
Earlier this week it was announced PopCap games has raised $22.5 million in capital from Meritech Capital Partners. We covered it here. Many were shocked. Some awed. I am really not all that surprised. Don’t get me wrong, I care, a little tiny bit. Enough that I will take a few minutes of my time, and yours if you are reading this, to shed a little light on the situation and calm those fears that PopCap might be in trouble or changing drastically as some have mentioned.
PopCap makes some awesomely addictive games. Some are worse than crack. Matt knows, I know, you know. PopCap makes games so great that they are included in other games. So they make great games, which sell, which makes the money. Why do they need more money?
Yes they have stated they are looking to grow and expand business operations, but there is a little more going on here. To grow operations, working capital, or make acquisitions companies normally raise capital via debt issuance such as loans or bonds. If you are raising capital via equity issuance you are essentially selling a piece of your company. So if you give up percentage of your company, what do you get in exchange? Some serious dough and expertise.
PopCap’s fund raising and selling of themselves have brought them some serious allies in the world of technology and business. The boys at Meritech Capital Partners have a large number of investments in software, media, and internet firms, ya know, like Facebook. These guys with a few other business big shots will advise PopCap games on strategy, business growth, and generally look to achieve the maximum return on their investment. They will achieve this by using all of their knowledge, experience, and leveraging their existing relationships and investments.
In short, PopCap just pulled a power move. Expect a few more to come, like some of their titles embedded in more platforms such as Twitter and Facebook. Now I have to go. Peggle is calling me.














Peggle….Yes, I forgot about that one.
[...] been talking a lot about PopCap around here the past week, but this is just me expressing my thanks for them [...]
Peggle is cool – I play it all the time