Gamefam Raises $25 Million to Bring Brands into the Metaverse

West Hollywood-based video game studio Gamefam has raised a $25 million Series A round to fuel its business of linking Roblox game developers to brands looking to advertise to Generation Z audiences.

Konvoy Ventures, a VC firm based in Denver, led the round and was joined by investors Play Ventures, Makers Fund, Bessemer Venture Partners and Galaxy Interactive.

Since launching in 2019, Gamefam has released more than 30 live games on the popular Roblox platform, and now claims an audience of 6.5 million daily users in the U.S. and 15 million worldwide. The studio said the new funding has helped grow its headcount to more than 100 employees.

A key part of Gamefam’s model is allowing major companies like Disney and Mattel, as well as larger game publishers like Sony and Ubisoft, to integrate their brands into advertising experiences that fit within a game. These so-called “custom branded experiences” are becoming more popular in the gaming world, especially as platforms like Roblox promise a more immersive metaverse experience for users.

Branded experiences in video games also tend to focus less on the traditional, hardcore gaming crowd and more on a wider general audience drawn to virtual entertainment experiences. Music experiences, in particular, have proven particularly viable; rapper Travis Scott’s live virtual concert in “Fortnite” reached over 12 million viewers, while a Roblox performance by rapper Lil Nas X drew 36 million attendees. Sony’s music division inked a deal with Roblox last year to bring more of its artists onto the platform.

Gamefam CEO Joe Ferencz noted that although the company makes money from brand partnerships, it is still focused on serving individual creators looking to publish games on third-party platforms like Roblox.

“Gamefam is a company started by creators to support creators,” Ferencz said in a statement. “We have been able to bring together experts from AAA gaming as well as some of Roblox's top native talent to drive successful revenue growth for our games, create opportunities for brands, and build new franchises.”