PlayMob nets £500,000 of expansion capital
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Building on the growth the virtual goods market has achieved, PlayMob has secured venture capital backing to expand its product offering.
Birmingham-based technology business PlayMob has secured £500,000 of funding from a number of investors including Midven and NESTA.
The business, which develops technology allowing charities to fundraise through in-game micropayments, is set to use the growth capital to expand its staff count and develop its business model.
In-game micropayments work by connecting computer games, and users, with charities, allowing players to fundraise for charities by purchasing virtual items within a game.
Through the funding round a number of angel investors are entering the business, which is located at Birmingham Science Park alongside a number of other games orientated businesses such as Oop Game Studio.
Jude Ower, founder and CEO of PlayMob, says that the business ‘passionately ‘ believes that gaming can have huge social benefits by giving charities and brands access to ‘hundreds of millions’ of players.
According to PlayMob, virtual goods revenues have increased by 156 per cent since 2010 and has an estimated worldwide value of £26 million. This is set to rise to £201 million by 2015.
He adds, ‘This investment gives us a significant boost to grow our reach globally and to remain at the forefront of developing social gaming that benefits all.’
Andrew Muir, director at Midven and investment director for the Early Advantage Fund, comments, ‘There’s a real specialist cluster of expertise in this sector being developed right here in the West Midlands – developing technologies which offer the user an enhanced experience.
‘We are excited about the future of PlayMob – a simple business model, yet early indications are very encouraging, and similar models have been proven to work well in the digital industry.’
Midven currently manages five funds representing £61 million under management and invests in sectors including software, biotechnology, healthcare and healthcare. It has backed PlayMob through its £8 million Early Advantage fund, which provides investment for small, high growth businesses at start-up and early stage in the West Midlands.
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