BITKRAFT Newsletter : September 2024

???Summit on the Horizon, ???? From Farmville to Farcaster, ?? ‘Black Myth Wukong’ Still Going Strong

Welcome to this edition of the BITKRAFT newsletter, where excitement is building for the week ahead—and for good reason! Next week marks the 2024 BITKRAFT Summit, and we’re rolling out the red carpet for the best and brightest investors, founders, and industry thought leaders. It’s going to be a powerhouse gathering where ideas will fly and gamer tags will be exchanged. Get ready for all the post-event gems we’ll be spilling afterward—you won’t want to miss the recap!

In even more celebratory news, our Founding GP, Jens Hilgers , recently took home the Lifetime Achievement Award at the Esports Awards . A true legend in esports, he continues to push boundaries and inspire through BITKRAFT and beyond. Congrats to our fearless leader! ??

We’re also pumped to announce some exciting partnerships. First, we’ve joined as advisors for the Soneium Spark Incubation Program, which was launched by the Sony Block Solutions Labs. This program is all about empowering the next wave of Web3 builders to create groundbreaking projects. Pro tip: applications close on September 30 , so now’s the time to spark those ideas and apply!

We’re also teaming up with Meta Quest’s Lifestyle App Accelerator, guiding creators to build the future of virtual living. The deadline for applications is October 15 , so hurry up and share how your ideas will change the immersive world.

BITKRAFT RESEARCH

Ben Naylor ’s “From Farmville to Farcaster” explores how decentralization is influencing the evolution of social gaming. It highlights the shift from centralized platforms like Farmville to decentralized ecosystems, where players have greater control over their in-game assets and experiences. The piece also discusses how blockchain and Web3 technologies are enabling new opportunities for player ownership and community-driven game development.

PORTFOLIO NEWS

Voicemod has introduced the Voicemod Key , a voice changer and soundboard designed for Xbox and PlayStation consoles. This tool allows gamers to modify their voice and play sound effects in real time, enhancing their audio experience during gameplay. They also recently unveiled their new official Batman soundboard , produced in partnership with Warner Bros. Discovery.

Stormgate , developed by Frost Giant Studios, Inc. , launched its early access, allowing players to finally experience this real-time strategy game that serves as a spiritual successor to Starcraft. The game aims to bring back classic RTS elements with modern updates, offering both cooperative and competitive modes set in a post-apocalyptic, sci-fi world.

Lynked: Banner of the Spark is a cooperative multiplayer “cozy-action” game by studio FuzzyBot launching in early access on October 22 . It combines strategic team-based gameplay with a laid-back, community-focused experience in a vibrant world.

Return Entertainment has partnered with Aethir to bring GPU cloud gaming to smart TVs , enabling high-quality gaming experiences without the need for dedicated gaming hardware. This collaboration leverages Aethir’s cloud infrastructure to stream games directly to smart TVs, making gaming more accessible to a wider audience.

Riot Games and PLAYBRAIN have signed an agreement making PLAYBRAIN the official tournament operator for the League of Legends Japan League (LJL) and the Japanese broadcast partner for international tournaments. This partnership aims to enhance the competitive scene in Japan while providing localized broadcasts of global League of Legends events.

Superbloom ’s new interior design game Venue has launched , allowing users to discover and engage with local events and experiences. The app let users remodel The Chainsmokers' in-game studio for a limited time.

Higgsfield AI has launched Diffuse 2.0 , an upgraded version of its AI image generation platform, enhancing the capabilities of diffusion models. The update aims to improve the quality, speed, and scalability of AI-generated images for a variety of applications.

Forge Season 2 is now live , bringing significant updates including self-publishing capabilities for game developers. This new feature allows developers to create and manage customizable, no-code loyalty programs aimed at increasing player engagement and building dedicated fanbases.

Trioscope has launched an investment campaign on Republic , allowing individuals to invest in its proprietary hybrid animation platform. This technology blends live-action performances with animation, offering a unique storytelling experience for films, TV, and other media.

CCP Games announced their new space survival simulation game EVE Frontier . Players can now register for the PHASE IV Playtest and Founder Access is coming soon for PC & Mac.

RECENTLY ANNOUNCED INVESTMENTS

Cambria

• MMO project building a Runescape-inspired game with onchain stakes
• Read more

Volley (follow-on)

• AI-powered games company with voice-enabled games for Amazon Alexa, Fire TVs, Roku TVs, and mobile devices
• Read more

Mira

• Crypto-AI startup focused on building decentralized machine-learning infrastructure (here’s BITKRAFT Principal Justin Swart 's explainer with more details. Meanwhile, Mira recently broke down strategies for managing the challenges posed by AI development – check it out here ).
• Read more

Gam3Girl Ventures

• Aspiring to bring leading Web2 talent in Asia to the Web3 world by helping them acquire the necessary skills
• Read more

Cartridge

• Infrastructure provider for fully onchain games and autonomous worlds, and creator of Dojo 1.0, its open-source developer toolset and framework for building provable games?
• Read more

Darkbright Studios

• Developer of Smolbound, a new take on the cozy games / life sim RPG genre, with plans to launch it on the Treasure Layer-2 blockchain
• Read more

"You spend a lot of your time chewing glass when you’re a founder."

David Amor’s name is synonymous with innovation in the gaming industry. With 34 years of experience creating games, David has been at the helm of several pioneering ventures. Notably, he co-founded Relentless, the studio behind the acclaimed PlayStation game Buzz, which won a BAFTA in 2006. After a successful tenure at MAG Interactive post-acquisition, where he contributed to an IPO, David embarked on a new journey. His latest venture, Playmint, seeks to reshape the gaming landscape by leveraging decentralization technologies. Read more .

