Digi-Capital, a digital investment bank, released a new report. According to the report, many venture capital investors "have exited the games market completely." The result was an investment supply and demand mismatch, said Tim Merel, Digi-Capital founder.
This "significant investment gap in the games market" followed the initial public offering of Zynga. Capital markets were not taking advantage of the mobile game space's long-term growth. "There could also be mispricing across both private and public games markets in 2013," added Merel.
"In our experience we haven't seen a market as large, growing as fast as mobile apps/games. We think this could be the highest growth, large technology market today. Yet capital markets aren't taking advantage of the opportunity. Particularly in mobile, we think the opportunity cost of not investing is potentially more significant than the investment itself. As well as being a major opportunity, mobile disruption could pose a significant risk for those who don't learn how to play," stated Merel.
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