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.
News
Contributing Editor
A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.
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