Cyprus-based GEM Capital and Easybrain have been included in Drake Star’s Global Gaming Report for Q2 of 2025.
GEM Capital was included in the Most Active Investors – Top Investors by LTM Deal Count category, for its investments in Studio42 and Eschatology Entertainment.
Back in May, GEM Capital, one of the top gaming VC investors with offices in Paphos and Dubai, partnered up with Play Ventures and Arcadia Gaming Partners to invest in Studio42, founded by former Belka Games leaders.
In August 2024, Nicosia-based gaming startup Eschatology Entertainment secured a landmark for local standards US$11.3 million Series A round, led by South Korean gaming giant Krafton, with significant reinvestment from The Games Fund and GEM Capital.
Easybrain, meanwhile, fell under the Gaming League Tables: Top Buyers category, the most active strategic buyers of the last 12 months, for its acquisition by Miniclip from Embracer for $1.2b.
Last November, Embracer Group made a strategic decision for Limassol-based Easybrain to join Miniclip through a divestment deal subject to closing custom conditions. It said Easybrain would continue to operate as an independent developer and publisher.
How the global gaming industry performed in H1
According to Drake Star, public gaming stocks saw a strong rebound in the first half of 2025, with the Drake Star Gaming Index rising 28%, significantly outperforming the S&P 500’s 5% gain. The strongest overall performers were Square Enix, Roblox, and Konami. In Europe, leading stocks included CD Projekt RED, everplay group, and MTG, while in the US markets, Roblox, Corsair, and Take-Two stood out as the top performers.
Gaming M&A activity remained relatively stable in Q2’25, with 46 announced deals. The largest transaction was KRAFTON’s $516M acquisition of ADK, a Japanese company specialising in advertising and animation with some mobile game development. Other notable deals included Epic Games acquiring Loci, Apple purchasing RAC7, and PlayVS acquiring Generation Esports and PlayFly College Esports. PC and console gaming tied with blockchain gaming for the most M&A deals after a notable increase in blockchain gaming deal activity this quarter.
The most active investors over the past year included Play Ventures, BITKRAFT, and Makers Fund among larger funds, while Goodwater, TIRTA, and 1AM Gaming were the leading seed-stage investors. On the strategic side, Krafton, Tencent, and Samsung drove the most activity, while Animoca, Spartan, and Gam3Girl Ventures were the most active players in blockchain gaming.
Outlook
Following the strong rebound of public gaming equities in the first half of 2025, Drake Star expects a new wave of M&A activity throughout the remainder of 2025 and 2026, as gaming companies look to leverage their higher equity valuations for inorganic growth. Additionally, IPO activity is likely to pick up, supported by the broader market recovery.
Private equity participation in the gaming ecosystem is expected to remain very active, with some publicly traded gaming companies potentially being taken private and PE firms taking growth equity positions in large private gaming companies.
Key growth segments are expected to include AI and tech platforms. Later stage financings will likely continue to be challenging.
