Dream Games has announced that the company has raised $255 million in new funding, giving it a valuation of $2.75 billion. The funding round was led by venture capital firms Sequoia, Andreessen Horowitz and Benchmark, with participation from several other investors. This makes Dream Games one of the most valuable companies in the gaming industry.
In this article, we will discuss the details of the announcement and what it means for the company and its investors.
Overview of Dream Games
Dream Games is an independent game studio founded in 2017 that focuses on creating immersive story-driven games with meaningful and long-term impact. We strive to create beautiful, world-class content that sets the industry standard for creativity and innovation. Through a thoughtful approach to design, art, and technology we create games with unparalleled depth and creative expression.
Dream Games’ founding team consists of experienced game developers from Blizzard Entertainment, Activision, and Electronic Arts who have worked together for years in several reputable studios worldwide. Our founders have amassed decades of experience working on critically acclaimed games such as the Call of Duty franchise, Destiny 2, Overwatch 2, Diablo 3: Reaper of Souls, World of Warcraft Classic Edition and Hearthstone®: Heroes of Warcraft™.
With a strong portfolio of critically acclaimed projects already under its belt – and numerous projects currently in development – Dream Games has become one of the most sought after independent game studios in the gaming industry today. Investors include Sequoia Capital China, Andreessen Horowitz (a16z), Benchmark Capital and Savage Brick Entertainment – all leading venture capital firms actively investing in gaming start-up companies.
Overview of the fundraising round
Dream Games, an online game developer and publisher, recently closed a successful fundraising round with individual investments from Sequoia Capital, Andreessen Horowitz, and Benchmark venture capital firms. The undisclosed amount raised set a new industry record for a pre-Series A round.
Dream Games was founded in 2016 by two experienced gaming industry veterans who previously worked at Electronic Arts, Activision Blizzard, and Bandai Namco Entertainment. Their mission to create cutting-edge games accessible to every type of gamer regardless of age or platform has attracted millions of users within the first year of launching their first title. The funding will be used to expand operations and launch additional titles.
The initial round marks the beginning for Dream Games as it embarks on its mission to become the go-to platform for casual and hardcore gamers. With potentially groundbreaking titles coming soon and further investments from these major investors, Dream Games looks poised to revolutionise the gaming industry for years to come.
Dream Games raises $255m at $2.75bn valuation
Dream Games recently raised $255 million at a $2.75 billion valuation. This impressive funding round was led by some of the biggest names in venture capital such as Sequoia, Andreessen Horowitz, and Benchmark.
These venture capitalists have put their trust in Dream Games and are giving the company tremendous confidence.
Sequoia Capital is a venture capital firm based in Menlo Park, California that has funded businesses such as Apple, Dropbox, Zappos, Airbnb and Oracle. Founded by Don Valentine in 1972, they are well-known for their long-term approach to investing.
Sequoia’s initial investment in Dream Games in 2011 was 2 million dollars and they now hold a board seat represented by Roelof Botha. As a venture capital firm, Sequoia is focused on early stage investments and often uses their expertise in technology to help the businesses they fund navigate the changing landscape in the tech space.
Sequoia continues to invest heavily in Dream Games giving them an infusion of cash for product development and marketing.
Andreessen Horowitz (a16z) is an American venture capital firm specialising in investing in technology-based businesses. With offices on the two coasts of the United States, the firm is perhaps best known for its ability to help build its investee companies from early development stages.
Since its inception in 2009, Andreessen Horowitz has become a major player in the venture capital space, investing both early and late-stage deals with a focus on technology and software. Andreessen Horowitz has invested funds into over 750 companies in total, with notable investments including Airbnb ($450 million Series F), Slack ($542 million Series H), Jawbone ($49.3 million Series G) as well as somewhat smaller investments into budding startups such as Glyph ($7.5 million seed).
Apart from tech giants they have worked with, Andreessen Horowitz invests heavily within industries like Healthcare, Fintech and Cleantech. They are currently supporting over 300 companies in their portfolio with access to their resources be it human or financial capital. This makes them an attractive target for startups who would like to benefit from their vast network of investors and mentors who can offer support and advice along their journey.
Benchmark is a venture capital firm with offices in San Francisco, California and Menlo Park, California. The partners at Benchmark have backed tech giants such as Uber, Twitter and eBay; they also have investments in smaller companies like Dropbox, WeWork, OpenTable, Yelp and Zillow. They focus on early-stage investments across the technology sector including enterprise software, ecommerce & marketplaces, finance & payments infrastructure, health technology and consumer-focused applications.
