Scopely Raises $340 Million On A $3.3 Billion Valuation
Some of the largest institutional financing firms, like Wellington Management, TSG Consumer Partners, CPP Investments and funds managed by BlackRock all jumped in on the lst private round for gaming start-up Scopely.
“What we are seeing is that there’s a significant appetite from public market investors to interactive entertainment as a category,” said Scopely co-chief executive Walter Driver. “We were excited to cross over and invest in Scopely.”
These late-stage, traditionally pre-IPO investors joined NewView Capital, Battery Ventures, Greycroft, Revolution Growth and Highland Capital Partners in the funding, which values the company at $3.3 billion.
“Scopely is focused on building the end-to-end publishing capabilities and development capabilities that will result in the longest-term relationships with players for years to come,” Driver said. “This space is evolving really quickly and we have grown exponentially. If we want to be the leading company in the space, we have to be capitalized like the leading the company in the space.”
“Our belief is that over the long term the most valuable companies in this space are going to be fully vertically integrated and own proprietary technology platforms,” he said.
For Scopely, technology development is all about user retention, and developing the publishing capabilities and development capabilities that will help the company and its games stay relevant to an increasingly expanding and increasingly savvy audience of gamers.
“We do think there’s going to be continued innovation of new genres and consumer experience and more convergence and cross-pollination between platforms. Scopely is going to be focused on a player-centric approach rather than a device-centric one,” said Driver.
For Driver and his co-chief executive, Javier Ferreira, Scopely’s growth is based on the way consumers want to be entertained.
“People have found — and investors looking at the space have found also — that people value the connection they’re getting from interactive experiences. It’s not just our relationship with the players, but their relationships with each other,” Driver said. “Inside of most passively consumed media experiences, you don’t have an identity. You don’t have friends.“
Or, to put in more nakedly capitalist terms, “We believe mobile gaming’s rapid growth makes it one of the most attractive categories in entertainment from an investment standpoint,” as Dan Sundheim, the co-founder of late-stage Scopely backer D1 Capital, said in a statement. “We are confident that Scopely’s vision for the future coupled with its strategic approach to creating a vertically integrated game-making ecosystem, differentiated technology platform, and deep relationships with players will continue to cement its status as an industry leader.”