Our friends at Cerca Trova have released their September newsletter outlining recent M&A and investment activity in the games industry. Special thanks to Martin Wierzbicki who spends a lot of time pulling this info together and for allowing us to share this with you. I encourage everyone to sign up to get their updates on a more regular basis and to get to know the team there.
At first glance, this summer’s deal activity seems to be a case of “the more things change, the more they stay the same.” While the summer’s pace slowed down a bit after EA’s hefty PopCap acquisition, Zynga continued its Pacman-like “acqui-hiring” strategy as it snapped up Astro Ape, EA stuffed Bight Games into its burgeoning portfolio, Vostu continued its South American consolidation strategy and grabbed MP Game Studio, and DeNA/ngmoco acquired sports game developer Lionside. If you add in the Lolapps/6waves merger, one is left with the unmistakable impression that the big boys are getting bigger, the middle tier players are being picked off one by one, and the little guys are left standing on the sidelines hoping to be “acqui-hired” so that they can play in the big leagues too.
However, something deeper is amiss. The mad scramble for content, talent and users over the past few months is a very strong signal that companies are rapidly seeking to build scale and consolidate their strategic positions in social gaming, while preparing for the next phase in the evolution of mobile gaming, and the ultimate convergence of mobile and social platforms. With Project Spartan, HTML5 and the ascendancy of the browser on the horizon, nobody wants to be on the wrong side of any tectonic shifts, and while the current M&A climate might contain whiffs of insanity to some, and strain credulity for others, a strong argument remains that the behavior of the players playing the game is eminently rational, and indeed, prudent.
While recent M&A activity has been focused on building scale and large, volume businesses, things look a bit different on the financing side. Venture investors are increasingly putting money to work in newer (and highly profitable) niche segments ranging from “hard core” and “tween” oriented social games to tools and distribution players. Hard core social developer Kixeye raised $18 million last month and is expected to see $40 million in revenue this year from a user base of just over 1 million daily active users. Montreal-based Woozworld, a user-generated social game for tweens, raised $6 million in new funding and has tripled its user base during the last six months to 15 million monthly active users. And tools provider Unity hauled in an additional $12 million slug of cash, ostensibly for the purpose of accelerating its technology roadmap and speeding up its Asian expansion. While these venture financings as a whole do not definitively provide the road map for the future, embedded in them are hints of both the latest trends in user behavior, and the future direction of the rapidly evolving games landscape.
Games M&A Activity
On September 12, DeNA/ngmoco continued its recent acquisition streak and snapped up sports game developer Lionside, co-founded by Brandon Barber and known for NBA Legends and Lionside football on Facebook. The transaction looks like a classic “acqui-hire” in that Lionside’s games had fewer than 30,000 daily active users, leading many industry observers to conclude that the IP and user base were less important than the team and development resources. The deal comes just three months after DeNA/ngmoco’s acquisition of Dutch mobile developer Rough Cookie.
On September 7, Brazilian social gaming powerhouse Vostu purchased Buenos Aires-based social developer MP Game Studio. MP’s games are known for incorporating properties from TV networks including TNT, The Cartoon Network and Nickelodeon, as well as major brands such as Coca-Cola, Unilever and National Geographic. MP’s employees will be relocated to Vostu’s new Buenos Aires headquarters. Perhaps this new business line will steer clear of the legal troubles that have beset Vostu as of late. On August 5, a Brazilian court granted Zynga’s request for an injunction against Vostu for copyright infringment. Notwithstanding Vostu’s stated determination to appeal and fight, this is very bad news for Vostu, as the standards for obtaining an injunction are relatively high. The only good news on the legal front at this point is that the US District court in California has barred Zynga from enforcing the injunction in the US.
On August 16, it was reported that Zynga “acqui-hired” the team behind mobile games start-up Astro Ape, a small New York-based studio that specializes in real-time mobile social games. Astro Ape’s titles include Office Heroes, Dessert Heroes, and Monsterz Revenge. Its most recent game, Vegas Strip City, is the company’s first Android title and was developed exclusively for DeNA’s Mobage social gaming platform. The deal is Zynga’s 15th acquisition in the last twelve months and shows that Zynga is still very much on the hunt for mobile talent.
