Exclusive Interview with Jens Hilgers, CEO of BITKRAFT

Introduction and Background

In this section, the speaker introduces themselves and provides background information about their passion for gaming and their experience in the industry.

Speaker's Background

• The speaker grew up with a passion for gaming and was heavily influenced by the Amiga computer.

• They built their first online gaming business in the late 90s, focusing on multiplayer video games.

• The speaker founded Turtle Entertainment (now known as ESL), which became the largest league for video gamers globally.

• They facilitated a strategic acquisition of ESL to the Swedish Modern Times Group in 2015.

• After stepping down from the board, they focused on building more businesses in the gaming industry, including G2 Esports and bitcraft.

Introduction to bitcraft

In this section, the speaker discusses bitcraft, a fund that manages over $800 million in committed capital and invests in esports, video games, and interactive entertainment companies.

Introduction to bitcraft

• bitcraft started as an esports-focused fund but expanded its scope to include investments in the larger video game and interactive entertainment industry.

• The fund manages over $800 million in committed capital and has a portfolio of about 130 companies.

• The team consists of close to 30 people distributed mainly through Western countries but recently expanded with teams based in Asia.

Passion for Gaming

In this section, the speaker emphasizes their passion for video games and believes that gaming will continue to shape society.

Passion for Gaming

• The speaker is passionate about all forms of gaming and believes it will continue to shape society.

• They have a strong belief that gaming will play a significant role in how we entertain ourselves going forward.

Craft Token Fund

In this section, the speaker discusses the Craft Token Fund, which focuses on investing in web3 and crypto projects.

Craft Token Fund

• The Craft Token Fund was launched in 2021 as a dedicated vehicle for investing in web3 and crypto.

• The fund raised $75 million and has been actively investing in companies in the portfolio.

• A second fund, Craft Token Fund number two, is currently being raised but cannot be publicly discussed due to regulatory restrictions.

Investments in Immutable

In this section, the speaker mentions their investment in Immutable and expresses excitement about it.

Investments in Immutable

• bitcraft is a big investor in Immutable, showing enthusiasm for their involvement with the company.

The transcript does not provide further details about why they are excited about their investment in Immutable.

The Impact of Immutable in the Gaming Space

In this section, the speaker discusses the impact of Immutable in the gaming space and why they chose to invest in it.

Investment in Mutable as a Puzzle Piece

• Immutable was seen as a significant transaction layer that would likely emerge as a winner in the gaming industry.

• The decision to invest in Immutable was based on its management team quality, technological choices, and its foundation on Ethereum.

• The speaker believes that choosing Immutable was a bold bet and they have invested a significant amount of capital into it.

Excitement about Partnership with Polygon

• Despite some struggles over the past few years, the speaker is optimistic about the partnership between Immutable and Polygon.

• This partnership positions Immutable well in the market and brings more clarity to the space of crypto gaming.

User Growth in Crypto Gaming

In this section, the speaker discusses their perspective on user growth in crypto gaming.

Uncertainty around User Numbers

• The speaker does not provide specific numbers for user growth predictions.

• They express dislike for making precise predictions about user numbers transacting with digital wallets and assets in video games.

Focus on Entertainment Quality

• The first priority is to create amazing entertainment quality empowered by blockchain and crypto technology.

• 2021 marked an opportunity to invest behind experienced gaming teams incorporating crypto and blockchain into their game design.

Timing of Adoption

• The speaker expects that true value games built with blockchain and crypto will start emerging between 2023 and 2025.

• These games will drive adoption among gamers who will interact with digital wallets and assets on the blockchain.

Inflection Point for Crypto Gaming

In this section, the speaker discusses factors that can lead to an inflection point for crypto gaming.

Single Game Impact

• While it is difficult to predict the specific game that will have a significant impact, the speaker is confident that an inflection point will occur within the next 12 to 18 months.

• The quality of games and their integration with blockchain and crypto technology are key factors.

Technical Components and Infrastructure

• Besides game quality, technical components and underlying infrastructure play a crucial role in driving adoption.

• Improved tooling, wallets, transaction layers, and reduced friction contribute to a better gaming experience.

Reducing Friction for Gamers

• The speaker highlights the importance of reducing friction for gamers when it comes to understanding terms like NFTs.

• Simplifying terminology and improving user-friendly digital wallets can enhance adoption.

Challenges in Crypto Gaming

In this section, the speaker discusses challenges faced in crypto gaming.

Terminology Confusion

• The speaker questions the need for gamers to understand complex terms like NFTs.

• They suggest focusing on explaining ownership of digital assets without using confusing terminology.

Clunky Digital Wallets

• Digital wallets often have cumbersome processes such as authorizations and signatures.

• Improving wallet usability can help reduce friction for gamers.

This summary covers key points from the transcript.

