Ventech, Kite Ventures, and TA Ventures, venture capital funds, have invested $5mln into Pixonic, social network games publisher. These investments will be used to publish new games in social networks through the company’s own PixAPI platform.
Three major venture capital funds with a history of successful Internet startup investments are placing $5mln of funds into Pixonic, global social network games publishers. It’s the second round of investments for Pixonic, which raised $1mln last year.
“Social network games are a very promising market, and we’re confident about its fast growth. Pixonic’s global ambitions appeal to us, and we’re sure it’s a successful model”, says Alan Caffi, General Partner at Ventech.
The company’s management has vast and successful experience in internet businesses and social game publishing in particular: Pixonic’s producers have been involved in the publishing of over 50 games, and the company’s CEO, Elena Masolova, is a co-founder of Groupon Russia (previously known as Darberry), one of the most successful startups in Russia, sold to Groupon Inc. in 2010. In 2011, Elena was listed in the Forbes Russia Top-30 internet entrepreneurs.
“We see a huge potential at this market”, says Elena Masolova, Pixonic CEO. “Our recent research shows that the DAU of social networks other than Facebook exceeds the latter’s daily playing audience. By entering other social networks, game developers can easily increase their income by three or four times. And we’ll help them to do that.”
Pixonic has been developing very fast. PixAPI platform was launched in December 2010, and in spring 2011 the company was included into top-100 European startups by RedHerring. At the moment, the company has already launched over 30 games by 17 studios in 13 social networks across 7 different countries and has agreements to publish selected Mail.Ru Group social games outside Russia and publish Alawar social games globally. One of the company’s hits is Lil’ Brownies. The game has already been launched in 12 major social networks and has reached more than 6.5 mln installations, with the active daily audience of slightly less than 1 mln users.
The investments raised will be used to publish games in popular social networks, including Facebook, through PixAPI. Furthermore, fast integration into social networks, game localization and promotion, community management and payment system remain among the prime advantages for developers working with Pixonic.