gaming growth — gaming growth — Cyprus is emerging as a key hub for gaming industry growth, drawing attention from investors like Zubr Capital. In a recent interview, investment director Nikita Krivelevich discussed how the island’s developing ecosystem, bolstered by artificial intelligence and strong founding teams, is shaping the future of mobile gaming.
At the heart of Zubr Capital’s investment strategy is a focus on companies generating over four to five million dollars in annual revenue, with investments typically ranging from five million to twelve million dollars. While the firm adopts a generalist approach, it shows a distinct preference for businesses in B2B SaaS, mobile applications, artificial intelligence, and gaming.
Krivelevich highlighted gaming as an area of particular interest due to the firm’s partnership with Wargaming, alongside their extensive experience evaluating over 20 companies in the past five years. One notable investment is in Soloband Games, a studio focused on the Merge 2 mobile gaming segment.
The investment decision was informed by several factors, including strong product positioning, a clear market niche, and an experienced team. Krivelevich emphasised the critical role of the team in deciding whether to invest, stating, “The potential team members or current team members are the most crucial part when we decide to invest or not to invest.” This thorough evaluation process includes HR due diligence, where discussions with key team members help assess capabilities and long-term potential.
Even if a product is not particularly strong, a capable team can still attract investment. “In case we see a good product and good market but not such a good team, probably we would not invest, but on the other side, probably we would invest in case the team is nice,” he remarked. This principle reflects the belief that talented teams are likely to develop successful products over time.
Discussing the significant potential of the mobile gaming market, Krivelevich noted its worth in the hundreds of billions, despite modest growth rates. Soloband Games has carved out a specific niche within this expansive market, and its strong execution and clear development strategy stand out, even in a highly competitive environment. “The opportunity to attract clients, to retain these clients and to monetise these clients is something very special, and these guys, they know how to do it,” he said.
When evaluating scalability, Zubr Capital considers three main factors: the experience of founders, market size and potential, and the transformative role of artificial intelligence. Krivelevich pointed out that AI is reshaping game development, enabling smaller teams to accomplish what once required larger organisations. This shift could lead to a resurgence of smaller teams producing globally successful games, reminiscent of earlier gaming eras.
Marketing has also emerged as a pivotal element for success in mobile gaming. The competitive nature of app stores and digital marketplaces means that gaming companies must adapt quickly to changes in advertising platforms, making strong marketing and operational teams essential for survival and growth.
Krivelevich elaborated on Zubr Capital’s rigorous approach to due diligence, which includes examining unit economics, retention strategies, and monetisation models. Gaming companies often employ diverse strategies, from early monetisation to gradual engagement with users over the long term. Soloband Games aims to strike a balance between maintaining user engagement and generating revenue, focusing on understanding user behaviour and spending patterns.
Cyprus is increasingly recognised as a robust global location for gaming companies, with a mature ecosystem supported by industry giants like Wargaming. Krivelevich highlighted the growing number of founders and studios operating across mobile, PC, and console gaming, facilitated by a vibrant community and frequent industry events. The regulatory environment and lifestyle advantages make Cyprus an appealing base for international talent.
Furthermore, the island’s connections to other technology hubs, such as Israel and continental Europe, enhance its appeal. Regular visits from US industry professionals ensure that local companies remain aligned with global technology trends and investment flows.
As Zubr Capital expands its portfolio, the firm is keen to increase its presence in the gaming sector, leveraging its experience in mobile applications. The firm aims to identify companies capable of delivering substantial returns, like Soloband Games, which it believes has the potential to emerge as a leader in its segment. With around $250 million managed across 30 technology companies, including two unicorns, Zubr Capital’s strategy remains focused on high-growth sectors, driven by institutional investors.
Krivelevich reaffirmed the importance of Cyprus in Zubr Capital’s operations and strategy, viewing the country as a strategic base for building scalable technology businesses and contributing to regional industry development.