On August 15, San Mateo-based Digital Chocolate announced the acquisition of casual game developer Sandlot Games. The Bothell, WA-based studio was founded in 2002 and has developed a number of casual titles including Cake Mania and Super Granny. While terms of the deal were not disclosed, Digital Chocolate CEO Trip Hawkins stated that the acquisition of Sandlot would bolster their development capabilities as well as strengthen their presence in Seattle and Eastern Europe. Sandlot founder Dan Bernstein will become a VP at Digital Chocolate and be responsible for the Seattle and St. Petersburg studios.
Also on August 15, EA announced the acquisition of Bight Games, a mobile freemium game developer, further expanding its mobile and casual offering. Based in Price Edward Island, Canada, Bight Games is known for Trade Nations, a popular iPhone and iPad title that was also recently launched on Facebook. After an IP dispute with Seattle’s Z2Live earlier this year, Bight retained the rights to the Facebook version of Trade Nations while the iOS version went to Z2Live. Terms of the deal were not disclosed.
On August 2, Glu Mobile announced the acquisition of console developer Griptonite Games and mobile developer Blammo Games. Glu’s CFO explained that the competitive threat of Zynga combined with internal development capacity constraints were key considerations for the moves. Glu paid approximately $28 million in stock for Griptonite Games. Griptonite and its 200 employees were focused on development for console, Nintendo DS, and iPhone, but according to Glu, they will begin an accelerated transition to free-to-play games in the near future. The acquisition of Blammo was also a stock deal valued at up to $20 million. Under the terms of the acquisition, Blammo, which was already under contract to deliver two games to Glu by 2012, will receive 1 million shares of Glu stock up front, with the potential to earn an additional 3.3 million shares if certain targets are met. The earn-out runs for a rather long time, until March 2015, but could be worth up to $15.2 million on top of the $4.6 million up front payment. Blammo is run by Christopher Locke, the creator behind Smurf’s Village and Zombie Cafe.
On August 2, Globant, a privately held Argentianian software developer, announced that it had acquired mobile and social applications developer Nextive. Founded in 2008 in San Francisco, Nextive has a broad set of gaming clients in the US, including Crowdstar, GSN and Zynga. Nextive’s team will lead Globant’s Mobile Studio, and Nextive’s 130 employees will merge into Globant´s team, working from development centers in San Francisco, Buenos Aires and Cordoba. Following this transaction, Globant plans to further expand its US team and expects to add 200 US-based employees in the next two years. The purchase price was not disclosed.
Also on August 2, Sucker Punch Productions became a Sony-owned developer. Based in Bellevue, WA, Sucker Punch Productions is the award-winning developer of the Sly Cooper series for the PlayStation 2 and the inFamous franchise on the PlayStation 3, with combined franchise sales surpassing seven million units worldwide. Worthy of note: inFamous 2 was one of the top selling console games in the US in June. Terms of the deal were not disclosed.
On July 19, Live Gamer, a gaming e-commerce infrastructure firm, announced it had acquired Brandport and GamerDNA as part of a move into the games advertising business. The move should help Live Gamer provide more ways to help game publishers monetize their online games, from virtual goods and micro-transactions to advertising inside their games. Andrew Schneider, president of New York-based Live Gamer, explained that Brandport can offer virtual goods to gamers who agree to watch video ads in order to earn virtual currency that they can use to pay for goods inside the game. GamerDNA is the fifth-largest gamer ad network in the U.S. and Europe, according to comScore. Advertisers include Blizzard, Best Buy, KFC, Ubisoft, Sony Online and Namco. Brandport will be re-branded as Live Gamer Ad Elements. The company still operates web sites such as 360voice.com, Crispy Gamer, and GamerDNA.com. Terms of the deals were not disclosed.
