Insights from Ilya Karpinskiy: A Veteran’s View on the Gaming Industry in Cyprus
In a recent conversation with the Cyprus Mail, Ilya Karpinskiy, a well-established figure in the gaming industry, shared his extensive experience as both a game creator and investor. Karpinskiy’s journey began in 2004 as a developer and project manager, leading him to work with Nival Network and later with VK’s gaming division, My.Games. He co-founded MGVC, one of the pioneering gaming-focused venture investment firms, and established The Games Fund, an early-stage gaming VC fund based in Cyprus and New York.
Karpinskiy also founded Owlcat Games, a game studio located in Cyprus, known for developing PC and console games such as Pathfinder: Kingmaker and Warhammer 40k: Rogue Trader. He highlighted the trend of game studios relocating to Cyprus, citing companies like Wargaming as pioneers. The island’s government initiatives and favorable business environment have made it an attractive hub for IT and video game developers from Eastern and Central Europe.
The significance of Cyprus in venture investments is underscored by its legal framework and strategic location. Karpinskiy noted that operating under English law offers transparency for founders, investors, and limited partners (LPs). The Games Fund prefers Cyprus for its efficiency and robust legal structure, which aligns with their goal of transparent and effective business operations.
When comparing Cyprus to other European countries, Karpinskiy emphasized its advantages in running businesses and attracting talent. The streamlined approach to establishing businesses and relocating talent, combined with the quality of life and strategic location, makes Cyprus stand out as a premier destination for global operations.
Owlcat Games focuses on developing premium PC console RPG titles for the global market. The studio is dedicated to creating high-quality entertainment and fostering creativity within its team. Karpinskiy also mentioned that they provide spaces for events and training to contribute to the local and global growth of the gaming industry.
The Games Fund takes a human-centered approach in selecting portfolio companies, focusing on the founders’ vision and expertise. They assess potential based on significant milestones for both premium games and free-to-play titles. Their support includes financial assistance, strategic insights, connections, and fundraising guidance.
Karpinskiy discussed the challenges and opportunities of free-to-play versus premium games. Free-to-play games demand strong marketing and service management, while premium titles require high-quality content creation with significant investment. The Games Fund supports companies regardless of their chosen model, aiming for their success.
Looking ahead, Karpinskiy envisions The Games Fund becoming the leading gaming VC. With a commitment to fostering innovation and talent in the gaming industry, they aim to connect capital with impactful opportunities for game-makers. Cyprus is poised to play a crucial role in these future initiatives.
