The nearly 3 billion gamers in the world are expected to push the global gaming industry to more than $200 billion in 2023, according to some estimates.
And with money flowing through a market that big, investors will be on the lookout for opportunities.
Gameflip is a digital marketplace app where gamers can sell their credits, gaming skins and accessories to each other as well as upgrade games. Gameflip is raising funding on StartEngine, a platform that allows retail investors to invest in startups, including Gameflip. According to Gameflip’s raise page, its technology not only gives gamers the ability to defray the costs they pay for games by selling them, it also has the potential to disrupt the current gaming business model.
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Gameflip has a unique take on how to profit from the gaming industry. Many of today’s most popular games are downloaded and require players to make in-game purchases known as microtransactions. Microtransactions account for nearly 30% of the entire gaming industry.
But the average gamer loses hundreds in microtransactions when they stop playing a game or switch to another one. Gameflip hopes to disrupt the business model by giving gamers the ability to capitalize on their microtransactions through its online marketplace.
Gameflip’s marketplace allows gamers to sell everything from FIFA tokens to Call of Duty weapons upgrades directly to each other. Gameflip has 6 million users and has sold $140 million worth of gaming products through the app. Gameflip makes money in three ways:
- A purchase fee of up to 4% of the final price
- A seller commission of 10%
- A fee between 1% and 2% for sellers when they cash out of their Gameflip account
Gameflip is also developing blockchain technology that will enhance the security and simplicity of gamer-to-gamer transactions in the app. The Gameflip business model has garnered attention from both gamers and investors. Well-known Silicon Valley venture capitalists such as Bullpen Capital, GoAhead Ventures and Lightbank have invested $10 million in the platform. Going forward, Gameflip envisions its blockchain customer-to-customer app will have applications in other fields, including fashion, music and entertainment.
Gameflip’s brain trust is also working on expanding the company’s blockchain technology to another storefront, Gameflip Omni, where game developers and content creators can sell products directly to consumers. If Gameflip can parlay its early revenue and blockchain technology into creating a multifunctional platform where members can safely buy, sell and trade consumer products, it has the potential to be a major player in the gaming/tech sector.
The chance to get in early on an app with the kind of market share and earning potential that Gameflip offers will be enticing for many investors. It’s currently available on the StartEngine platform for a limited time.
See more on startup investing from Benzinga.
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