On July 18, Ravenwood Fair and Ravenstone Mine developer Lolapps announced a merger with Korean games publisher 6waves. The combination of Lolapps and Hong Kong-based 6waves, known for publishing third-party Facebook games, creates a social gaming powerhouse with over 35 million monthly active users on Facebook alone. “The coming together of two of the social gaming industry’s leaders made a lot of sense given our complementary strengths and aligned vision,” said Arjun Sethi, CEO of Lolapps. “6waves is a leading international publisher of social games and Lolapps is a top social games developer.” Rex Ng, CEO of 6waves, will become CEO of the combined company with Arjun Sethi reporting to him. Terms of the deal were not disclosed.
Games Investment Activity
On September 14, location-based gaming start-up Red Robot Labs announced a new $8.5 million round of funding led by Benchmark Capital. Shasta Ventures and existing investors Rick Thompson, co-founder of Playdom, and Chamath Palihapitiya, former Facebook executive, also participated in the Series A funding round, and Benchmark’s Mitch Lasky will join the company’s board of directors. Last month at Penny Arcade Expo in Seattle, Red Robot Labs unveiled its inaugural location-based, massive multiplayer online mobile game, Life Is Crime, in which players collaborate and compete to commit virtual crimes at real locations. While the game has seen some early success, the location-based gaming space has proven to be a particularly difficult nut to crack for other players, so it will be interesting to see if the company can continue to sustain its early momentum.
On August 30, Woozworld, a user-generated social game for tweens, announced $6 million in new funding from Telesystem and iNovia Capital alongside industry angels. The company also announced that Bernard Gershon, former General Manager and SVP of Disney, has joined its board of advisors. With this new round, Montreal-based Woozworld intends to continue developing and promoting its online user-generated social platform, where tween users build entire worlds to creatively engage with their peers, build businesses, or set up restaurants, hotels and games as they choose. Woozworld’s user base has tripled during the last six months and it now receives more than 15 million monthly unique visitors from over 180 countries, with the largest group coming from the United States.
On August 24, Chinese mobile game developer CocoaChina announced that it had raised $14 million in Series B funding from Sequoia Capital China, Disney’s Steamboat Ventures and Northern Light Venture Capital. CocoaChina’s current hit iOS and Android title Fishing Joy has seen over 10 million downloads since it launched four months ago, and is one of China’s top grossing mobile titles. The company also hosts one of the most active iOS communities in China. It will use part of the new funding to further develop its community and to build new advertising and virtual currency products that will appeal to its broader iOS developer base.
On August 4, social game developer Kixeye announced a new $18 million round of financing led by Jafco Ventures with participation from previous investors Trinity Ventures and Lightspeed Venture Partners. The financing values Kixeye at nearly $200 million. Kixeye’s first game, Backyard Monsters, put the company on the map and still has more than 1 million daily active users. Kixeye followed with Battle Pirates in April, which was the first synchronous, real-time strategy game on Facebook. Battle Pirates users play an average of 60 minutes per day or 10-20x the industry average. Kixeye’s revenue this year is expected to be about $40 million, compared to about $3 million last year, and the company has been profitable for about eight months. Andrew Trader, a member of the founding team at Zynga who is no longer with the company, has joined Kixeye’s board.
Also on August 4, newly merged 6waves Lolapps, one of the leading social games publishers with 25 million monthly active users, secured a strategic investment from Korean online game developer Nexon. The investment came just days after 6waves Lolapps announced $35 million in funding from Insight Venture Partners. It’s unclear if Nexon’s investment was part of this funding or comes on top of it. The new funding will allow the group to further accelerate its international expansion, as well as to grow the Lolapps’ game development studio. “We are thrilled to be teaming up with 6waves Lolapps in such a significant way,” said Seung-woo Choi, CEO of Nexon in Seoul. “By joining forces, we are combining 6waves Lolapps’ experience in publishing and developing social games with our extensive knowledge of free-to-play games and the microtransaction business model.”
On July 20, cloud gaming company Gaikai announced that it had raised a $30 million Series C round led by New Enterprise Associates with participation from Qualcomm, Benchmark Capital, Rustic Canyon and Intel Capital. Like its larger rival OnLive, Gaikai provides a server-based, cloud gaming technology that streams video games and software experiences through the Internet to any web browser. The Los Angeles-based company recently landed a high profile distribution deal to stream games for Walmart.com and also has a streaming deal in place with EA.
