PHȲND, a subscription-free cloud gaming platform, announced it has secured a $10 million seed round led by Wellington Management. The oversubscribed round also saw participation from Bessemer Venture Partners, Connecticut Innovations Fund, and Jozy Altidore.
Co-founded by tech and media innovator André Swanston, PHȲND is prepared to make high-quality gaming universally accessible by offering a free-to-play experience on smart TVs and other connected devices. This substantial seed funding will advance PHȲND’s continued development and its highly anticipated 2025 beta launch.
Over 500 million smart TVs capable of supporting a cloud gaming app have shipped globally in the past five years, far outpacing the total of gaming PCs and consoles. And this massive installed base sets the stage for PHȲND’s disruptive entry into the market.
Cloud gaming enables consumers to enjoy video games on any internet-connected device, eliminating the need for expensive gaming hardware while keeping games up to date. And advances in cloud-computing technology and the growth of high-speed internet are driving this market, which is projected to grow at a staggering 38% compound annual rate from 2024 to 2032, according to Fortune Business Insights.
Cloud gaming also opens up a tremendous new advertising opportunity for brands. Video games are often played on a TV or large screen, but they generate a small percentage of their revenue from ads or sponsors, compared to 50% for the broader media sector.
PHȲND connects brand marketers with the big-screen gaming audience through non-intrusive audience-based ads and sponsorships, addressing a longstanding marketing challenge while boosting industry revenues amid rising costs. For consumers, PHȲND provides a compelling value proposition: subscription-free access to high-quality games on devices they already own, unlike other gaming platforms that charge up to $30/month.
Swanston – who previously tranformed targeted ads across smart TVs and smart speakers as the CEO and co-founder of Tru Optik before its nine-figure acquisition, sees a similar trajectory for PHȲND.
PHȲND will make gaming accessible to hundreds of millions of TV consumers who do not own gaming consoles. And at the same time, PHȲND’s analytic and marketing tools enable studios and publishers to engage and retain these potential gaming audiences more efficiently than across legacy distribution methods.
KEY QUOTES:
“A decade ago, many experts claimed subscription streaming services would be the end of TV advertising. Today, advertising is set to become the largest revenue source for streaming TV. Consumers love free content, and an advertising-sponsored gaming platform done right is a win for everyone.”
- André Swanston
“We’re excited to support the PHȲND team in reshaping the gaming experience, and creating powerful new opportunities for players and developers. We expect André and his team to leverage their disruptive experience with connected TV in the gaming sector.”
- Jackson Cummings, Head of Wellington Access Ventures
“PHȲND will not only make gaming more accessible to players without consoles and gaming PCs but also create new exciting opportunities for developers and advertisers. We are excited to support this new chapter in cloud gaming.”
• ⁃ Elliott Robinson, Partner at Bessemer Venture Partners
