Scottish games developer moves up a level
$4m investment will take Scottish video games to 1 million daily users
Dundee-based video games developer, Outplay, has secured a $4 million investment from Scottish Venture Fund partner Pentech Ventures and the Scottish Investment Bank.
The fresh injection of funding will allow the ambitious company to take a range of new games to international markets, with the aim of securing one million active daily users by the end of 2013.
The company, which was established in late 2010, specialises in developing games for smartphones, tablets and social media websites with current games focused on iOS (Apple), Android (Google) and Facebook platforms.
Building on the recent successful launch of Outplay’s first signature game, Bubble Blaze, the company forecasts that 98% of its sales will be driven by overseas markets by 2014 and plans to create more than 120 new, high-value, game production jobs within the next three years.
Douglas Hare, co-founder and CEO of Outplay, said: “This investment has enabled us to give Bubble Blaze a fantastic launch, which saw it enter the top 10 in a number of countries, including the US and the UK. The funding will support both it and our new titles over the coming months.
“Although the mobile and social gaming sector is growing at an extraordinary rate, and presents an incredible opportunity to companies like ours, it’s also an incredibly competitive environment, so it’s fantastic to have the continued support of Pentech and the Scottish Investment Bank.”
Kerry Sharp, acting director at the Scottish Investment Bank, said: “We are focused on supporting companies like Outplay in high growth areas like digital media and interactive software, where Scottish companies demonstrate a leading edge.
“We are pleased to participate in this further round of funding and will continue working closely with the company through Scottish Enterprise’s account management approach to explore opportunities in this fast-moving international market.”
Eddie Anderson, Partner at Pentech Ventures, said: “Doug and Richard have done a great job over the past 18 months. They have built a really talented game development studio from scratch, released their first three games, and have a range of additional titles slated for release over the next quarter. I’m looking forward to continuing to work with them to help build the business.”
The mobile and social gaming sector is growing rapidly worldwide. Recent figures suggest there are around two billion users, and the current global market is worth around $2.7 billion per year. That’s forecast to increase to over $11 billion by 2015*.
Scottish Enterprise has worked with Outplay since 2010, providing a range of business development support including access to finance via the Scottish Investment Bank’s equity funds and Regional Selective Assistance grant support. In addition, the economic development agency supported the company to secure the right business accommodation to allow for expansion; and provided funding to further develop its international market presence in the US.
*Source: http://www.marketwire.com/press-release/Mobile-Games-Revenues-Surpass-11-Billion-Globally-2015-as-In-Game-Purchases-Overtake-1360813.htm
About Outplay: Headquartered in Dundee, the digital capital of Scotland, Outplay is focused on developing games for rapidly expanding online gaming platforms like Facebook and the new generation of connected mobile devices, which are introducing gaming to an ever-increasing global audience.
Founded in 2010 by industry veterans Douglas and Richard Hare, Outplay brings a wealth of experience to the rapidly evolving world of social and mobile games. Both brothers have over 25 years of experience in the videogames industry. Having started their professional careers in the mid 80s, they moved to Orange County, California in the 90s to work at Virgin Interactive. Along with colleague and friend Gary Priest, they left Virgin In 1997 to found their first independent development studio, The Collective.
In 2005, The Collective merged with Backbone Entertainment, to form Foundation 9 Entertainment. With Douglas and Richard as key members of the senior management team, Foundation 9 went on to secure a significant investment from a large private equity company in 2006 and subsequently grew to become one of the largest independent developers in the world, with more than 800 personnel in 11 studios on three continents.
http://www.outplayentertainment.com/
About Pentech Ventures: Since its inception in 2001, Pentech Ventures has invested in young as well as established software companies headquartered in the UK and Ireland. Investments include companies developing and marketing enterprise software, SaaS solutions and internet technologies, working in applications ranging from digital media, e-commerce, social gaming and mobile advertising to software protection and software verification. The Pentech Partners and Advisory Group Members have gained considerable experience in starting, developing and exiting software businesses, both in Europe and in the US. Pentech utilizes the wide experience of the team, together with our international network of industry contacts, to identify software opportunities with global potential, and to work with these companies to realize that potential. The Pentech Fund is managed by Pentech Ventures LLP, and numbers the European Investment Fund amongst its investors. Pentech Ventures is regulated by the FSA. For further information, see www.pentechvc.com.