Chinese gaming startups have been making significant strides in recent years, leveraging various funding strategies to fuel their growth across different stages. Let’s explore how these companies finance their seed-stage, Series A, Series B, and Series C rounds, along with some successful examples.
Seed-Stage Financing
At the seed stage, Chinese gaming startups typically raise smaller amounts of capital to validate their concepts and develop initial prototypes. Common sources of funding include:
- Angel investors (天使投资人)
- Incubators and accelerators (孵化器和加速器)
- Government grants (政府补助)
- Crowdfunding platforms (众筹平台)
Angel Investors (天使投资人)
Prominent Chinese angel investors who often support gaming startups include:
- Lei Jun (雷军) – Founder of Xiaomi
- Xu Xiaoping (徐小平) – Founder of ZhenFund
- Wang Qiang (王强) – Founder of DemoHour
These investors typically provide initial capital and valuable industry connections.
Incubators and Accelerators (孵化器和加速器)
Several incubators and accelerators in China support gaming startups:
- Innovation Works (创新工场)
- Legendstar (联想之星)
- Tsinghua Science Park (清华科技园)
- Huailongsen International Enterprise Incubator (怀龙森国际企业孵化器)
These programs offer mentorship, resources, and initial funding to help startups grow.
Government Grants (政府补助)
The Chinese government actively supports the gaming industry through various grants:
- Hangzhou, a tech hub in Zhejiang province, has pledged 100 million yuan (约1400万美元) in annual funding to support video gaming and esports.
- The national government is setting up a venture capital guidance fund that aims to mobilize 1 trillion yuan (约1380亿美元) from social capital to support technology startups, including those in the gaming sector.
Crowdfunding Platforms (众筹平台)
Chinese gaming startups also utilize crowdfunding platforms to raise capital:
Additionally, global platforms like Indiegogo and Kickstarter have established offices in China to help domestic manufacturers reach overseas markets.
Series A Financing
Series A funding allows startups to scale their operations, refine their products, and expand their user base. Chinese gaming startups often raise between $5 million to $15 million at this stage. Key investors include:
- Venture capital firms
- Corporate venture arms
- Strategic industry partners
Some prominent Chinese VC firms investing in gaming startups include:
- Tiantu Capital (天图投资)
- ZhenFund (真格基金)
- IDG Capital (IDG资本)
- Matrix Partners China (经纬中国)
- GSR Ventures
These firms typically invest in seed, Series A, and later rounds, with investments ranging from 2 million to 20 million dollars.
A successful Chinese gaming startup that recently completed its Series A round is Fireverse, a Hong Kong-based startup that raised $2.5 million in February 2025, focusing on AI, gaming, and blockchain.
Website: https://web3.fireverseai.com/
Series B Financing
Series B rounds typically involve larger investments, allowing startups to expand their market reach and develop new products. Funding at this stage often ranges from $20 million to $50 million. Investors may include:
- Larger venture capital firms
- Private equity firms
- Strategic corporate investors
While not specifically a Series B round, VSPN (Versus Programming Network), an esports total solutions provider, raised nearly $100 million in a Series B round led by Tencent Holdings in October 2020. This example showcases the scale of funding available for successful gaming-related companies in the later stages.
Series C Financing
Series C and beyond are typically for well-established startups looking to dominate their market or expand internationally. These rounds can exceed $100 million. Investors often include:
- Late-stage venture capital firms
- Private equity firms
- Investment banks
- Strategic corporate investors
Successful Chinese Gaming Startups
Here are some notable Chinese gaming startups that have successfully raised funding:
- Tencent Holdings Limited: A global tech giant that dominates the gaming market with popular titles like Honor of Kings and PUBG Mobile.
Website: https://www.tencent.com/en-us/ - NetEase, Inc.: A leading internet technology company with a strong presence in gaming, known for its self-developed games.
Website: https://www.neteasegames.com/ - 37 Interactive Entertainment: Focuses primarily on mobile gaming with a growing international presence.
Website: https://www.37.com/ - Beijing Kunlun Technology Co. Ltd.: An internet company active in mobile gaming, focusing on casual and mid-core games.
Website: https://www.kunlun.com/ - Perfect World Games: A developer and publisher with a strong focus on MMORPGs and high-quality online games.
Website: https://www.perfectworld.com/
Additional Financing Methods to finance Chinese gaming startups.
Equity Crowdfunding
Equity crowdfunding has gained traction in China, allowing startups to raise funds from a broader pool of investors. Platforms like JD Dongjia (京东东家) and Renrentou (人人投) enable gaming startups to access capital from individual investors.
Corporate Partnerships
Many Chinese gaming startups form strategic partnerships with larger tech companies or established gaming firms. These partnerships can provide not only funding but also valuable resources, distribution channels, and industry expertise.
Chinese gaming startups benefit from a thriving ecosystem that includes supportive government policies, a large domestic market, and a growing pool of experienced talent. The diverse range of funding options available, from angel investors and government grants to venture capital and equity crowdfunding, provides ample opportunities for startups to secure the necessary capital at each stage of their growth.
As the gaming industry continues to evolve, with trends like mobile gaming, esports, and blockchain integration gaining momentum, Chinese gaming startups are well-positioned to capitalize on these opportunities. The robust financing landscape enables them to drive innovation, expand their market reach, and compete on a global scale.
The success stories of companies like Tencent, NetEase, and emerging startups like Fireverse demonstrate the potential for growth and success in the Chinese gaming industry. As the sector continues to mature, we can expect to see more innovative startups emerge, leveraging the diverse funding options available to bring their creative visions to life and shape the future of gaming both in China and globally.
Damalion supports gaming startups to attract international investors through their pre-seed, seed, series A, B, C with possibility for buy-out and other options. Please contact your Damalion expert now.
