TEL AVIV: VGames on Wednesday launched the first games-focused investment fund in Israel, with commitments of over US$30 million and a target to raise US$40 million.
The fund, which will invest mostly in early-stage game studios in Israel and Eastern Europe, was founded by Eitan Reisel, formerly head of Google Games in Tel Aviv.
Israel and Eastern Europe have become important sources for game studios, with 2020 projected revenue of over US$4 billion in Israel and US$5 billion in Eastern Europe, the company said.
Israel is home to game developers such as Playtika and Plarium while Eastern Europe has thousands of studios such as Huuuge Games, Ten Square Games, Nordeus and Vizor.
The fund has invested in four game studios, including InnPlay Labs and Brain Games, and plans to invest in another 15-20. The fund's anchor investor is Israeli venture capital fund Viola Ventures.
(Reporting by Tova Cohen; Editing by Ari Rabinovitch)