Also on July 20, Unity Technologies, provider of the Unity development framework for cross-platform development of 3D games on the web, mobile devices and consoles, secured $12 million in Series B financing in a round led by WestSummit Capital of China and iGlobe Partners of Singapore. Current investor Sequoia Capital also participated in the round. San Francisco-based Unity already has more than 500,000 registered developers and plans to use the funding to accelerate technology roadmaps and expand into Asia. “Unity’s cross platform solution has been highly regarded as the best 3D game development platform among Chinese developers,” said Raymond Yang of WestSummit Capital. “We see China as the largest growing market for Unity, and we are strategically well positioned to help the company further penetrate the market and realize the full potential of doing business in China.”
Our friends at Cerca Trova Advisors put out a new newsletter and I recommend it highly. Thanks to Martin Wierzbicki and Gerard Wiener who know their stuff on Game Investment and M&A.
Monthly Digest of M&A and Investment Activity, May/June 2011
The games M&A and fundraising juggernaut continues its breathtaking pace as we enter the month of June. Rarely has a day passed, let alone a week, without a head turning (or sometimes, head scratching) deal being announced. Even if one does not include the prospective transactions that almost made it to the finish line and those currently in the pipeline, this year’s deal making remains unprecedented for its combination of depth, breadth, geographical scope and sheer size.
With May’s monthly scorecard of six acquisitions and eight fundings spanning eight countries (Turkey, Germany, Finland and Australia among others), there is no sign of a slowdown. Significantly, the latest batch of financing deals are also demonstrating that investors are still putting money into social gaming after several months of focusing on mobile, distribution and middleware plays. While the conventional wisdom during the last year has been that social gaming is played out, the money flow says not yet, at least when it comes to newer segments and geographies. And when we say money flow, we mean a lot of money. Kabam reeled in $85 million on May 26, which brings its 2011 haul to a staggering $115 million. Crowdstar brought home a not too shabby $23 million round (its first), German social games company woogo landed $24 million and Accel Partners, fresh on the heels of its $42 million round with Rovio, locked down a $12 million investment in another up-and-coming Finnish gaming company, Supercell.
On the M&A front, Zynga continued its steady march on the deal making path with the acquisition of DNA Games and the team behind the popular Cocos2D games engine, and Rovio completed its first major acquisition, adding the Finnish animation studio Kombo to its stable of artists, engineers and developers. Chinese games company Perfect World acquired Star Trek Online maker Cryptic Studios from Atari for €35 million. Electronic Arts hit a double this month with two acquisitions (no doubt trying to keep up with Zynga’s pace), announcing the purchase of Firemint on May 3, which will be folded into EA Interactive, as well as the acquisition of Mobile Post Production, a specialist cross-platform development house. Rounding out the month, News Corp’s IGN Entertainment consolidated its dominant position in games media with the purchase of Hearst’s UGO Entertainment in anticipation of a spin off from News Corp later this year. June is already shaping up to be another exciting month, so let’s see how the rest of the month plays out.
Games M&A Activity
On June 2nd, RockYou announced the acquisition of Australian social games developer 3 Blokes. Founded in 2006, 3 Blokes has developed four social games for the Facebook platform, including their most recent title, Galactic Trader, a space trading and combat game with 200K monthly active users. The team is led by George Fidler, who has previously worked for EA and The Creative Assembly. 3 Blokes will continue to operate independently as a RockYou studio and develop strategy and combat-driven Facebook games. It appears that RockYou, which just brought on a new CEO, is adopting Zynga’s strategy of acquiring small game studios to build talent and games. Earlier this year, the company bought social game studio Playdemic.
On June 1st, Angry Birds developer Rovio announced the acquisition of leading Finnish animation studio Kombo, for an undisclosed sum of cash and stock. The acquisition of the Helsinki-based studio strengthens Rovio’s animation production capabilities, which could be used both to support games development and to improve Rovio’s presence in other media including TV and film. Earlier this month, the company announced that Angry Birds has been downloaded more than 200 million times, cementing its title as the most popular game of the smartphone era, and the most popular game of all time, eclipsing Tetris by almost 2-to-1.