INDUSTRY HEADLINES

GAMES

Netflix Games surpasses 210m lifetime downloads ?

• Netflix’s mobile games, including both original titles and adaptations, continue to attract a wide audience as part of its broader content strategy.
• According to AppMagic, GTA: San Andreas on mobile has reached 25 million downloads, highlighting the continued popularity of the classic title.
• The game Stranger Things 1984 has generated over 12.6 million downloads, making it one of Netflix’s top-performing mobile titles.

‘Black Myth Wukong’ Is Still Putting Up Wild Numbers A Month After Release

• Black Myth: Wukong has maintained strong momentum, surpassing 5 million copies sold within a month of its release, while also generating hundreds of millions of views on trailers and gameplay videos.
• The game has captured widespread attention due to its high-quality graphics and unique portrayal of Chinese mythology, contributing to its ongoing popularity.
• On platforms like Bilibili and YouTube, trailers for the game have amassed over 250 million views, showcasing its global appeal.
• With over 500,000 concurrent players at its peak, Black Myth: Wukong continues to dominate discussions across social media and gaming communities.

PS5 Pro is Launching in November and Its $699 Price Tag is Raising Eyebrows

• Sony has confirmed that the PS5 Pro will launch in November 2024, with a price of $699.
• The PS5 Pro will feature improved graphics, faster loading times, and enhanced support for 4K gaming and ray tracing compared to the standard PS5.
• Its price tag has sparked controversy, but analysts opine that it is for the “price-insensitive PlayStation ultra enthusiast .”

Electronic Arts Outlines Long-Term Growth Strategy at Investor Day

• EA aims to accelerate growth through AI-driven efficiency and expansion.
• The company expects strong growth in EA SPORTS?, aspiring to be the most valuable sports brand.
• Major investments in The Sims? include a partnership with Amazon MGM Studios and plans to double net bookings in five years.
• EA announced a new Battlefield? experience, launching a community test in early 2025, and is on track to meet its net bookings forecast for fiscal year 2025.

WEB3

UK Introduces Bill to Classify Crypto Assets Like Bitcoin and NFTs as Personal Property

• The UK has introduced a bill to classify digital assets like Bitcoin and NFTs as personal property under English and Welsh law.
• The bill creates a new category of personal property, offering legal recognition and enhanced protection for digital assets.
• It aims to provide clearer legal guidelines and protections against fraud and scams involving digital assets.
• This move positions the UK as a leader in digital asset regulation, following recommendations from the 2023 Law Commission report.

OpenSea Gets 'Wells Notice' From SEC, Calling NFTs Sold on Platform 'Securities'

• The SEC issued a Wells Notice to OpenSea, suggesting some NFTs on the platform may be classified as securities.
• OpenSea’s CEO, Devin Finzer, announced the company’s readiness to fight the SEC’s allegations, emphasizing their defense of creators and artists.
• OpenSea established a $5 million fund to support NFT creators with potential legal fees amid regulatory challenges.
• The notice has sparked debate within the crypto and NFT communities, raising concerns about the future of innovation and regulation in the NFT space.

Bitcoin ETFs Add $250 Million in Surge Ahead of Expected Rate Cut?

• Bitcoin ETFs added $250 million worth of Bitcoin, marking the largest single-day purchase in over a month.
• The surge came as investors anticipated an interest rate cut by the U.S. Federal Reserve, with a 50-basis point cut.
• The renewed interest in Bitcoin ETFs is seen as a response to positive comments from Federal Reserve members hinting at a more aggressive rate reduction.
• This follows a period of volatility, with Bitcoin ETFs previously seeing significant withdrawals, but the market appears to be recovering.

JOBS

BITKRAFT Jobs

We’re looking for a Head of M&A who’s both professionally and personally passionate about games and interactive media to guide our portfolio companies through mergers, acquisitions, and IPOs. The person in this position will be there every step of the way, helping them connect with advisors and lock in the best deals. For those with solid M&A experience who love the gaming world, apply here !

Our Portfolio is Hiring!

Our portfolio companies are currently looking to fill roughly 275 positions in a variety of functions. If you’re on the hunt for something new, or know someone who is, take a look at our database of open roles . Be sure to follow our very own Brooke Grabrian l SPHR and Amanda Timm for real-time announcements.

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Disclosures

Specific investments described herein do not represent all investment decisions made by BITKRAFT Ventures. The reader should not assume that investment decisions identified and discussed were or will be profitable.? Specific investment advice references provided herein are for illustrative purposes only and are not necessarily representative of investments that will be made in the future.

All material risks of investment

Not an offer: This document does not constitute advice or a recommendation or offer to sell or a solicitation to deal in any security or financial product. It is provided for information purposes only and on the understanding that the recipient has sufficient knowledge and experience to be able to understand and make their own evaluation of the proposals and services described herein, any risks associated therewith and any related legal, tax, accounting or other material considerations. To the extent that the reader has any questions regarding the applicability of any specific issue discussed above to their specific portfolio or situation, prospective investors are encouraged to contact BITKRAFT Ventures or consult with the professional advisor of their choosing.

Third Party information: Certain information contained herein has been obtained from third party sources and such information has not been independently verified by BITKRAFT Ventures. No representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by BITKRAFT Ventures or any other person. While such sources are believed to be reliable, BITKRAFT Ventures does not assume any responsibility for the accuracy or completeness of such information. BITKRAFT Ventures does not undertake any obligation to update the information contained herein as of any future date.

Forward-looking statements: Certain information contained herein constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events, results or actual performance may differ materially from those reflected or contemplated in such forward-looking statements. Nothing contained herein may be relied upon as a guarantee, promise, assurance or a representation as to the future.

Past Performance: There is no guarantee that the investment objectives will be achieved. Moreover, the past performance is not a guarantee or indicator of future results.