Another video game company is taking off.
The popular game developer Scopely has raised up to $125 million in a new round of financing that values the company and the money at an estimated $795 million, according to a fundraising document obtained by PitchBook — a valuation that may seem high but describes a company that is profitable and says it has more than 125 million active players.
The Los Angeles-based company specializes in developing and distributing free mobile games and is behind hits like The Walking Dead: Road to Survival and WWE Champions. Not all venture capitalists are hot on the gaming sector, but Scopely has attracted past financing from firms like Greycroft Partners and Revolution, led by AOL co-founder Steve Case.
Some video game companies have proven to be quite valuable, like the private company Machine Zone or public company Activision Blizzard.
The investors behind this new round of financing could not be learned. The investment and valuation figures reflect what the company is merely now authorized to raise — the company could always raise less.
Scopely declined to comment.
hahahahaha very familiar with this
Expected a pithy “Keep Surviving!” to be honest
So, anyone that is familiar with raising capital, this means they are not managing cash well. They raised a round last year June 2017 and another $130M is concerning. With revenue, they should be able to stop raising rounds. It means they are strapped for cash and can show how an influx would equate to more capital for investors later on. So even with the $795M valuation at a 2x revenue, they are not managing cash well. The last round was $60M in June https://techcrunch.com/2017/06/15/mobile-gaming-company-scopely-raises-60m/ they said in this article they would reach 125 million users and they met it so most likely went back to the tap with this figure.
I think they kind of overdid it with 125milion active players, cause not every user account that was once opened is active. Look at this game and try to multiply it with number of regions here (disregarding the fact that there are multiregion accounts) and I doubt we’ll get to even a 125k active users, cause I doubt there are that many.
Wait, I thought revenue is dropping?
Did they really compare Scopely to Activision Blizzard? Wtf is going on here?
Very interesting. It makes it easier to understand why actions taken seem to solely favor profits over building long term brand loyalty. They’re desperate…
It’s quite possible the funds they acquired in 2017 was used for infrastructure upgrades. But I have a hunch they are prepping Scopely to be sold off for mad profits for its investors!
I imagine an “active user” is just someone who logs in daily. How many people in your faction have logged in today to get their login streak but done little else. Clever marketing which all game companies use in fairness
They can’t get that number with those casuals you mentioned. Probably they define active as “who logged in once in 2 years”.
Well they do have more than just this they have star trek timelines and wheel of fortune are the 2 I know of
No way 125 million people have ever even played one of their games once. That’s literally half of America. Nearly everyone I’ve ever met say that they’ve never heard of rts, or scopley.
I hope so then maybe we will get owners that care about there customers !!!
God bless America but their games are played all over the world. 125 millions is not that much.
Yeah I know I just wanted to put the number in context, not acting like all or even most players are from the U.S.
Not even with numbers all over the world…