Zubr Capital highlights Cyprus role in global gaming expansion

Cyprus emerging as key hub for gaming industry growth Zubr Capital investment director Nikita Krivelevich has pointed to artificial intelligence, strong founding teams and Cyprus’ growing gaming ecosystem as key drivers shaping the future of mobile gaming, in comments made during an interview focused on the firm’s investment strategy and its backing of Cyprus-based Soloband Games. Speaking exclusively to the Cyprus Mail about the private equity firm’s approach, Nikita Krivelevich said Zubr Capital, which focuses on Series A and Series B investments, typically targets companies generating more than four to five million dollars in annual revenue, with cheque sizes ranging between five million and 12 million dollars. He said the firm takes a generalist approach rather than focusing on a single sector, although it shows a preference for B2B SaaS companies, mobile applications, artificial intelligence and gaming-related businesses. Nikita Krivelevich highlighted gaming as a particular area of focus due to the firm’s partnership with Wargaming and its experience evaluating more than 20 companies over the past five years, including its decision to invest in Soloband Games, a studio operating in the Merge 2 mobile gaming segment. He said the investment decision was driven by a combination of strong product positioning, a clear market niche and an experienced team, adding that in some cases the firm had chosen not to invest when those elements were missing. A central theme in his remarks was the importance of teams in investment decisions. “The potential team members or current team members are the most crucial part when we decide to invest or not to invest,” Nikita Krivelevich said. He said the firm conducts what it describes as HR due diligence, during which it speaks to up to a dozen key team members and founders to assess mindset, capability and long-term potential. Even where products are weaker, he said a strong team can still attract investment. “In case we see a good product and good market but not such a good team, probably we would not invest, but on the other side, probably we would invest in case the team is nice,” he said. The reasoning, he added, is that capable teams tend to eventually develop successful products and capture market share over time. Discussing how the Soloband Games investment aligns with Zubr Capital’s strategy, Nikita Krivelevich said the company operates in a large and growing mobile gaming market worth hundreds of billions of dollars, even if growth rates are relatively modest. He said Soloband had identified a specific niche within the market, supported by strong execution and a clear development strategy, although he acknowledged the sector remains highly competitive. “The opportunity to attract clients, to retain these clients and to monetise these clients is something very special, and these guys, they know how to do it,” he said. On scalability, Nikita Krivelevich said the firm looks at three main factors, starting with the experience of founders in building and scaling businesses, including prior exits and leadership roles in large companies. The second factor is the size and potential of the market, while the third is the role of artificial intelligence in enabling smaller teams to deliver larger outputs. He said AI is already transforming game development by allowing lean teams to achieve what previously required much larger organisations. “It’s really true nowadays, especially for gaming,” he said, adding that industry conditions are increasingly enabling small groups of developers to build major titles. Nikita Krivelevich compared the shift to earlier eras of game development, suggesting that AI could enable a return to a model where small teams produce globally successful games. He also pointed to marketing as an increasingly critical factor in mobile gaming success, given the intensity of competition in app stores and digital marketplaces. He said advertising platforms such as Google and Facebook can change algorithms or rules rapidly, forcing companies to adapt quickly or risk losing user acquisition channels overnight. This, he said, makes strong marketing and operational teams essential for survival and growth. On user retention and monetisation, Nikita Krivelevich said Zubr Capital undertakes deep commercial, financial and operational due diligence before investing, examining unit economics, churn, retention strategies and monetisation models in detail. He said gaming companies use different approaches, including early monetisation strategies or focusing on high-value users known as “whales”, while others prioritise long-term engagement and gradual monetisation throughout gameplay. Soloband Games, he said, aims to balance monetisation with user experience by maintaining engagement while generating revenue over the lifetime of the player. He added that understanding how users return and continue spending is central to evaluating long-term viability in mobile gaming investments. Turning to Cyprus, Nikita Krivelevich said the country has become one of the strongest global locations for gaming companies, citing the development of a mature ecosystem anchored by firms such as Wargaming. He said Cyprus now hosts a growing number of founders and studios across mobile, PC and console gaming, supported by frequent industry events and strong community networks. He also highlighted regulatory and lifestyle advantages, describing Cyprus as an attractive base for international talent. “The ecosystem right now is huge here,” he said. He added that Cyprus benefits from close ties to other technology hubs, including Israel and continental Europe, as well as regular visits from US-based industry professionals. This international connectivity, he said, ensures that companies based in Cyprus remain closely integrated into global technology trends and investment flows. On Zubr Capital’s portfolio, Nikita Krivelevich said the firm currently has limited exposure to gaming but is actively expanding in the sector, drawing on its broader experience in mobile applications. He said similarities between mobile apps and mobile gaming, particularly in distribution and marketing, provide a foundation for future investments. The firm’s strategy, he added, is focused on identifying companies capable of delivering fivefold returns, including businesses such as Soloband Games. “We are looking for companies which can increase revenue and the overall valuation of the company five times,” he said. He added that Zubr Capital believes Soloband has the potential to become a leading company within its segment. The Limassol-based firm, which manages around $250 million across 30 technology companies, including two unicorns, continues to expand its footprint in high-growth sectors with backing from institutional investors such as the European Bank for Reconstruction and Development, the Dutch Entrepreneurial Development Bank and Wargaming. Nikita Krivelevich concluded by underlining Cyprus’ role in the firm’s operations and wider strategy, saying Zubr Capital sees the country as a strong base for building scalable technology businesses and participating in regional industry development.