Dundee mobile game developer Outplay Entertainment is getting set to deliver what its new backer called a “full pipeline of global releases” after picking up $5 million in fresh venture capital funding.
The company said it will use the cash boost from a raise led by investment management firm Oxford Capital which represents private investors, family offices, and pension funds to support a string of new hires and provide the flexibility it needs to develop world-class titles.
The fund-raise follows similar investments made by Pentech Ventures and the Government-owned Scottish Investment Bank, each of which also gave the firm further backing during the new funding call.
Oxford will also take a seat on the board of the Seabraes-based company, which is managed by co-founders and industry veterans Douglas and Richard Hare.
Chief executive Douglas Hare said the investment marked the start of the “next stage” in the company’s development, and the process had already given his team some pointers.
Successful Outplay releases to date include the popular Bubble Blaze, Word Trick and Monster Legacy, a title which was selected by Apple as Editor’s Choice when it was released in March.
Mr Hare said revenue generation opportunities were growing as its free-to-play games become increasingly popular and technology continues to advance.
“Oxford Capital has already demonstrated some great insights into our business as part of the investment process,” said Mr Hare.
“Adding their sector and function-specific experience to our talented board will help us to significantly enhance our strategy and reach.”
He said new disciplines were evolving fast, particularly in the field of analytics and business intelligence, and he expects the cash injection to allow Outplay to support all stages of the business including post-release upgrades in the coming months.
The company will boast a workforce of around 70 when its most-recent tranche of recruitment is complete in a few weeks’ time.
“The global games market is at an exciting point for any new investor,” Mr Hare added. “Market growth is accelerating, consumers are proliferating, device capability exploding, and in-game monetisation opportunities are following in lock step.
“We look forward to embracing future opportunities with Oxford Capital on board.”
Martyn Holman, investment director at Oxford Capital, said his firm was “truly excited” to increase its exposure to a rapidly-evolving and fast-growing market, estimated to be worth more than $35 billion worldwide.
“We have for some time been seeking an appropriate opportunity to invest in the segment, but in a market with such a diversity of consumer choice it has taken a company of truly differentiated capability for us to commit,” he said.
Mr Hare and his brother have considerable pedigree in the industry, having jointly established console game developer The Collective in the US following a spell with Virgin Interactive.
Following a merger, The Collective became Formation 9 Entertainment at the time regarded as one of the largest games developers, if not the largest, in the world.
The duo opened Seabraes-based Outplay in early 2011 with the help of a £2.25m regional selective assistance grant from business support agency Scottish Enterprise, and in time expect to create up to 150 posts in the city.
Its most recent investment comes after a further $4m was ploughed into the company by Pentech and the Scottish Investment Bank in late 2012.