At the Casual Games Association conference in Seattle last week, Paul Heydon, managing director of London-based investment bank Avista Partners gave a good presentation on the VC and M&A deals activity in the sector. The full presentation PDF with some good stats/numbers over the last year is here. Numbers this year: four fundraising deals closed in 2007 for a total of over $135 million. For M&A, nine acquisitions closed in 2007 to date for a total of over $227 milion; run rate of $400 million in deals for the year if continues at that rate which would be most ever.

Meanwhile, Google gave some hints of its plans for in-game advertising, after its recent buyout of AdScape Media. In its “AdSense for Games” plans, game publishers will be able to use the Google system to put ads in their games, and advertisers will be able to work through the Google system to buy ad space within games. It will start with ads in Web-based games, with plans to move into PC and console games later on. More here.