The Importance of Gaming in the Crypto Space

In this section, the speaker discusses the significance of gaming in the crypto space and expresses skepticism about the presence of "true gamers" in the industry. They emphasize their focus on entertainment and express optimism about the potential for blockchain technology to enhance gaming experiences.

Importance of Gaming and Entertainment

• The speaker believes that true gamers are primarily interested in entertainment rather than speculation or investment.

• They express doubt about the existence of true gamers within the crypto space.

• Emphasizes their personal love for Ethereum, Bitcoin, and gaming.

Optimism for Future Growth

• Despite recent challenges in the crypto space, such as hiccups and volatility, the speaker remains optimistic about its future.

• Anticipates a deflection point in the coming months and years that will bring significant changes to the industry.

• Highlights numerous exciting events and developments to watch out for.

Criteria for Investing in Founders and Products

In this section, the speaker explains Bitcroft's investment approach. They prioritize founder quality, team execution abilities, learning agility, market segmentation, and leveraging new technologies like AI. The goal is to identify founders who can create innovative products that improve gaming experiences or enable others to build better games.

Key Investment Criteria

• Founder Quality:

• Assessing team quality and ability to execute effectively.

• Evaluating their capacity to inspire others.

• Considering potential talent acquisition capabilities.

• Learning Agility:

• Assessing how quickly founders learn from existing knowledge within the space.

• Evaluating their ability to combine different elements into a smart new product.

• Market Segmentation:

• Identifying founders who target specific subsegments of the gaming market effectively.

• Leveraging New Technologies:

• Examining how founders integrate new technologies, such as blockchain and AI, into their gaming products.

• Assessing the potential for creating new platforms or business models that enhance gaming experiences.

Interest in the Middle East Market

The speaker discusses their fascination with the Middle Eastern market due to its significant audience size, high spending capability, and interest in digital and Western entertainment products. They highlight the growth of the region over the past few years and express excitement about exploring investment opportunities there.

Fascination with the Middle East

• The Middle Eastern region has a large audience size (250-300 million people) and strong spending capability.

• There is a fascination for digital and Western entertainment products in this region.

• The speaker's interest in the Middle East has been proven by recent growth trends.

Personal Experience and Saudi Arabia

• The speaker sold a company to The Savvy group in Saudi Arabia about a year ago.

• They spend approximately one week every six to seven weeks in the Middle East.

• Expresses admiration for Saudi Arabian leadership's passion for bringing video games to the region and inspiring local entrepreneurs.

Investment Opportunities

• Bitcroft aims to find investable opportunities in the Middle East within the next 12 to 18 months.

• Acknowledges that finding suitable investment opportunities may be limited due to a nascent entrepreneurial basis for building video games in the region.

• Expresses some concerns about excessive investment activity without sufficient education on investing in gaming.

Due to limitations on section length, further sections will be created based on remaining content from the transcript.

The Importance of Building Your Own Gaming Experiences

The speaker discusses the current availability of tools and platforms that allow average gamers to build their own gaming experiences. They emphasize the importance of taking advantage of these opportunities to create and share your own games.

Building Community and Accessing Opportunities

• With platforms like Fortnite Creative Mode and Roblox, gamers now have the ability to build their own gaming experiences either alone or with friends.

• It is now easier than ever to make yourself known publicly for what you do and build a community around it.

• Start playing around with game development tools and explore different aspects to find what fascinates you the most.

• While there are many opportunities available, it is important to filter out the noise and focus on something specific when building a community.

Tips for Success in Game Development

• Find good co-founders who bring additional experience and skills to the table. Having trusted partners increases the probability of success.

• Consider raising capital from smart people who can provide more than just financial support, such as valuable partnerships.

• Be patient and capital efficient. Despite the fast-paced nature of the industry, taking time to build a solid product is crucial.

• Don't let the noise distract you. Stay focused on your passion and avoid getting caught up in short-term trends.

• Those who started years ago in fields like crypto gaming are still successful today because they took their time to fine-tune their products with a great team.

Personal Gaming Preferences

The speaker shares their personal gaming preferences, influenced by their children's choices. They highlight the joy of playing together with their kids and mention specific games they enjoy.

Gaming Choices Influenced by Kids

• The speaker's game choices are largely dictated by their children's preferences.

• Playing together with kids brings immense joy and teaches valuable lessons about how they approach games.

• The games played with their kids have a significant impact on the speaker's own gaming life.

• Minecraft and Fortnite are mentioned as popular games enjoyed with their children.

Collaborative and Cooperative Social Play

• The speaker believes that collaborative and cooperative social play is an area with great potential for future development.

• They mention investing in companies that focus on this aspect of gaming, emphasizing its underutilized nature.

Conclusion and Invitation

The conversation concludes with gratitude for the interview and anticipation of meeting again in the Middle East. An invitation to Gamers8 is extended.

Final Thoughts and Invitation

• The speaker expresses gratitude for the interview and looks forward to future interactions.

• They express interest in meeting at Gamers8, an event in the Middle East.