On May 31st, Chinese games company Perfect World announced the acquisition of Star Trek Online maker Cryptic Studios from Atari for €35 million ($50 million). Cryptic Studios developed the innovative and successful City of Heroes, as well as its subsequent expansion, City of Villains. Both titles garnered numerous awards from leading publications including GameSpy’s Game of the Year award in 2004. After developing both City of Heroes and City of Villains, Cryptic Studios was purchased by Atari in 2008 and created Champions Online and Star Trek Online. The deal highlights the expanding ambitions of Chinese games companies outside of China. Perfect World’s Chairman and CEO, Michael Chi, said that the acquisition will help it further penetrate into the U.S. and global online game markets.
On May 18th, ngmoco (DeNA) acquired Rough Cookie, the Dutch mobile games developer behind hits such as Star Defense, We Farm and We City. Rough Cookie will help DeNA to establish a presence in Europe as the company readies the global launch of its social network for mobile games, Mobage. Rough Cookie was founded 2008 by Wouter ten Brink, Danny Hoffman and Erik t’ Sas, to focus on smartphone games development. Star Defense was an early success; after ngmoco presented the game on the WWDC keynote stage, the title became a top-selling App Store game in the summer of 2009. The game earned Rough Cookie a Dutch Game Award as well as a mention in the Top 50 iPhone Developers of the Year, by Pocket Gamer. Terms of the deal were not announced.
On May 18th, Zynga announced the acquisition of DNA Games, a social games developer based in San Francisco. DNA saw success with its first Facebook game, Casino City, which reached 2.4 million monthly active users at its peak in February 2011. While DNA’s recent titles have been less successful, Zynga seems to be particularly interested in its technology platform and approach to A/B split testing and feature iteration, which includes detailed tracking of test results and player behavoir across gender and age demographics as well as region and time of day. The deal is Zynga’s 14th acquisition in the last 12 months.
On May 11th, WebMediaBrands acquired Inside Network, a popular research provider and blog network for social and mobile app developers, in a cash and stock transaction valued at $14 million. Inside Network’s properties include the widely-read blogs Inside Facebook, Inside Social Games and Inside Mobile Apps; the Inside Social Apps conference; and the research products AppData, Inside Virtual Goods, and the Facebook Marketing Bible. The company’s six full-time employees in Palo Alto will join WebMediaBrands. During the last several years, WebMediaBrands has built up a strong portfolio of social media-focused news sites and conferences. With this acquisition, it will now arguably be the leader in the social media news market, especially when it comes to Facebook-specific news.
On May 9th, Zynga acq-hired Ricardo Quesada and Rolando Abarca, key contributors to the popular Cocos2D open source games engine for iOS. Cocos2D is widely used by small developers as well as larger players, such as Atari, ngmoco and Gamevil, in the development of mobile games for iPhone, iPod Touch, iPad and Mac. Terms of the deal were not announced. Zynga is continuing to build out its presence in the mobile games space through a combination of recent hires and acquisitions including last month’s purchase of UK mobile developer Wonderland Software and the acquisition of mobile developer Floodgate Entertainment in March.
On May 6th, News Corp’s IGN Entertainment announced the acquisition of Hearst’s UGO Entertainment, expanding its reach over online videogame news. IGN will now operate its existing properties along with UGO.com, 1UP.com and UGO’s entire network of owned and affiliated properties. Together, the properties reach a global audience of more than 70 million monthly visitors. The acquisition comes as rumors continue to heat up that News Corp is preparing to spin off IGN as a separate company during the next few months. The business is growing rapidly and is expected to bring in $10 million in profit this year on revenue of $100 million.
