UAE Venture Capital Firm Invests $1 Million in TZ APAC to Boost Web3 Gaming on Tezos Blockchain
A venture capital firm based in the United Arab Emirates has announced a $1 million investment in TZ APAC aimed at enhancing the landscape of Web3 games on the Tezos blockchain. Despite the growing appreciation for blockchain-based gaming concepts the sector has experienced lower adoption rates compared to traditional gaming platforms. However investor interest in Web3 games remains robust with continuous financial commitments to their development and improvement.
Quantix Capital has revealed its strategic alliance with TZ APAC a registered entity dedicated to overseeing games built on the Tezos blockchain. The collaboration will not only provide financial backing but will also offer mentorship from the venture capital board and industry experts from both organizations. The managing director of Quantix Capital emphasized that this investment extends beyond mere financial contributions stating “Our investment is not just financial. It’s a commitment to nurture creativity and innovation among builders who are shaping the future of gaming and interactive entertainment.”
Recent reports have indicated that while blockchain gaming is gaining traction the growth of this sector is still in its infancy with around 80 percent of the global population yet to explore these games. The blockchain gaming market is projected to experience significant expansion forecasting an increase from $10.2 billion in 2024 to $304.3 billion by 2033 representing a compound annual growth rate of 67.7 percent.
Despite substantial funding in the industry certain challenges persist that hinder the growth of Web3 games. Cryptocurrency products and services are becoming increasingly popular and major venture capital firms are investing heavily in centralized startups which have raised significant funds. Conversely investments in decentralized gaming and NFT projects have seen a decline in financial support.
In the third quarter of 2024 blockchain games raised $128 million a decrease of 56 percent compared to the $296 million raised in the previous quarter according to research from Blockchain Gamer. Additionally average investment rounds have shrunk with notable instances including NPC Labs raising $18 million for their gaming application scaling network.
Data from DappRadar reveals a staggering 90 percent decline in funding for Web3 games in Q3 2024 when compared to the previous quarter. Funding in Q2 2024 amounted to $1.1 billion while the third quarter only generated $110 million. Rootdata identifies Azra Games as the leader in funding within the Web3 gaming category followed by companies such as Parallel and Gunzilla Games.
In the pre-seed category smaller startups also secured funding with Ginger Joy raising $1.26 million GolfN obtaining $1.3 million and XOOB receiving $1.6 million. While established names like Axie Infinity and Sandbox continue to assert their dominance in the Web3 gaming space the overall slow pace of growth raises concerns about the sector's future trajectory.
Industry experts acknowledge the gradual evolution of the Web3 gaming landscape is worrisome yet they also suggest that this cautious progression could validate the adage “slow and steady wins the race.” As the sector continues to navigate its challenges the collaboration between Quantix Capital and TZ APAC may serve as a crucial stepping stone in fostering innovation and expanding the reach of blockchain gaming.
