Information on the Target

Space Rock Games is a newly established gaming studio co-founded by a team of five passionate individuals: Zsombor Pirok, Kieran, Vanessa, Varun, and Mitch. This group, having studied together at Media Design School, has cultivated a close-knit bond that enhances their collaborative efforts. Zsombor, a Hungarian native now based in New Zealand, leads the team with a vision centered on ethical game development and social gaming, aspiring to create gaming experiences that foster connections among players. Their debut title, 'Criminals Within,' aims to break away from industry norms surrounding excessive working hours, instead promoting a healthier work-life balance.

Industry Overview in New Zealand

The gaming industry in New Zealand has witnessed a remarkable growth trajectory, particularly influenced by post-COVID trends. With an annual market value exceeding $250 billion worldwide, video games have emerged as a dominant segment within the global entertainment sector. During the pandemic, the increased demand for indoor leisure activities significantly accelerated the adoption of gaming as a means for social interaction, culminating in a 20% growth for the Video Game Industry (VGI) in 2020 alone.

Specifically in New Zealand, the Game Developers Association (NZGDA) reported a staggering revenue growth of 42% in 2020, followed by a 30% increase in 2021, resulting in approximately $280 million in total revenues. This robust expansion underscores the vitality and potential of the local gaming ecosystem, providing fertile ground for new studios like Space Rock Games.

Comparatively, success within the gaming sector is measurable through sales figures, with titles ranging from mediocre to blockbuster achieving sales from 500,000 to 5 million copies. Such performance translates to substantial revenues, with potential returns that align with venture-scale expectations. This favorable dynamic encourages continued investment in the region's gaming landscape.

The Rationale Behind the Deal

The decision to invest in Space Rock Games stemmed not only from the team's compelling vision but also from the overall growth momentum within the gaming sector. As investor interest in video games surges, backed by a robust performance history, there exists an opportunity for substantial returns. The founders’ commitment to ethical game design further enhances the studio's appeal, making it an attractive investment for Hillfarrance as they delve into early-stage game development.

Information About the Investor

Hillfarrance has positioned itself as a prominent investor in emerging sectors, with an increasing focus on the gaming industry. The firm's ethos emphasizes supporting founders with strong visions and ethical business practices. This investment in Space Rock Games represents Hillfarrance's inaugural entry into gaming studio investments, signaling its intent to allocate a significant portion of future fund resources toward this burgeoning market, enhancing its portfolio with promising and innovative projects.

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Dealert believes that the investment in Space Rock Games has the potential to yield positive returns based on several factors. Firstly, the expertise and strong interpersonal dynamics of the founding team can enhance creative output and operational efficiency. Secondly, the ethical approach to game development reflects a growing consumer trend that favors companies with socially responsible practices, which could further attract a loyal player base.

Moreover, considering the impressive growth figures reported by the New Zealand gaming sector, Space Rock Games is strategically poised to benefit from an expanding market. The anticipated success of their cooperative game 'Criminals Within' could not only affirm their talent but also pave the way for sequels and additional content, driving long-term value creation.

Ultimately, Hillfarrance’s backing, combined with the team’s unique development philosophy and market potential, suggests that this deal could indeed be a strategically advantageous investment in the evolving gaming landscape.

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