Funding Royale: Fortnite Creator Epic Games Just Raised $1.25 Billion
North Carolina-based Epic Games has reportedly raised $1.25 billion in a financing round that values the company at nearly $15 billion, with participation from major investors including Kleiner Perkins and Lightspeed Venture Partners.
The funding round, which data shows is the second largest gaming investment in history, comes on the back of the gaming sensation that is Fortnite. The free-to-play Battle Royale has taken over the gaming world, bringing in hundreds of millions of downloads and over $1 billion in revenue.
Fortnite also recently became the second fastest iOS mobile game to reach $300 million in revenue, doing so in only 200 days.
“We’re excited to partner with the finest minds in the financial, sports, and entertainment communities,” Epic Games founder and CEO Tim Sweeney said in a press release. “This reinforces Epic’s position of leadership in real-time 3D technology, and accelerates our ability to improve the way people play, work, and interact with the world.”
Epic Games also generates revenue with the Unreal Engine 4, which currently fuels games such as Sea of Thieves, Soul Calibur VI, and Dragon Quest XI. Additionally, the company recently expanded into esports and announced earlier this year that it would be devoting $100 million to tournament play for the first season of Fortnite competition.
The $15 billion valuation places Epic Games among the world’s largest video game developers, as the major publicly traded video game companies like EA ($29 billion), Ubisoft ($9.2 billion) and Take-Two Interactive ($13.7 billion) are around the same size.
Other investors that participated in the recent round include KKR, ICONIQ Capital, Smash Ventures, aXiomatic and Vulcan Capital.