On May 3rd, Electronic Arts announced the acquisition of Firemint, a leading mobile game developer based in Melbourne, Australia. Firemint is the developer behind popular games such as Flight Control and Real Racing for the iPhone and iPad. The 60 person company was founded in 1999 by CEO Robert Murray, and will now become part of EA Interactive, the division of Electronic Arts focused on digital business that includes EA Mobile, Pogo and social gaming outfits like Playfish. EA also simultaneously announced the acquisition of Mobile Post Production, a specialist in cross-platform development and porting of games for smartphones. Terms of the deals were not disclosed.
Games Investment Activity
Wooga, a leading German social games company, landed a $24 million round of funding led by Highland Capital Partners, Tenaya Capital and existing investors Balderton Capital and HV Holtzbrinck Ventures. Founded in 2009, wooga launched its first free-to-play brain training game, Brain Buddies, when the team was just five people strong. Today, the company employs a team of 85 people in Berlin and is the third largest social games developer on Facebook with 30 million monthly active users. The team has created a number of popular social games, including Monster World, Diamond Dash and Bubble Island. The investment was announced on June 1st.
Austin-based games developer Portalarium raised a second round of financing from m8 Capital in the UK and Peter Thiel’s Founders Fund, bringing the total raised by the company to $3.6 million. Portalarium was launched by Richard Garriott, the well-known game developer who sold his two previous companies: Origin, sold to Electronic Arts in 1992 and Destination Games, sold to NCsoft in 2001. In the past year, the company released two games, Port Casino Poker and Port Casino Blackjack, which were created to quickly build out its backend technology and start interconnecting a player network across platforms and social networks. The funding comes just as the company is gearing up for the launch of a brand new and unique social media game. The investment was announced on June 1st.
Kabam, one of the leading developers of hardcore social games, raised $85 million in Series D financing led by Google Ventures and Pinnacle Ventures. The company has grown from 25 to over 400 employees in the past 16 months on the strong performance of its Facebook game lineup, Kingdoms of Camelot, Dragons of Atlantis, Glory of Rome and Global Warfare. Kabam’s user base of 7.2 million monthly active users is a fraction of Zynga’s 250 million, but Kabam’s users spend significantly more time and money playing its games than typical social games users. With the Series D investment, Kabam is expected to continue to expand its games portfolio, further international growth (particularly in Asia) and make additional acquisitions. The investment was announced on May 26th and comes just four months after the company raised $30 million in a Series C round in January 2011.
Peak Games, the largest and fastest-growing social gaming company in Turkey, Middle East and North Africa, raised $5 million in Series A financing led by German venture firm Earlybird Venture Capital. The company has 10 million monthly active users through a mixture of original IP, including Okey, the most popular game in Turkey, Okey Plus and Ikon Kiz (FabGirl), and licensed games such as Komsu Ciftlik. Part of Peak Games’ success has been driven by how the company reaches underserved markets with localized and culturally-specific games that employ strong engagement and monetization strategies. The investment was announced on May 25th.
Finnish social games developer Supercell raised $12 million in a funding round led by Accel Partners. Klaas Kersting, founder of German browser-game giant Gameforge also invested in the round, as did London Venture Partners, one of Supercell’s previous investors. Supercell is developing titles for gamers who want online browser-based games that are bigger in scope than the most social games, but less involved than massively-multiplayer games. The company’s first game, Gunshine.net, came out of closed beta in May and grew rapidly from 30K to 350K monthly active users during the month. The company is led by Ilkka Paananen, who previously founded Finnish mobile games developer Sumea and sold the company to Digital Chocolate in 2004. The investment was announced on May 25th and represents Accel’s second financing this year of a Finnish games company. In March, Accel co-led a $42 million round in Finnish mobile developer Rovio.
CrowdStar, a leading social games developer, closed a $23 million round led by Intel Capital and Time Warner with participation from China’s The9 and NVInvestments. CrowdStar is the fifth largest social games developer on Facebook with 29 million monthly active users. Its most popular games include It Girl, Happy Aquarium and Happy Pets. The company currently has over 100 employees and will use the funding to double headcount this year as well as grow through acq-hires in the mobile and social gaming spaces. CrowdStar has never before taken in institutional funding and previously funded all of its growth through operating profits. The investment was announced on May 23rd.