Founded in 1995 by Bruce Dunlevie, Bill Gurley and Bob Kagle — three former venture partners at Morgan Stanley — Benchmark has since completed over 300 investments. Their team includes twelve experienced investors with varying backgrounds ranging from deep technical expertise to decades of startup leadership experience. They are known for their unique perspective on quickly evolving markets paired with an intelligent approach to the investment process.
Dream Games, a mobile gaming company, announced that it has raised $255 million in a new financing round. This resulted in a company valuation of $2.75 billion, with Sequoia, Andreessen Horowitz and Benchmark as its investors.
Let’s take a closer look at Dream Game’s current valuation.
Details of the fundraising round
Dream Games announced a $90 million fundraising round in April 2021, led by investors including Sequoia, Andreessen Horowitz, and Benchmark. This is the first major fundraising cycle for the company since it launched its first mobile game “Slime Dungeon” in 2019.
The valuation placed on Dream Games during the funding round was USD 1 billion, making it one of the world’s most highly valued mobile gaming startups. This marks a substantial increase from when Dream Games raised a $25 million Series A round valued at approximately $400 million just over a year ago.
The investment will support Dream Games’ long-term vision to become a global gaming platform leveraging their growing user base and international success stories. They plan to expand their gaming portfolio of popular titles and build out new IPs with global hit potential over the next few years. In addition, they will continue investing in technology advancements around AI and analytics that are core strengths of their development team.
Analysis of the valuation
When evaluating the valuation of an investment in Dream Games, several factors must be considered. First, the level and type of investor interest is a primary driver of the value, as investors add confidence in the direction and potential for the company. With Sequoia, Andreessen Horowitz and Benchmark already investing, other investors may be encouraged to join their ranks.
Another factor to consider is pricing versus value – at what rate is an equity stake purchased compared to its underlying value? This can also be seen by considering if there are any restrictions on future liquidity events.
Additionally, the size of investment rounds can signify how much attention a company has generated with investors, predicting future success or failure. If major investors have chosen larger investments in one company relative to another, they may feel more confident in this business’s future than its competitors.
Finally, the total and potential revenue growth should also be considered when analysing a valuation. One can determine if a valuation reflects actual or anticipated financial performance by assessing such things as current financial performance and projected sales growth rate.
Dream Games’ recent investment from Sequoia, Andreessen Horowitz, and Benchmark is an important milestone for the gaming industry. With this investment, Dream Games has become one of the most valuable gaming companies in the world and has raised over $255 million at a $2.75 billion valuation.
This news will have major implications for the gaming industry and will likely inspire more investments in the future. Let’s analyse the possible impact of this investment.
Impact on Dream Games
Dream Games’ investors include some of the most renowned venture capital firms in Silicon Valley. Having Sequoia, Andreessen Horowitz, and Benchmark as investors has positively impacted Dream Games since the first announcement of their involvement. Access to their resources and expertise provides a financial boost and tremendous visibility for the brand. In addition, working with these firms gives Dream Games access to some of the industry’s best advisors who can help shape their business strategy and provide guidance via connections with other investors, customers, and partners.
The additional capital also allows Dream Games to invest in new projects or products which could further expand their business reach. In addition, the resources available from these prominent investors could add value to Dream Games in many ways, from deeper customer insights to helping identify strategic partnerships that accelerate growth.
Overall, having well-known venture capital firms such as Sequoia, Andreessen Horowitz, and Benchmark as part of Dream Game’s portfolio has proven beneficial for their success and will likely continue to be so for the foreseeable future.
Impact on the industry
The news of Dream Games securing investments from three well-known venture capital firms—Sequoia, Andreessen Horowitz, and Benchmark—has created a buzz in the gaming industry. With the new game’s success, investors are recognizing the potential for video games to create lasting businesses with long-term impact.
The announcement indicates that venture capitalists are paying close attention to blockbuster gaming successes and viewing Dream Games as poised to become one. Moreover, Dream Games’ success also resonates with individual investors, who view these investments as worthwhile and potentially profitable. As a result, video game companies are becoming increasingly attractive investments for diversifying their portfolios.
Dream Games’ high-profile investment is set to have a lasting impact on the gaming industry. As more venture capital funds enter the world of video games, more companies will begin developing innovative apps and games that will challenge traditional industry norms and bring even more excitement into an already thriving space. Moreover, this influx of VC money will likely spur research into new technologies such as virtual reality and augmented reality that could further transform how people view video games as entertainment. With Dream Games’ backing by top venture funds, it’s clear that video games have come a long way from being seen as frivolous hobbies — instead, they’re now recognized for their potential financial returns and cultural reach.
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