GamesHUB #22 | Web3 Gaming VC: Unleashing Lucrative Opportunities with the Founder of Spawn Point Media

Meet our Guest:
Zach Hungate

Web3 Venture Capitalist & Founder of Spawn Point Media.

With our Host:
Constantin Kogan

GamesPad & BullPerks Co-Founder, Partner at BitBull Capital.

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Can you explain what are the unique features and advantages of Web3 gaming compared to traditional gaming?

I think ownership is often a headline, but it shouldn’t be. It’s more of a feature. But to me, the great thing about Web three is transparency, security, economic benefits for the players, the publishers, and the ability to really disrupt the big publishers here and the US and globally. I think people are still trying to figure out the best model on how to incorporate Web three. And it hasn’t been done perfectly yet because you see people slap on NFTs and a token that hasn’t worked. So I think the best is yet to be seen and super hopeful for some of the big titles coming out end of this year and early next.

What makes Web3 gaming an attractive field for VC investments?

In fact the number is super staggering if you look at it. But it is the lowest over the last three years, and I certainly feel it, but there is hope and deals are getting done. Why is it attractive? There’s 8 billion p people in the world, 3 billion plus identify as gamers, but I guarantee it the other half that don’t identify have played a game in their life before. And that’s what’s attractive to investors. It’s pretty much a known thing amongst my peers at least, that gaming is gonna be the thing that ushers in the blockchain to the masses. And you know, I think everyone is trying to pick their horse, if you will and be to be a part of the revolution, really.

What advice would you give traditional game developers entering web3 gaming? Key factors to consider for creating a successful web3 game?

I think you should do your research. There’s a lot of emerging infrastructure companies that I’m excited about that really make it easy SDKs to plug into Unity on Unreal, whether you’re mobile or PC, to give us seamless experience and happy to make recommendations out there for those curious. But, you know, I back the likes of the founders of like Shrapnel who created Halo and you know, they’re working on some interesting infrastructure projects, but the advice to new developers is to do your research and really take what worked for you in Web two and just double down on that. I think the Web three space needs it and use the blockchain for the dream which is, you know, ownership and transparency and security and economics.Ā 

How would you weigh the potential of a web3 gaming startup against a traditional gaming company transitioning to web3 gaming?

When I think about investing in a game, it’s not only just is it gonna stand apart in the web three space, right? It has to be the Web two games as well, because I think about Web two and Web three merging over the coming years, and that’s a key part of my diligence. And so I think the best games that are gonna emerge that do incorporate Web three technology are gonna be like mods and twists of successful games and Web two, right? And that’s what you’re seeing emerge, whether it’s social gaming with one of my projects Project Alone, I’m also super bullish on VR and my company Boss Fighters. I think overall Iā€™m super excited about the space in general.

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