The massive success of “Pokémon Go” back in July 2016 took the world by storm. Gaggles of people running around to catch Pokémon became a common sight in some of the world’s busiest cities and popular landmarks. Now, the company behind the smash-hit game is looking to land a massive valuation.
Niantic Labs hasn’t stopped with Pokémon. After catching all the fans, they set their sights on another fandom: Potterheads. Their newest, Harry Potter themed game, “Wizards Unite,” is scheduled to launch in 2019. Along with it, they are eyeing a massive round of funding totaling $200 million to boost their company’s valuation.
Big Money in the Gaming World
Niantic Labs would hardly be the first to land a larger than life valuation following the release of a successful game. Epic Games, developers of “Fortnite,” found themselves on the receiving end of an enormous $1.25 billion valuation. This, of course, is thanks to its wildly popular “Fortnite: Battle Royal” title released across all major gaming platforms in September 2017.
Now, Niantic is looking to follow suit. While not as popular as it was during its initial release, “Pokémon Go” still brings in lots of revenue to its creators. In November, it brought in upwards of $80 million from in-game microtransactions on iOS and Android. If Niantic is able to secure their goal of $200 million in additional funding, it would raise their total valuation to a whopping $3.9 billion.
Crowdfunding All the Way
The developer’s latest round of funding is led by venture capital firm IVP with more money being added by Samsung and aXiomatic Gaming. As of now, the San Francisco based developer has not announced what the funding will go towards.
However, between their ongoing support for Pokémon Go and their upcoming Harry Potter game, there are plenty of possibilities. According to a Wall Street Journal article, the company could be working on developing games for other franchises, but these remain unnamed.
Other game developers, like the team behind “Star Citizen,” have successfully used crowdfunding to raise an identical amount in the past. Still, the endeavor by Niantic encompasses more than just one game.
As efforts continue to help grow the company, fans and employees are excited about the prospects of Niantic becoming a giant in the mobile gaming world. With “Pokémon Go’s” latest winter event kicking off this week, fans will be more excited than usual. Trainers will be able to earn bonuses, hatch eggs more quickly, and encounter more Pokémon from the Sinnoh region.
So whether you’re catching those Pokémon this holiday season or are waiting to start casting spells in the Wizarding World, Niantic Labs is a company to keep an eye on.