Drake Star is an award-winning global tech investment bank that has completed over 500 transactions since 2003. The company focuses on mergers & acquisitions and corporate finance services worldwide in Consumer & Retail Technology, Digital Media, Digital Services, FinTech, HR Tech, Industrial Tech, Mobility & Sustainability, and Software/SaaS.

Drake Star

Drake Star is an award-winning global tech investment bank that has completed over 500 transactions since 2003. The Drake Star team of over 100 senior professionals across offices in New York, London, Paris, Munich, Los Angeles, Berlin and Dubai* focuses on mergers & acquisitions and corporate finance services worldwide in Consumer & Retail Technology, Digital Media, Digital Services, FinTech, HR Tech, Industrial Tech, Mobility & Sustainability and Software/SaaS.

Drake Star is the marketing name for the global investment bank Drake Star Partners Limited and its subsidiaries and affiliates. In the USA, all securities are transacted through Drake Star Securities LLC. In the USA, Drake Star Securities LLC is regulated by FINRA and is a member of SIPC. Drake Star UK Limited (FRN 942020) is an appointed representative of Razlin Ltd (FRN 730805), which is authorized and regulated by the FCA. © 2024 Drake Star Partners Limited.

*Partner Offices

𝗚𝗹𝗼𝗯𝗮𝗹 𝗚𝗮𝗺𝗶𝗻𝗴 𝗥𝗲𝗽𝗼𝗿𝘁 𝟮𝟬𝟮𝟯: 𝗥𝗲𝗰𝗼𝗿𝗱 𝘆𝗲𝗮𝗿 $𝟴𝟲 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 𝗶𝗻 𝗱𝗲𝗮𝗹 𝘃𝗮𝗹𝘂𝗲

With $86B in disclosed value for closed deals, 2023 was a record year for #gaming from a deal value standpoint, mainly due to the much-awaited closing of Microsoft’s acquisition of Activision in Q4’23. Overall, 2023 was a robust year with $20B in disclosed value of announced deals. Q4’23 saw a notable pickup in M&A deals compared to Q3, and we predict M&A activity to steadily increase again in 2024.

The Drake Star Global Gaming Report 2023 analyses the fourth quarter and full year 2023 for Gaming and #Esports and outlines what to expect for 2024. 

Highlights include:

▶️ 163 M&A deals were announced during 2023 with over $10.5B in disclosed deal value. Top deals were Savvy Games Group/PIF’s acquisition of Scopely ($4.9B), Kahoot!’s acquisition by Goldman Sachs consortium ($1.7B) and Techland’s majority acquisition by Tencent ($1.6B). 

▶️ Over $3.5B was raised in 750+ financing rounds of private companies. Mobile was the most active segment (168), followed by blockchain (159) and platform/tools (143). Top financings were VSPO ($265M), Candivore ($100M) and Second Dinner ($100M).

▶️ The most active VCs in early to late stage included BITKRAFT Ventures, Andreessen Horowitz, Play Ventures and Griffin Gaming Partners while the most active seed stage VCs were Goodwater Capital, 1Up Ventures, Sfermion and Shima Capital.

2024 Outlook

▶️ After a hyperactive COVID period (2020-22), deal activity gradually shifted back to the pre-COVID levels in 2023 and we predict M&A activity to steadily increase again in 2024.

▶️ Top buyers will likely be Tencent, Sony, Scopely / Savvy Games, Keywords and Take-Two, while ByteDance is about to sell its gaming business and Embracer will likely divest some of its studios. 

▶️ While we expect some large ticket sized M&A deals, we forecast a continued uptick in smaller to mid-size M&A deals in 2024and Private equity firms taking some of the listed companies private, attracted by the current lower valuations.

▶️ We predict a healthy amount of seed / early-stage financings and a limited amount of growth / later stage rounds. Hot segments will be AI / tools and AR / VR.

▶️ With public gaming market improving in the first half of 2024, we expect to see some of the IPO ready gaming companies to restart their going public efforts in the second half of the year.

