Video games have evolved from the passion of curious and dedicated young individuals who couldn't peel their eyes away from computers during high school and university years, transitioning from child's play to mainstream culture over the past 30 years.
Despite the unawareness of nongamers, it has indisputably become the largest entertainment industry by a wide margin.
In 2022, it generated a staggering $182.9 billion as a whole, surpassing the combined total of the music and film industries. Consequently, the emerging gaming sector has become highly attractive for investors, even though the world is grappling with multiple challenges spearheaded by inflation and high-interest rates.
Even though Türkiye has relatively small game studios, their ability to produce successful stories maintains its allure for investors, presenting a compelling opportunity to diversify risks among numerous early-stage game startups.
Undoubtedly, over 50% of the industry's revenue originates from mobile games, indicating that players' attention remains fixated on mobile screens. Despite a decline in time spent, it underscores the enduring popularity of mobile gaming. Console games follow at 29%, while PC games stand at 21%.
However, the measurement might be somewhat misleading, as some mobile "games" closely resemble gambling more than traditional video games. Hence, while mobile games may appear more significant to investors focused on video games, they are also guided by a different dynamic from the rest of the industry, partially incorporating online gambling.
Through mergers and acquisitions or the influence of a few major distributors, the industry has transformed into one where a handful of large companies increasingly dominate. While the industry leaders shape the direction, the innovative breakthroughs of smaller entities contribute significantly.
Investors find themselves needing knowledge not only about the giants steering the gaming industry but also about Microsoft, Tencent, Sony and other competitors, acknowledging that gaming is a crucial yet relatively small part of their entire business.
The industry has recently embraced aggressive revenue-generating tactics, including downloadable content (DLC), microtransactions, loot boxes and more. While this has led to increased earnings, it has also sparked backlash and debates, questioning the sustainability of the current trajectory of revenue, production costs and profit margins. Nevertheless, the industry is projected to grow at a compound annual growth rate (CAGR) of 13.4% until 2030, according to Grand View Research.
Investments in the Turkish gaming sector show no signs of slowing down as Boğaziçi Ventures announces its investment in the new venture, Frozen Pawn, which is aiming for global expansion.
The latest deal reaffirms one of Türkiye’s leading investment firms’ contributions to the technology and entrepreneurship world.
Facilitated through the BV Growth fund, the investment seeks to accelerate the international success of Frozen Pawn's talented team by supporting its potential for expansion and robust business model in the global market.
Utilizing the BV Growth fund, Boğaziçi Ventures continues its strategy of investing in early-stage technology-focused ventures with the potential to reach a broad user base in international markets and managed by competent teams.
The company directs its portfolio toward innovative solutions in various fields, including gaming, Web 3.0, financial technologies, retail innovations, and health and education technologies.
Frozen Pawn is a rapidly growing game development company managed by a young and dynamic team with roots in Istanbul's gaming industry. Its team excels in developing both single-player and multiplayer games on mobile and PC platforms, employing various technologies for innovative projects.
Burak Balık, managing partner of Boğaziçi Ventures, said the investment in Frozen Pawn marks a strategic move for both the company and Türkiye’s gaming sector.
“Boğaziçi Ventures, with its strategy of focusing on technology and innovative solutions, aims to contribute to moving Türkiye’s gaming sector toward a brighter future on the international stage. We have high confidence in the team's innovative approaches, and we are excited to support them both financially and strategically for their growth. We are thrilled to contribute to the growth and success of Frozen Pawn in the industry,” said Balık.
Frozen Pawn, with its mid-core game "Heist Guyz," offers players a unique gaming experience combining strategy and quick thinking. Characterized by moderate difficulty, it is a multiplayer tactical shooter with an exciting heist theme. Collaborating with UGC90, another portfolio company of the BV Growth fund, Frozen Pawn focuses on user-generated content on platforms like Fortnite, Minecraft, and Roblox.
Aykut Şahin, co-founder of Frozen Pawn, said the investment would help them accelerate their activities in the UGC gaming space, harboring significant opportunities, and increase their global market share.
“We are leveraging the advantages of being one of the first studios in Türkiye to operate in this field, especially during a period when studios specializing in Fortnite Creative are emerging worldwide. Therefore, with the support of Boğaziçi Ventures, we strive to become one of the leading companies in the UGC gaming space, especially when the competition in Fortnite Creative is not yet very high."
