The LVP team has been investing in game startups in Europe for many years now. Many people (especially potential LP's) have asked us over the years why games and why Europe.
Lets talk about why games first. LVP focuses on the game sector because we understand it and we have 70+ years experience amongst the 3 partners. We know it and have relationships that cannot be disrupted. But more importantly for investors, there has been $33.8 billion of value created just in the last 3 years globally across the game sector from acquisitions or IPO's.
Now that you understand that then why Europe? Well, we live here and that is where we want to spend our time. Oh and Europe just happens to have created the most value of all the regions globally in the last 3 years. During that time, there was $16.4 billion of value created by game companies in Europe vs $13.4 billion in Asia vs $4 billion in North America. So in relative terms Europe outperformed Asia by 22% and 4x better than North America. There are 4 key deals that drove Europe's performance: King IPO, Supercell (majority acquired by Softbank), Mojang (acquired by Microsoft) and NaturalMotion (acquired by Zynga). Our team was fortunate to be investors in Supercell and NaturalMotion.
Our strategy of investing in the game sector in Europe is contrarian to a normal tech fund in Silicon Valley but the facts speak for themselves. And the strategy is working as our returns have been incredible.