The UK Games Fund will receive an extra £8 million ($10.8 million) from the UK government to help start-up game companies find their feet.
UK trade body Ukie explained the cash is part of a wider £50 million funding boost into the region's creative sector.
The UK Games Fund was established in 2015 and offers support to early-stage games businesses across the UK. It provides financial support through a range of grants and also runs mentorship schemes and other business initiatives to help fledgling game companies nurture talent and develop their intellectual property.
The fund has supported over 170 projects to date, investing a total of £5.7 million into companies like Auroch Digital and Ant Workshop. Ukie CEO Dr Jo Twist described the additional funding as a "welcome vote of confidence" in the UK games industry.
"The UK sector is a global success story that is both a critical exporter and a source of extensive inward investment," added Twist. "This support will help the next generation of businesses access the finance they need to build the games to do that, while creating high value jobs across the whole country."