News

Top grossing western developer Supercell now valued at $800 million

Top grossing western developer Supercell now valued at $800 million
When you're hot in the mobile games space, you're really hot.

That's the conclusion from Supercell's latest funding round.

The Finnish developer of Clash of Clans and Hay Day has reportedly sold a chunk of its stock to existing investors Institutional Venture Partners, Atomico and Index Ventures.

According to TechCrunch, which broke the story, Supercell is now valued at $800 million, with the new investment round raising between $100 to $150 million for between 16 to 20 percent of company equity.

The company's first VC round gained it $12 million from the likes of Accel Partners back in May 2011. Back then it was developing games for Facebook.

Get cash when you don't need it

The background to the move is Supercell's amazing ability to make cash.

It only has two games available, and only on iOS, but is generally thought to be generating more than $1 million per day.

Ironically, this means that the 90-strong team doesn't actually need the investment in terms of operations, marketing or user acquisition.

Instead the deal more likely occurred to enable the founders and original set of investors to cash out with serious money, while providing the larger venture capitalists more stability in terms of their ownership for whatever happens next to the company (especially if it decides to IPO in the medium term).

The only other alternative would be for Supercell to start making some serious acquisitions with the cash to boost its position in a very fast growing market, although this seems more unlikely.

editor-at-large

A Pocket Gamer co-founder, Jon can turn his hand to anything except hand turning. He is editor-at-large at PG.biz which means he can arrive anywhere in the world, acting like a slightly confused uncle looking for the way out. He likes letters, cameras, imaginary numbers and legumes.

Comments

No comments
View options
  • Order by latest to oldest
  • Order by oldest to latest
  • Show all replies
Important information

This site uses cookies to store information on your computer. By continuing to use our site, you consent to Steel Media's privacy policy.

Steel Media websites use two types of cookie: (1) those that enable the site to function and perform as required; and (2) analytical cookies which anonymously track visitors only while using the site. If you are not happy with this use of these cookies please review our Privacy Policy to learn how they can be disabled. By disabling cookies some features of the site will not work.