Gaming has been one of the most popular entertainment categories in the last two years of pandemic living. Now, a gaming startup that's building a new kind of platform that it thinks will be a -- wait for it -- game changer in the category is announcing some funding as to ride that wave of attention.
PortalOne, which is building an immersive gaming platform that describes itself as hybrid in more ways than one -- it mixes games with a game show/talk show format, and it's designed to work across various devices from mobile through to consoles and VR headsets -- has picked up $60 million. The startup -- based in Oslo but with a significant presence also in Los Angeles -- plans to use the funding to continue building out its platform and operations en route to its first commercial launch: PortalOne Arcade, a journey into a retro "arcade" featuring multiple games.
PortalOne Arcade has been running in a closed beta since last year, and the company is running a sign-up list for those interested to try it out, but what the team has built and its plans for the future are enough to be attracting some very big names.
Tiger Global is leading this round, a Series A, with Scooter Braun's TQ Ventures, Temasek, Avenir Growth, Founders Fund, Talis Capital, Connect Ventures, Animoca Brands, Access industries and Coatue Management also participating, along with "a number of high-profile angel investors", the company said. This round comes about eight months after PortalOne raised a $15 million seed round, also notable for its size and the backers. It included games icon Atari, which is working with PortalOne to include some of its brands and IP in that Arcade launch.
Bård Anders Kasin, PortalOne's CEO who co-founded the startup with his brother Stig Olav, said in an interview that the company plans to release PortalOne Arcade sometime later this year, but in closed beta the startup has now produced some 200 shows. He said this proves out its belief that the technology that it has assembled -- which brings together cutting-edge games design, live broadcast, interactivity and a low-cost approach to capturing and processing video all in the cloud -- is scalable.
"It's a very high number of shows, considering the complexity involved," he said.
Stig has been spending time in LA building out the company's studio there and the plan will be to set up more of these across other cities globally.
PortalOne is building its business in the midst of a perfect storm.
First of all, gaming, like other streamed entertainment, has been a lifesaver for many a consumer confined to staying at home during the pandemic. That has led to record levels of interest and engagement in games, and that has in turn resulted in a host of new entrants into the space (including some from other entertainment verticals, like Netflix).
This has also resulted in the category becoming of the hottest among tech startups at the moment, with investors rushing to put money into what they believe are the most promising players in the field. Just in the last couple of weeks, Yahaha and Spyke respectively announced that they'd raised $50 million and $55 million -- with neither of them having yet actually launched anything. (Both are running closed betas and other pilot projects, costly efforts in themselves in this sphere.) Meanwhile, a more established, but still very young (it launched last year), startup called Dream Games, has now reached a paper valuation of $2.75 billion after its round, which also was announced earlier this month.
Second of all, PortalOne is fitting squarely into a zeitgeist. "Metaverse" has become one of the buzzy catchphrases of the moment, and while it is leaning dangerously close to getting overused and rendered meaningless (or has that already happened?), for the moment it is driving a lot of interest among bigger and smaller companies considering how and if they can fit into that new realm.
PortalOne seems almost custom made to fill a gap in the metaverse: One of the big issues with VR and AR (two of metaverse's precursor concepts and industry efforts) has been a decided lack of compelling content, along with other hurdles involving hardware and more. With its "hybrid" mantra, PortalOne positions itself as supremely flexible, there to be used on whichever platform a user might have to hand.
And its focus on creating both lean-back (broadcast) entertainment mixed with engaging game play, leveraging a lot of familiar gaming brands alongside completely new titles, is a mix that will, again, be potentially poised to appeal to different demographics, different users and the different states of mind that consumers might have when turning to their screens.
Bard tells me that the startup has been talking to a pretty wide range of companies in the gaming and social ecosystems -- from those operating platforms, through to console giants and those publishing content, and companies building tech to make it all happen. But to be clear, the company for now at least is very focused on building its own walled garden of sorts, the Arcade, where people will play. That is to say, even if or when PortalOne creates an experience to be used in someone else's metaverse (or more prosaically a third-party console) it will hold on to bringing people into its own "metaverse" world.
Part of that is because of how PortalOne has built out its platform.
"One of the big things we solved early on was how to scale this," Bard said, "being able to produce the amount of content we can in a modular and efficient platform. It's a cost-efficient breakthrough: producing our hybrid games comes in way below industry standards." The modular approach has both to do with how video and play is captured, but also with how PortalOne re-uses components across different games (with all those components in the cloud). "This is part of our secret sauce."
That sauce is something that investors think will be to mass-market taste.
“We believe PortalOne is building an innovative experience at the intersection of gaming and entertainment. We are excited to back the Kasin brothers and their talented team as they continue to build and grow the business!”, said Evan Feinberg, partner, Tiger Global, in a statement.
“PortalOne is building a platform that converges the most popular forms of entertainment into one seamless experience that will appeal to every category of performer," added Scooter Braun. "This is the next place to be in the world of immersive gaming, with unlimited content possibilities.”