Scopely, a 2011 Los Angeles-based mobile gaming startup, recently elevated itself as the newest tech unicorn in the American market.
After receiving $200 million from an investment round led by NewView, the startup’s value has grown to a remarkable $1.7 billion. Now, the company intends on using its new funds to continue acquiring lucrative games to offer its players.
Appealing to Investors
Looking at previous years’ funding, Scopely acquired $55 million in 2016, $60 million in 2017, and $100 million in 2018.
2019’s $200 million doubles the startup’s investments from the previous year. As such, it’s evident that the mobile game company has become increasingly enticing to investors. Scopely’s high-performing games have a lot to do with its success. However, the investment boom is also largely thanks to the technology behind its platform.
Scopely’s proprietary gaming network allows the company to monitor and react to live user data. This gives its developers the ability to better understand and optimize games to the desires and needs of players.
According to co-CEO Walter Driver, “Our technology platform is about optimizing free digital experiences for the largest amount of players possible… We see the future of gaming as free live services that give users choice and agency of how they want to play.”
Scopely’s Path Forward
As the producer of games like “Looney Tunes World of Mayhem,” “Star Trek Fleet Command,” “The Walking Dead: Road to Survival,” and a digital version of “Yahtzee,” the company has already attracted millions of players.
Scopely already brings in over $400 million in annual revenue. In fact, the six games that the company already has available should gross another $100 million in lifetime revenue. None of this accounts for the additional entries that the company has on the way.
To maintain momentum, Scopely is not only looking for intellectual properties to acquire, but developers to create its games too. For instance, the startup’s newer releases were actually developed by Digit Game Studios, a separate company that Scopely recently acquired. Other gaming studios have been offered investments from Scopely as well. Ultimately, the company hopes to acquire a larger staff of skilled independent game developers to call upon for its projects.
Since its platform and methods have worked so well so far, this seems like a safe strategy to stick to. Meaning, as Scopely continues adding enticing titles to its portfolio and acquiring more game studios to bring them to life, the startup’s market performance—and appeal to investors—probably won’t slow down any time soon.