Valencia has become the entrepreneurial ecosystem that attracted the most investment in Gaming/Entertainment startups in 2023. Of the €26.8 million invested in Spain last year by venture capital in this sector, over 90% went to Valencian tech companies. According to the Bankinter Foundation’s Startup Observatory, Valencia’s entertainment and video game industry amassed €24.2 million in investment last year.
This achievement is not due to a single large investment round that distorted the sector’s reality. Specifically, out of the eight investment operations in Gaming/Entertainment startups that took place in Spain during 2023, three were led by Valencian startups: Voicemod, Fourvenues, and Yuvod.
Moreover, this isn’t just a fluke of a good year, as Valencia is tied with Madrid as the top national ecosystem in terms of accumulated investment in Gaming/Entertainment startups from 2018 to the present, totaling €41 million.
With these impressive numbers and a specialized, experienced production network, Valencia has launched a plan to become a global powerhouse in the video game sector: ‘Valencia Game City‘.
The Land of Streaming, Avatars, and eSports
Valencia aims to make its local video game and eSports industry, already the leader in Spain as shown by the investment figures, a global reference. Through the ‘Valencia Game City’ initiative, the city intends to position itself and its companies on the global stage.
The city wants to leverage its expertise in this field with a strategy that increases investment and talent, whether through recruitment or training. Paula Llobet, Councilor for Tourism, Innovation, and Investment Attraction, described ‘Valencia Game City’ as a “strategic project for the city.”
Llobet revealed that “30 companies have initially joined this project, and we expect to reach 60 companies next year.” Additionally, “three international companies are already setting up in La Harinera, and we hope to welcome many more soon.” This building will be the headquarters of ‘Valencia Game City’.
A broad network of agents, including educational entities, industry professionals, eSports clubs, and event organizers, will form working groups to enhance Valencia’s visibility and recognition as a leading ecosystem for the Gaming industry.
Schools, Developers, and Gaming Events in Valencia
‘Valencia Game City’ is a future-oriented initiative built on a solid local ecosystem that has already created a successful present with its own resources. This success is undoubtedly due to the work of Valencia’s companies and professionals who are already internationally renowned in the Gaming world:
Talent acquisition involves two variables: the ecosystem’s ability to attract existing talent, influenced by factors such as the city’s quality of life and professional development opportunities, and the ability to train new talent.
Valencia strongly promotes both aspects. Specifically, in talent training for Gaming, it excels through ESAT (Escuela Superior de Arte y Tecnología). This specialized training center is recognized as the best video game school in Spain and one of the most prestigious in the world, according to the Global Association for Media Education (USA).
In a ranking by this prestigious organization, considering the professional trajectories of graduates and the projects they complete during their training, ESAT is the top video game developer school in Spain, #4 in Europe, and #7 in the world in 2023.
The best festivals, content, and eSports and Gaming competitions are designed in Valencia by Encom. The company is highly specialized in this industry and manages leading Gaming brands through content creation and experiences.
For 2024, their previous event ‘DreamHack‘ has evolved into OWN (Open World Now), a festival that combines video games, eSports, music, art, fashion, sports, and emerging technologies. It will be held at Feria Valencia from July 4 to 7.
OWN will feature gaming areas for all audiences, with open tournaments for over thirty of the most popular video game titles. There will also be a live day of the League of Legends Super League and the final of the national Valorant league. Additionally, it will host the first national eSports league in VR and the first global phygital competition league, a discipline combining video games with physical sports, in collaboration with the Valencia Game City cluster.
The acquisition of the Valencian studio elite3d by the American company 2K resulted in 2K Valencia, specializing in 2D and 3D graphic design for video games by the American giant 31st Union, a 2K development studio.
Both companies had collaborated on successful titles like Call of Duty and Crash Bandicoot, prompting the American company to explore purchasing the Valencian firm, which was completed in 2021. As a result, Valencia is now one of the locations where 2K operates, a major player in the video game world and a brand owned by Take-Two Interactive Software, listed on Nasdaq.
The Valencian startup has developed a sophisticated real-time voice modulator for online games. Voicemod was a key player in one of the main investment rounds in our ecosystem last year, with a Series A operation of €14 million.
In addition to the modulator, Voicemod integrates various audio solutions like Voicelab (a creator of custom voice filters) and Soundboard (to use a sound effect at a specific moment during an online game).
It is one of the most powerful voice modulators on the market and integrated with leading content creation or video game streaming platforms like Twitch.
If it’s true that learning through play is effective, Kokoro Kids holds the key for young children to unlock their full potential.
This eLearning platform combines different games to stimulate emotional and cognitive intelligence in children aged 2 to 6. This age is considered the peak period for sensitivity and brain plasticity for acquiring new skills and knowledge. Kokoro Kids’ games, videos, and audiobooks stimulate memory, attention, reasoning, and emotional intelligence.
Recently, Kokoro Kids announced a funding round of over €2 million, with LEGO among the investors.
Among its founding team is Carles Pons, a Valencian entrepreneur with extensive experience in video game development who was part of one of the largest exits in our ecosystem with the sale of Akamon.
This Valencian software development company’s website states: “In 2015, we sold our startup for €27 million. Since then, we’ve been helping entrepreneurs and companies apply technology and Artificial Intelligence to their projects.”
Presumably, the mentioned operation refers to the sale of Akamon, as part of NoSpoon Lab’s founding team also participated in Akamon back then.
Regardless of its past, the company’s present is highly innovative. All its projects have an AI component, and they have collaborated in developing successful products for Kokoro Kids, the Valencian PlayJoy (Best Gaming Startup 2022), and their own title Play&Go, which applies gamification dynamics in various fields (Tourism, Leisure, Education…) through Geolocation and Augmented Reality.
This Valencian software development company specializes in immersive content. They have produced experiences for innovative devices like Apple Vision Pro or Meta Quest and created metaverses for the Euroleague basketball or the city of Valencia.
In Gaming, their spin-off Quasar Interactive is working with Sony Interactive Experience and collaborating with Lanzadera to develop Virtual Reality video games, including a horror title for PS4 VR: Do Not Open.
These ‘Olympic Games of Motor Sports’ organized by the FIA (Federación Internacional del Automóvil) will be held in Valencia from October 23 to 27. Among the various categories, two are linked to eSports, with competitions in the GT and F4 modalities.
Valencia’s international tech event, VDS, will again feature a dedicated Gaming area this year, as it did in 2023.
With the global projection VDS has gained over its various editions, it’s an excellent opportunity to showcase the potential of Valencia’s video game industry and create synergies between local players and international attendees who visit Valencia for VDS each year.
Additionally, the VDS Startup Competition (the ‘pitch battle’ where startups from around the world compete) will include a Media & Entertainment category this year, open to all gaming sector startups.
A large and active community is key for innovative ecosystems to thrive, and in gaming, it’s common for work and leisure to merge. Valencia, being a leading video game industry in Spain, is no exception and has one of the most talented and thriving communities.
One of its meeting points is the Valencia Indie Summit, an international event that celebrates its seventh edition this year, bringing together over 600 fans, creators, and industry agents.
From May 16 to 18 at Las Naves, video game industry professionals will engage in workshops, round tables, exhibitions, and will be honored with the Valencia Indie Awards. These awards are given by an international panel of experts, including developers, creators, and journalists who will analyze the best games in categories like PC, console, mobile, or the best designs, narratives, soundtracks, and arts. The highlight will be awarding the best game made in Valencia.
