RUMOR: Mobile Gaming Startup Supercell To Raise $100 Million At $800 Million Valuation
Supercell is a Finland-based startup mobile gaming company that is known the games Clash of Clans and Hay Day. Supercell generats around $1.3 million per day from the games, up from the $500,000 per day figure that was reported as of this past October. According to sources with TechCrunch, the company is expected to raise around $100 million at a valuation of $800 million.
When interviewed with PandoDaily, Supercell’s founder Ilkka Paananen said “we view the tablet as the ultimate gaming platform.” He added: “The entire strategy is to create the best possible game experiences on the tablet, and the interesting side effect of that strategy is that we also make the games better on iPhone, because designing the games for a higher spec is also what makes the games better on the smartphones.”
TechCrunch reports that the investors that will be involved in this round include Index Ventures, Institutional Venture Partners, and Atomico.
Creating games that are sustainable on the mobile market is very challenging because there are so many options. Consumers fall out of love with games just as quickly as they start enjoying them. Supercell killed several early games such as Gunshine and Battle Buddies that was not doing very well.
Paananen previously started a feature-phone gaming company called Sumea and sold it to Digital Chocolate in the early 2000s. Given Paananen’s experience, Accel Partners gave Supercell $12 million for a 21.6% stake in the company a couple years ago. This was given to the company even before they launched their first game! With this new round of investment, it is likely that Supercell will expand their team and invest in R&D.