On September 14th, 1047 Games announced the company raised $100 million at a valuation of $1.5 billion. This news came after the organization revealed its hit game, Splitgate, had been downloaded over 13 million times.
Splitgate is a sci-fi video game similar to the hit titles Portal and Portal 2. This first-person shooter allows players to run around a virtual world while using portals to instantly move from one place to another in-game.
“This started off as an idea I had maybe 10 years ago after playing Valve’s Portal games,” Proulx said. “I just fell in love with the concept of these two portals players go through portal. I loved Portal and Portal 2. I thought to myself at the time this would be really interesting in other types of games, specifically FPS games, which is what I grew up playing.”
Beta testing for Splitgate began on July 1st. Since then, 1047 Games revealed the beta testing period for this game would be extended indefinitely following the title’s major commercial success.
The Profit‘s Take:
Since May, they have held three fundraising rounds, and the most recent one secured the company $100 million. The game developer space is HOT right now. Game devs are trading at massive premiums. I’m shocked major video game companies like EA and Activision-Blizzard let 1047 raise $100 million instead of trying to buy them out earlier in the year. Their story is fantastic. The company said they struggled to find investors in the first round. Then, in the second round, they secured funding in a single weekend. Finally, 1047 had this recent funding round, where they got to pick and choose who gave them money because this round was over-subscribed. It’s a great time to be a small/indie video game developer. 1047 made an innovative game, and they deserve the success they’re experiencing.