1047 Games raises $100M on the runaway success of its debut title, Splitgate

When you’re hot, you’re hot. And 1047 Games is making the most of the heat generated by Splitgate, its first game and a now a breakout success. After working on a shoestring for years, the team has since May raised three rounds, the latest for a massive $100M.

Co-founder and CEO Ian Proulx credited a dedicated community and, as he described it, “taking a Silicon Valley approach to running a game business.”

At the time 1047 Games was founded, about 5 years ago, free to play (f2p) PC games were a niche genre. While games like World of Tanks and Warframe were seeing success, and of course many mobile games relying on in-app-purchases, Fortnite had yet to show the industry that f2p could be so ludicrously profitable.

“5 years ago it was very hit driven: you spend years developing a product, put all this money into hyping the launch, and then hope it’s a success,” Proulx explained. “Our process was, there’s no way we can take that risk — if we spent our entire budget and got it wrong, we’re out of business. So we thought, let’s do a soft launch, put it out there and see what happens, learn, listen, look at the data. Why would I spend money marketing a product that I have no idea about whether it will be a success? If we wanted to spend money, and we didn’t have a lot, I’d rather spend it on a product that has great metrics and (Read more...)