OneComply is a Canadian company that offers secure digital storage and compliance solutions for businesses in the global gaming industry. Splash Technology is a UK firm specializing in the development of interactive mobile gaming apps and recently launched their free-to-play platform called Swipe. As investors, we recognize the potential for growth and innovation in these finance-related ventures.
Despite the significant impact of Covid-19, economic initiatives, including those in the gaming industry, continue to progress. Business ideas persist, and the need for survival, growth, and thriving remains for companies. While the pandemic has affected investments in various ways, JAMCO has seen continued success in certain areas and challenges in others.
The online space, excluding sports betting, has performed remarkably well during this time, presenting investment opportunities. The emergence of the sports betting market in the United States further indicates that the pandemic’s effects have not seriously impacted investment prospects. Several companies, such as OneComply, are expanding operations and entering the emerging sports markets in the US.
With capital available from successful business exits, we have the means to invest strategically. However, the full economic impact of the pandemic remains uncertain, and it’s crucial to take a cautious approach and wait for further clarity in the near-term investments.
Due to travel restrictions and social distancing measures, our investment process has undergone significant changes. We now rely on shared online workspaces, video conferencing, and thorough digital footprint reviews to get to know the management team and other key stakeholders. In-person meetings, which were once integral to the due diligence process, are currently not possible.
We firmly believe that the success of an investment lies in the people behind the business. Therefore, we continue to prioritize engaging with key stakeholders on a personal level. COVID-19 has not altered our core philosophy of investing in people. In the gaming industry’s current maturity, we seek businesses with proven management track records, viable models, and strong growth potential.
Raising capital in the gaming industry, particularly in the online sector, requires companies to demonstrate strong management, solid technologies and ideas, full funding, and robust business models. The complexity of international regulatory requirements adds further challenges to the landscape.
Chris Kape, an industry veteran, is the owner of JAMCO Capital, an early-stage venture capital and business consultancy focusing on the iGaming industry.