Canadian mobile games publisher Fuse Powered raised $2 million from BlackBerry Partners Fund and NFQ Ventures. Fuse is a mobile game publishing company formed in 2009, with a focus on maximizing customer value and game discovery through the use of propriety tools and real-time analytics software. Fuse offers analytics tools to support its mobile development partners, such as a real-time game performance dashboard and data-driven business plans. The company will use the investment to expand staffing, technology infrastructure, partnership support and business development. The investment was announced on May 19th.
London-based online games publisher We R Interactive raised $5 million in funding from private investors including Paul Fitzsimons, ex-media sector partner at Apax Partners and Elio Leoni-Sceti, former CEO of EMI Music. The company’s debut game, I AM PLAYR, is a point-of-view soccer game that allows users to experience life through the eyes of a professional soccer player. It fuses live action video, interactive story-telling and first-person perspective game play to create an original narrative, where the storyline is dictated by the user’s decisions and actions both on and off the field. The investment was announced on May 13th.
Social games developer Funzio closed a $20 million Series A round led by IDG Ventures and China-focused investment firm IDG Capital Partners. The company launched its first game, Crime City, in September 2010, which quickly became one of the top Facebook games of the year with 7 million monthly active users. Building on the success of Crime City, Funzio plans to use the funding to triple its team this year and scale its business so that it can launch games faster and develop them in parallel. The investment was announced on May 10th.
Row Sham Bow, an Orlando-based game development studio creating games for social networks, raised $3 million in funding from early-stage venture capital firm Intersouth Partners. The company was established by Philip Holt, who was previously VP, President and GM of EA’s Tiburon studio and SVP of Product Development for THQ, and Nick Gonzalez, who also spent time at EA’s Tiburon studio. The investment was announced on May 9th.
Cerca Trova Advisors
Cerca Trova is an investment banking and strategic advisory firm focused on opportunities in technology, mobile and digital media including gaming and interactive entertainment. We provide M&A advisory, capital raising and strategy consulting services to companies at all stages of development. Our principals are experienced M&A practitioners and industry insiders with deep domain expertise and decades of experience working with both established and growing companies and a clear understanding of the issues and challenges that they face. Cerca Trova has offices in San Francisco, Helsinki and Beijing. www.cercatrovaadvisors.com
According to Dow Jones VentureSource, there were 81 announced funding deals in the first quarter of 2011 accounting for $875 Million.
- $6.4 billion was invested in 661 deals in Q1 2011
- This is a 35% increase in the amount of investment from the same quarter last year
- 5% less deals were done though meaning investors are becoming a little more selective
- 112 game companies raised a total of $936.8 million in 2008
- 115 game companies raised a total of $663.1 million in 2009
- 91 game companies raised more than $1.05 billion in 2010
- That’s $2.064 billion in capital raised over the last three years
Red Herring rated the top 100 Global Venture Capitalists. Here’s the list:
1. Accel Partners
3. Index Ventures
4. Sequoia Capital
5. Kleiner Perkins Caufield & Byers
7. Insight Venture Partners
8. Draper Fisher Jurveston
9. Sofinnova Partners
10. Matrix Partners
11. New Enterprise Associates
12. Bessemer Venture Capital
13. Greylock Partners
14. Wellington Partners
15. Khosla Ventures
16. Norwest Venture Partners
17. Benchmark Capital
18. TVM Capital
19. Battery Ventures
20. Lightspeed Venture Capital
21. August Capital
22. Pitango Venture Capital
23. GRP Partners
24. IDGVC Venture Partners
25. Alta Partners Read More →
Channel 4 in the UK is looking to games to offset their viewership deficit. The channel has setup a £4.5m fund – half of which is being used to fund independent UK game developers including Tuna Technologies, Beatnik Games, Zombie Cow Studios, Six to Start, Preloaded and Littleloud. The company is funding projects up to £800,000 in size.
The second annual Funding & Investment Summit for B2C Digital Business will take place on July 17, 2009, in London. The conference is focused on venture capital and funding for digital businesses, with a particular emphasis on digital entertainment companies.