Download the full report here: https://lnkd.in/dCRuxb4k

#games #mobilegames #mergersandacquisitions


#Payment Market Update launched today: 39% of #FinTech M&A Activity and Tripling of Deal Values in 2023 

We are pleased to publish our Payment Market update which provides an overview of key data and insights for full-year 2023, including stock price performance, key deal activity, soaring deal values, a market map of key players, and Drake Star’s outlook for 2024. 

Highlights from the report include:

⏺ Payment accounted for 39% of total FinTech M&A activity in 2023

⏺ Average deal value more than tripled in 2023 vs. 2022, reaching over $700 Million in average deal size

⏺ Strategic buyers accounted for over 70% of total Payment M&A deals in 2023

⏺ The Payment landscape is still highly fragmented (over 1,500 companies) and ripe for further consolidation

⏺ Drake Star’s 2024 Outlook including our expectations for Digital Wallets, Expansion of #BNPL, Security and Fraud Prevention, and more

Download the full report here for detailed data, stats, and key sector highlights - link in comments. 

#MergersAndAcquisitions

Podcast – Diving Into #HRTech M&A! What's going to happen to all those remote-work unicorns who raised hundreds of millions during the pandemic? What's the current state of M&A in HR Tech in 2023, heading into 2024? And when will the #IPO dam finally break and allow companies like iCIMS, Greenhouse Software, Personio and others to access the public markets?

Joel Cheesman and Chad Sowash break down all of this and much more in a deep dive conversation with Drake Star’s Jim Holzer, Managing Partner, on the “Chad & Cheese Podcast.”

This a must listen for anyone raising, selling or just surviving this turbulent market. Not only is it informative, but it is highly entertaining thanks to the provocative questions and quick wit of Chad and Cheese!

Jim Holzer on why HR Tech is such an interesting space: “It's been an area that has had a lot of growth and innovation for a long time. And you see companies of all types really being able to thrive. So from the innovative, seed stage company to the large public company, there's constantly been innovation. It's been an area where the HR Tech market, despite being influenced by the overall economy, has done quite well. And you see very active capital markets from the early stage capital, to VC, to private equity and to public markets. Very exciting space where there's always something interesting going on.”

#MergersAndAcquisitions #FutureOfWork

Full episode here: https://lnkd.in/d6yV8k4Y

🗞️ M&A 2023 Recap & 2024 Projections: Valuations, Dry powder, and Recommendations for Financing Strategies 

Our new Partner Julian Riedlbauer sat down with Alex Hofmann from German startup, investor & founder publication Gründerszene to recap 2023, and to look at the environment for founders, entrepreneurs, investors and exits in 2024 and beyond. 

Here are a few of the aspects they covered in their conversation: 

▶️ Capital-efficient companies with very good KPIs are attracting a lot of interest from #PrivateEquity investors, strategists and late-stage growth investors. We have now left behind the exaggerations of 2020 and 2021, when #valuations grew to astronomical heights far above the average values of previous years. 

▶️ Most market participants are now under pressure to conclude #transactions: Private equity funds currently have more uninvested capital – so called “dry powder” – than ever before and invested funds should return capital from share sales to their own #investors. 

▶️ Valuations will have a very wide range: Investors are already chasing after companies that are known as existing or future stars because the security of investing in a market leader or a superstar is higher, and the risk of failure is much lower. It is better to pay a premium on the valuation and have a secure #investment. 

If you want to learn more about realistic multiples, Julian’s recommendations for financing strategies, and the role of #AI, follow to the link to the full #interview (€, in German): 

https://lnkd.in/dNrgKwjr

🚀 Sports Tech outperformed other market sectors in 2023 and another strong year expected in 2024

SportsPro’s Steve McCaskill breaks down the Drake Star Sports Tech report and shares insights from Mohit Pareek, CFA, Principal, and lead author of the report. 

The article outlines our latest views on key deal activity, headline numbers, the most active industry players, and where the market is headed in 2024. 

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