Investors are betting on user-generated content, and Gamebeast's founder explains why
Oct 9, 2024
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Zander Brumbaugh, the 22-year-old founder of Gamebeast, shares insights from his startup that empowers Roblox developers with essential tools for game creation. He discusses the booming trend of user-generated content (UGC) in gaming and why investors are eagerly betting on it as the future of the industry. Zander also highlights the dual-use potential of Gamebeast’s technology, attracting interest from both commercial and defense sectors. Expect a deep dive into the exciting intersections of gaming, innovation, and investment strategies!
Gamebeast enables Roblox developers to modify games seamlessly with essential tools like A/B testing, filling a significant gap in user-generated content.
The rise of user-generated content is transforming the gaming market, attracting investor interest and signaling a shift towards customizable, community-driven experiences.
Deep dives
Introduction to GameBeast and Its Unique Offering
GameBeast provides essential tools for Roblox developers, including A-B testing and live operations, enabling modifications to games without the need for disruptive updates. This service addresses a notable gap in the Roblox ecosystem, where such functionalities have been standard for other gaming platforms. The startup, led by founder Xander Brumba, recently secured a $3.7 million pre-seed investment, underscoring recognition of the market potential. Xander brings considerable experience from a decade of involvement in Roblox, having developed popular titles and authored a bestselling book on game coding.
The Growing Trend of User-Generated Content (UGC)
User-generated content (UGC) in gaming is experiencing significant growth, with major platforms like Roblox and Fortnite attracting millions of users and helping creators earn substantial revenue. Data shows increasing interest from younger demographics, with a large portion of kids requesting virtual currency for gaming platforms rather than standalone titles. This shift signals a changing landscape in gaming, where players are inclined to engage with customizable and community-driven experiences. As such, UGC is expected to play a pivotal role in the future of the gaming industry.
The Impact of Generative AI on Game Development
Generative AI presents both challenges and opportunities for the game development space, particularly for user-generated content creators. While there is concern about AI causing low-quality mass production of games, it can also lower the barrier to entry for aspiring developers by increasing accessibility to content creation tools. Enhanced AI capabilities could streamline workflows and improve development efficiency, enabling creators to focus more on innovation. Nonetheless, the potential for AI to democratize game development raises questions about the necessity for traditional coding skills among new developers.
Investment Trends and the Future of UGC Platforms
Investment interest in user-generated content platforms is increasing, with projections suggesting significant funding in the gaming sector for upcoming years. The focus on data-driven insights and community engagement is central for developers aiming to succeed in an evolving market, with automated analytics offering valuable feedback on game performance. The trend indicates that as UGC continues to gain traction, companies that provide infrastructure and support for these creators, like GameBeast, will be well-positioned for success. Expectations also point to continued growth in UGC's market share within the gaming industry, potentially rivaling traditional game production.
Today on Equity, Rebecca Bellan sat down with Zander Brumbaugh, the 22-year-old founder of Gamebeast, a startup that offers Roblox developers tools like A/B testing and LiveOps to modify games without needing to release a new version or interrupt a user’s ongoing game.
Gamebeast recently raised a $3.7 million pre-seed round, led by J2 Ventures with participation from a16z’s Speedrun accelerator, which Brumbaugh graduated from in March. Brumbaugh said everything from his experience consulting for entertainment studios like Netflix, and writing a best-selling book on Roblox development, to chats with investors tell him that the future of video gaming is in user-generated content, or UGC.
The two discussed the rise in popularity of UGC games, a sector that investors are increasingly looking towards as drivers of growth in the video game industry. Brumbaugh didn’t only get investment for his startup because investors see the value in enabling UGC game development. J2 Ventures’ thesis focuses on dual-use technology, and Gamebeast was able to demonstrate how its tech has applications both in commercial and defense. And indeed, we’re seeing a trend of companies going for that sweet military money to stay afloat.
There are more insights about the future of the video game market and investor insights aplenty, so have a listen, and enjoy!
Equity is TechCrunch’s flagship podcast, produced by Theresa Loconsolo, and posts every Wednesday and Friday.
Subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod. For the full episode transcript, for those who prefer reading over listening, check out our full archive of episodes over at Simplecast.
Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products.
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