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Chinese internet Tencent has continued its recent investment spree after it backed U.S.-based game studio Pocket Gems<\/a> to the tune of $90 million.<\/p>\n Tencent invested in Pocket Gems back in 2015<\/a>, when it put in a reported\u00a0$60 million for a 20 percent stake. This time around the Wall Street Journal reported<\/a> the investment as $90 million, which TechCrunch has confirmed independently. That deal, the Journal said, takes Tencent\u2019s equity to 38 percent, giving Pocket Gems a valuation of around $600 million.<\/p>\n That\u2019s particularly\u00a0impressive given that the company is known for just two titles:\u00a0Episode, an interactive storytelling game predominantly used by women, and 3D strategy game War Dragons, which is a bigger hit among male gamers.<\/p>\n Pocket Gems, which was founded in 2009, claims to have notched 300 million downloads to date and\u00a0its monetization efforts appear to be picking up steam. App analytics company Sensor Tower estimates that revenue for April reached $17.5 million which, if maintained, would put the company on course to surpass $200 million in sales\u00a0this year. Pocket Gems said<\/a> 2016 was a record for sales and gamers, but it did not disclose figures.<\/p>\n \u201cWe think we\u2019re pretty unique because we are able to make products for different audiences and both are successful,\u201d Pocket Gems CEO Ben Liu told TechCrunch in an interview.<\/p>\n Liu said that, to date, Tencent had been fairly hands-on helping his team develop its games and future strategy although it doesn\u2019t have distribution arrangement. Currently, neither of its titles\u00a0are available in Chinese language \u2014 or with localized gameplay for China \u2014 but Liu said he is aiming to address that in the future with help from Tencent.<\/p>\n \u201cOur hope is [to be in China] but we\u2019re not there yet,\u201d he said. \u201cTencent are really expert at taking things that work in the West and making Chinese versions of them,\u00a0plus they have so much reach, partnerships with celebrities and understand the Chinese media.\u201d<\/p>\n Already, he added, Japan has become one of War Dragons\u2019 top markets, but Liu anticipates that the Chinese gaming market \u2014 which is already larger than the U.S. for iOS app revenue<\/a> \u2014 will become more international, giving U.S. companies like Pocket Gems a better chance at success.<\/p>\n Liu\u00a0praised Tencent and fellow\u00a0investor Sequoia, which didn\u2019t participate in this new round, for their support.<\/p>\n \u201cBoth are long-time-minded and want us to do risky, long-term things. [Our games] weren\u2019t initially successful but they really believed in us and supported us,\u201d he explained.<\/p>\n The money raised this time out is going to be spent scaling the business to the next level. Liu intends to grow the Pocket Gems team significantly from its current size of 220 staff. Right now, the startup is hiring for at least 60 positions with potentially more to come soon.<\/p>\n Strategically, it is developing a new studio focused on making new multiplayer titles for hardcore gamers which Liu said has been quietly in development for a few years. For the existing titles, it\u00a0is planning to introduce a \u2018world map\u2019 feature for War Dragons, and\u00a0expand its partnerships for\u00a0Episode, which has already landed tie-ins with\u00a0Mean Girls, Pretty Little Liars, and Demi Lovato. For the latter, Liu teased the \u201csimultaneously release of a Hollywood property\u201d which is coming soon.<\/p>\n Pocket Gems aside, Tencent\u2019s investments in game companies include League Of Legends creator Riot Games<\/a>, Supercell, the Finnish firm behind Clash Of Clans,<\/a>\u00a0Korea\u2019s CJ Games<\/a>, and Glu Mobile<\/a>.<\/p>\n Featured Image: Qilai Shen\/Bloomberg\/Getty Images<\/small><\/p>\n","protected":false},"excerpt":{"rendered":"![\"\"](\"https:\/\/tctechcrunch2011.files.wordpress.com\/2016\/11\/gettyimages-598020184.jpg?w=680\")
Chinese internet Tencent has continued its recent investment spree after it backed U.S.-based game studio Pocket Gems to the tune of $90 million. Tencent invested in Pocket Gems back in 2015, when it put in a reported\u00a0$60 million for a 20 percent stake. This time around the Wall Street Journal reported the investment as $90 million, which TechCrunch has confirmed independently. That deal,… Read More<\/a><\/p>\n\n<\/img><\/a>
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