Finding (and funding) the next Supercell: European devs to be boosted by millions in seed funding

London Venture Partners on backing fresh talent

Finding (and funding) the next Supercell: European devs to be boosted by millions in seed funding

Investment specialist London Venture Partners has unveiled a new scheme designed to pump millions in the European games development scene, building on the success achieved with the likes of Supercell.

Detailed to TechCrunch, the 'LVP Seed Fund' has been raised from capital amassed from third party investors, including the likes of Nexon, Wargaming and Zynga CEO Don Mattrick, with the body looking to make between 20 and 25 investments of up to half a million dollars each.

"We believe the greatest amount of value is created at the seed stage," detailed LVP general partner Paul Heydon.

"It's highly risky but we're willing to make those bets because between the three of us we've got 60 years working in the game sector."

European eye

The fund isn't solely aimed at the European market, though Heydon claims the continent is nevertheless the focus, with the Nordic region, the UK and Spain cited as hotspots.

"To date all of [LVP's] investments have been in either Finland, UK, Denmark and Spain," he added.

"We haven't been specifically looking in any geography, it's just that's where the deals have come that we really liked, and we decided to invest in. Going forward [with the new fund], we think the Nordic area there's a huge amount of things happening there.

The Finnish government is incredibly supportive financially.
Paul Heydon

"One of the reasons that we've been excited about Finland - we've done multiple investments there — is not only is there a lot of talent there, the Finnish government is incredibly supportive financially."

Super super Supercell

Heydon did claim, however, that LVP isn't going to "make a decision saying we're going to invest just in the Nordic area, or just here," claiming it is "focused on where the best founders are."

"There's a huge amount of creative talent that's coming out of Europe - there always has been - but historically they haven't had the ability to raise anywhere as much capital as in the US because there just hasn't been the capital," he added.

Naturally, Heydon added that mobile is the sector that is exciting those behind the fund the most right now.

Supercell's most recent hit Boom Beach

"Mobile is continuing to be the fastest growing category by far," he concluded.

"Obviously the best example is Supercell which we invested in — they did almost $900 million in revenue last year... Accel Partners who led their Series A round has said this is the fastest growing company they've ever invested in. And Accel was also in Facebook," he added.

"The ability to scale really really fast in mobile is better than any other platform has ever been before - ever. You can have literally two guys in a garage, make a game, they upload it to the various app stores, push a few buttons and boom, it's available globally. And that ability to scale globally before has never been available, to this extent, so that's really why we're most excited about mobile."

[source: TechCrunch]

Business Development Executive/Staff Writer