Adding to this, Mustafa Enes Bilgiç, another co-founder of Frozen Pawn, said: "The investment will not only benefit BV and Frozen Pawn but will also contribute significantly to the industry with the firsts we achieve and the innovative approaches we bring to existing game genres as Frozen Pawn."
In a gathering that convened the entrepreneurial ecosystem in Istanbul, the Take Off Entrepreneurship Summit honored ventures inspiring the future with innovative ideas. This year marked the sixth edition of the summit, bringing together all stakeholders through a comprehensive two-day program.
The summit has successfully evolved into the central meeting point for the ecosystem. With a total of 200 local and international ventures participating, the summit received 1,252 applications from 43 countries for evaluation.
Attended by over 100 investors, the event hosted ventures in pre-seed, early-stage, and growth stages. Its mission is to transform Istanbul into a hub for international entrepreneurs and investors, covering ventures in areas such as environment and energy, health and sports, agriculture, education, space and defense, finance, logistics, and smart city technologies.
From valuable ventures and Türkiye's high-tech firms to a broad partner network ranging from international investors to mentors and technoparks, the summit has established itself as a unique collaboration platform for entrepreneurs.
A prestigious award ceremony recognized local and international ventures in different categories, with contributions from the T3 Foundation and the Take Off Entrepreneurship Summit partners. Ventures received awards in the form of investments, grants, and special acceleration programs.
Co Print, a venture in the growth stage working on 3D printing technologies and ranked among the top 10, received a $200,000 investment evaluation award from the T3 Foundation. Syntonym, a venture operating in artificial intelligence, received a $200,000 investment evaluation award from the Ministry of Industry and Technology.
Aselsan, one of Türkiye’s pioneering defense and technology companies, rewarded ventures that secured a place in the top three in the early-stage category. Invamar topped the list and was granted TL 500,000, followed by Hyperever with TL 300,000 and Salty Energy with TL 200,000.
Esas Holding presented the Best Disaster Management Technology Venture award, valued at $10,000, to Kozalak Yangın in the early-stage category.
Turkish carmaker Ford Otosan awarded the Best Female Entrepreneur prize, worth TL 150,000, to From You Eyes, a venture providing quick and high-quality visual explanations for visually impaired users.
One of the primary strengths of educational technology ventures lies in their significant societal impact on the field of education, with MentalUP serving as a standout example.
The Turkish educational platform has expanded its global impact by providing exercises that support children's cognitive skills, including attention, memory, and problem-solving. Additionally, it offers educational and scientific content that enhances physical competencies like muscle strength, balance and overall physical development.
A graduate of one of Türkiye’s leading telecommunications and technology companies Türk Telekom’s startup acceleration program, PILOT, MentalUP is supporting more than 15 million users in more than 120 countries, according to 2022 data.
The platform has received recognition for its pedagogical contribution to children's learning processes, holding the "pedagogical product supporting children's learning processes" certificate from the Finland-based Education Alliance Finland. Furthermore, it earned the "Best Educational Application for families" award from the Mom’s Choice Award in the United States.
MentalUP's primary user base comprises children aged 4 to 13, with over 150 cognitive exercises and more than 210 physical exercises available. The positive impact of the venture on children's cognitive and physical development has been scientifically proven through studies conducted by the University College of London in the United Kingdom.
A distinctive feature of MentalUP is the gamified design of all exercises, ensuring that children perceive the platform not as an additional responsibility or homework but as an enjoyable experience. They find it entertaining and derive pleasure from playing the educational games.
Emre Özgündüz and Reşit Doğan, founders of MentalUP, which also secured investment from TT Ventures, the venture capital arm of Türk Telekom, said they embarked on their journey in the education world by initially creating educational exercises for gifted children.
“However, over time, we realized that every child could unlock their potential with the right education. Following the guidance of our expert advisors, we began developing an application that all children could benefit from,” they said.
“Our initial goal was to allow every child to enjoy educational exercises tailored to their cognitive skills and development, presented in the form of games. Those using personal devices with iOS and Android operating systems can download the MentalUP mobile application for free from application markets (App Store and Play Store) and start using it immediately."
