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Nifty Games has raised $38 million to launch its mobile games, NBA Clash and NFL Clash.
Vulcan Capital led the investment, and $12 million came from debt financing. In an interview with GamesBeat, CEO Jon Middleton stated that a large portion of the money will be used to launch the games and acquire new users.
This kind of funding is something Nifty could not have imagined when it was founded in 2018. Since then, there has been a boom in venture funding and games have experienced a surge. Nifty was also founded by Peter Moore, the former Sega of America and Xbox business head, who joined Lafayette, California-based company on the board.
Middleton stated that Nifty has also been testing its mobile sports games for quick sessions and head-to-head play. Although he didn't mention a release date for NFL Clash yet, he suggested that the company might do so in the near future.
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All of this makes it a great time to raise funds for your company.
Middleton stated that it is an interesting time in the fundraising world. Vulcan is our spearhead investor. They are a triple-A technology investment firm and they own the Seahawks, Trailblazers, and other teams. It's a lock-and key fit.
Image credit: Nifty Games
It is one of the most well-funded mobile gaming startups, having raised more than $50 Million to date. The company was founded by Middleton and Pete Wanat, a former Universal games executive. It now employs 40 people. It also contracts art to overseas companies.
Middleton stated that they are very grateful for the support we have, and were thrilled to hear from them.
Vulcan Capital is not the only investor in this round. March Gaming, Defy Partners and Courtside Ventures are also part of the group. A strategic group of new investors was also included. These include South Korean funds Woori Capital and K-NET as well as Hansae Yes24. Steve Pagliuca is the managing shareholder of the Boston Celtics. Speedwagon Capital and Gaingels are also new investors. Gaingels is a global network LGBT/ally investors. Middleton stated that the latter is a good investment because of its diversity and accessibility.
Moores view
Moore was just finishing a successful stint with the Liverpool Football Club in England when Middleton invited him to join the board.
Image credit: Nifty Games
Moore stated in an interview with GamesBeat, that Middleton was attracted to Wanat and Middleton because they made games that he could play casually. Moore admitted that he could have done better with the EA Sports console and PC games, but these Clash games were more in his style.
Moore stated that I play every day so it's rare that I don't play six to seven times per day. This is because I have five, 6, or 7 minutes to play a single game. I am able to climb the ladder. It is something I look forward too.
He was also impressed by the fact that Niftys's frugality allowed them to secure licenses from the National Football League, National Football League Players Associations (NFLPA), National Basketball Associations (NBA) and National Basketball Player Associations (NBPA).
Although it's not Madden, FIFA or FIFA, it is so much fun. Moore stated that it is so strategic. I am excited about the NFL and equally excited about the NBA due to the NBA's global reach, especially in Asia.
Nifty Games is aiming to create a collection of titles that are based on the largest sports licenses in the world to provide mobile-first gaming.
Sleeping giants
Image credit: Nifty Games
However, there is still competition and it is waking up. EA bought Playdemic, which makes Golf Clash, in June for $1.4 billion. EA also paid $2.4 Billion for Glu, whose games include MLB. Zynga was led by Bernard Kim and Frank Gibeau, former EA executives. It also bought StarLark, a Chinese developer of Golf Rivals, for $525 million. Both companies are now ready to create quick-play sports titles similar to Supercells Clash Royale.
I inquired if the sleeping giants were awake. Moore replied that they were still waking up, and Nifty Games was just about ready to ship its titles.
Moore stated that we have been working on this project for over a year. It's one thing to wake up. It's quite another to have something prepared for you.
This made me laugh and reminded me why I loved interviewing Moore. Moore was always interested in loud and funny competition. Moore laughed when I asked him if he enjoyed competing with Andrew Wilson, EA CEO, and Gibeau, former EA executive at Zynga.
You may know Dean, my former employer at EA. We have discussed this for a decade. He said that mobile has always been a problem. The board decided to pursue Glu and acquire Playdemic. They are racing with Codemasters and are leveraging their balance sheets to catch up on any strategic missteps. Let me leave it at this. EA is a huge oil tanker, and a motor torpedo ship. There are many things we can do to make our lives better.
Moore made these mistakes, but I didn't ask him. Maybe I will ask again.
The tanker and torpedo boats
Wanat stated that Niftys' advantage is its large pool of mobile game experts from companies such as Zynga or Scopely. They also have many die-hard sports enthusiasts and free-to-play experts.
Wanat stated that they understand the passion behind sports games and how it is different from other mobile genres.
Investors liked this. Vulcan Capital partner YB Choi stated that his company sees a huge commercial opportunity in bringing premium games to mobile gamers. This allows them to create a roster with their favorite pro players, and then call the shots while their team competes throughout the season. Middleton expressed his gratitude to the all-star investors, which included Pagliuca, coowner of the Boston Celtics, and co-chairman of Bain Capital.
Middleton stated that we were able to go beyond our weight because of the content and partnerships we have.
It will be difficult to acquire users, since it will take a lot of money and effort to reach the people who are willing to spend money on sports games.
Moore stated that we know user acquisition can be expensive and difficult in the mobile world. We want to ensure that the team is strong, but also make sure there is enough money in this funding to enable us to deploy to user acquisition. We are making sure the team is strong and at the same time we are making sure that there is plenty of money left in this funding to be able to deploy against user acquisition.
