. The combination of talented human resources in Turkey and capital from global crypto investment funds promises to create breakthrough gaming products capable of attracting both traditional gamers and Web3 users.