Discussing Gambling: Ixia Venture Capital Fund and Studio Association
Ixia Capital and the Future of Gaming, Esports, and Digital Assets in Emerging Markets
In an exclusive interview with Talk Gambling, Mona Motwani, founder and CEO of Ixia Capital, discusses the venture capital fund's cutting-edge venture capital studio model and its strategic approach to emerging markets.
The birth of Ixia Capital
Motwani attributes the inception of Ixia Capital to her extensive experience in the gaming and digital asset sectors, particularly in rapidly developing markets. Recognizing a significant gap in the market for specialized investment vehicles with a hands-on approach, Ixia Capital was born.
The venture capital fund's unique VC Studio model allows for greater control over development and direction from the outset, distinct from traditional venture capital models. This model was idealized in light of impressive growth trajectories observed in target markets such as Africa, the Middle East, and India.
A data-driven approach
Motwani highlights the extraordinary potential within these markets, citing the massive and growing base of active gamers in Africa and India. For example, there are nearly 185 million active gamers in Sub-Saharan Africa alone, with a market size of $6.2 billion, and 568 million gamers in India.
This data-driven approach allows Ixia Capital to identify specific market gaps and create projects that not only address these gaps but also leverage the firm's extensive network and expertise in gaming and digital assets. The team is excited about opportunities in game development, esports, and associated tech startups across the target regions.
Navigating regulatory landscapes
Motwani emphasizes the importance of maturing regulatory environments in Ixia Capital's target markets, such as the UAE's comprehensive crypto regulations and India's recognition of esports as a multi-sport event. Ixia Capital is poised to navigate these changes and take a proactive role in shaping the future of gaming and digital assets in these dynamic markets.
Focus areas for investment
At Ixia Capital, the investment thesis centers on specific segments within gaming, esports, and digital assets in the Middle East, Africa, and India, where growth potential is highest. Mobile technology is considered paramount, with a focus on cloud gaming solutions to provide high-quality gaming experiences without requiring high-end hardware.
Esports shows promise, having seen a 20% increase in hourly traction following the COVID-19 pandemic, and the team is particularly excited about developments in the Middle East, such as the recent Dubai Esports and Games Festival.
Blockchain gaming and digital assets offer unique opportunities, with Ixia Capital working on projects that create sustainable economic systems using blockchain technology for instant, verifiable payouts.
Game development studios with a strong understanding of local market nuances also attract interest. With increasing demand for culturally relevant content in regions like the Middle East, localized game development presents promising avenues for innovation.
The Indian market
India is viewed as a hidden gem in the iGaming sector due to its massive gaming market, growing rapidly thanks to high smartphone penetration, affordable internet, and government support for technological infrastructure and regulatory evolution.
In addition, there is a large, young, tech-savvy population with increasing disposable income, a talented pool of technology and game developers, and deep cultural connections to gaming through traditional games. This combination makes India an attractive market for investment.
Strategies for tapping into the Indian market
The Ixia Capital team employs a strategic and methodical approach to the Indian market, leveraging the VC Studio model to create projects tailored to local preferences. The focus lies on mobile-first gaming solutions, locally relevant content, and platforms designed for variable internet connectivity.
A robust compliance framework, relationships with regulatory bodies, and active participation in industry discussions ensure projects adhere to India's evolving regulatory landscape. With a phased expansion strategy, Ixia Capital targets regions with high digital penetration, followed by tier 2 and tier 3 cities using localized approaches specific to each region.
By taking a hands-on, adaptable, and innovative approach to emerging markets like India, Ixia Capital hopes to create value within the gaming, esports, and digital asset sectors.
- Ixia Capital, with its expertise in gaming, digital assets, and technology, is actively seeking investment opportunities in the promising Indian market, tailoring mobile-first gaming solutions and locally relevant content to cater to the growing demand for culturally relevant content.
- As part of its strategic approach to harnessing the potential of emerging markets, Ixia Capital focuses on game development studios with a strong understanding of local market nuances, such as blockchain gaming and digital assets, esports, and game development platforms that collate with variable internet connectivity.
