The worldwide gaming boom is currently providing increased revenue for many companies. There are some predictions suggesting the global revenue in this industry could have climbed to over $159 billion in 2020. In this positive environment, a couple of upcoming gaming companies have recently raised large sums of money to kick-start their growth plans.
Mobile Premier League Raised $95 Million
Mobile Premier League (MPL) is a platform that supports eSports and mobile gaming. They have recently completed the Series D funding round and raised a total of $95 million in it, taking the total raised since they began in 2018 to over $225 million. This fresh injection of money means that they now have a valuation of $945 million and are close to being considered as a unicorn.
Among the leading names in the funding round were Moore Strategic Ventures and Composite Capital, along with the likes of RTP Global and Base Partners. Sai Srinivas is the CEO and co-founder of MPL, and he said that they are aiming to provide a “robust platform with the best features”. This is with a particular focus on introducing games made in India and helping Indian gamers. To date, their platform has more than 60 million users spread across India, while they also have a reported 3.5 million gamers using their services in Indonesia. It is believed that they will use part of the new funds to create new eSports tournaments, both in India and on an international basis.
Mountaintop Completed a $5.5 Million Seed Round
A group of industry experts such as Oculus co-founder Nate Mitchell and Matt Hansen of Double Fine created Mountaintop. This is alongside people who have worked for Epic, Ubisoft, Blizzard and other big names. They aim to create challenging single-player and multi-player video games in an inclusive, independent setting.
The recently completed seed round saw them pick up a total of $5.5 million in funding from friends and family. At the same time, it was confirmed that their first game will be a PvP shooter, following in the hugely successful footsteps of titles such as Fortnite and Overwatch. At the time of writing, there have been no details revealed of what the game will be about or which platforms it will be available on.
Their initial team of five has now grown to 20. It should be noted their plan to have a diverse, inclusive team appears to have not yet fully taken shape, as the team includes 19 men, 18 of whom are white. Mitchell pointed out that their target is a headcount of around 50, so they have “room to grow into that promise”. As with any start-up, the IT strategy they adopt will be crucial.
Other Gaming Companies That Are Growing
MPL and Mountaintop are far from the only gaming firms to set their sights on growth this year. In the case of Roblox, incredible growth in the last year has seen it valued at $29.5 billion ahead of an upcoming direct listing of their shares on the New York Stock Exchange.
The Roblox Accelerator and Incubator programmes expect to create far more content soon, while they raised $520 million at the start of 2021 by selling shares at $45 each. Their initial plans for an IPO have been changed to a direct sale. So, we will need to wait a bit longer to find out what price each share will be worth on the open market.
Swedish company NetEnt is listed by VegasSlotsOnline among the leading developers of casino games, alongside Microgaming and Pragmatic Play. They are on the NASDAQ OMX in Stockholm and their catalogue of over 1,600 top games includes titles such as Asgardian Stones, Butterfly Staxx and Divine Fortune. Currently, they feature their games on casinos like Dunder and Spin. Considering their popularity, this is reflective of the overall health of the online casino industry, to the extent that review sites are needed to highlight the best bonuses to customers. This success is likely due to mobile gaming, as players can game on many devices without issue.
One major development in the growing industry has been the move allowing licensed casinos in more American states. This has led to NetEnt gaining an important foothold in the US market thanks to their games being approved by the Michigan Gaming Control Board in early 2021.
Unlike the other companies that we have look at here, there are no signs of them seeking a fresh injection of funds. They earned $60 million in revenue in the third quart of 2020, which was double the amount they earned for the same period the year before.
With gaming now a huge industry in just about every corner of the globe, we can expect to see more companies searching to find new ways to raise money for their future growth.