
Krafton
Description
Krafton, the South Korean gaming giant renowned for titles like PUBG: Battlegrounds, has strategically diversified its operations to include venture capital investments. While primarily a game developer, Krafton has established itself as an active investor, particularly in the burgeoning interactive entertainment and technology sectors. This move is part of a broader strategy to cultivate a vibrant ecosystem that complements its core gaming business and identifies future growth opportunities.
A significant portion of Krafton's investment activity has been concentrated in the Indian market. In 2021, the company publicly announced a substantial commitment of $100 million dedicated to fostering the Indian interactive entertainment ecosystem. This initiative targets a diverse range of companies, including those in gaming, esports, game streaming, audio content, and social platforms. Krafton's investment thesis often revolves around identifying promising startups that can leverage its industry expertise and global reach, thereby contributing to the development of a robust digital entertainment landscape.
Krafton typically participates in early to mid-stage funding rounds, such as Series A. Their first cheque sizes demonstrate a notable range, reflecting the varied needs and potential of the companies they back. For instance, Krafton invested $22.5 million in Rooter, an Indian game streaming and esports platform, showcasing their capacity for larger strategic stakes. On the other end of the spectrum, they have also made smaller, yet impactful, investments such as $1 million in One Impression, an influencer marketing platform. This flexibility allows them to support a wide array of ventures, from nascent startups to more established, rapidly scaling businesses.
Overall, Krafton's investment arm functions as a strategic enabler, seeking to build strong partnerships and foster innovation within the digital entertainment space. Their investments are not merely financial but are often accompanied by strategic guidance and potential collaborations, aiming to accelerate the growth of their portfolio companies and reinforce Krafton's position as a key player in the global interactive entertainment industry.
Investor Profile
Krafton has backed more than 27 startups, with 9 new investments in the last 12 months alone. The firm has led 13 rounds, about 48% of its total and boasts 5 exits across its portfolio.
Investment Focus Highlights
- Concentrates on Series A, Seed, Series B rounds (top funding stages).
- Majority of deals are located in India, United States, South Korea.
- Strong thematic focus on Gaming, Apps, Software.
- Led 8 rounds in the past year.
- Typical check size: $1M – $22.5M.
Stage Focus
- Series A (33%)
- Seed (33%)
- Series B (11%)
- Corporate Round (7%)
- Series Unknown (7%)
- Series D (4%)
- Series C (4%)
Country Focus
- India (37%)
- United States (33%)
- South Korea (11%)
- Cyprus (7%)
- Norway (4%)
- China (4%)
- France (4%)
Industry Focus
- Gaming
- Apps
- Software
- Online Games
- Video Games
- Audio
- Sports
- Computer
- Information Technology
- Music
Frequently Asked Questions
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