Hot Gaming Startup Supercell Is Closing A Round Above $100M At Valuation Around $800M

Supercell is a very quiet, humble mobile gaming company out of the very quiet and humble city of Helsinki, Finland. Unlike their brasher, Angry Birds-making brethren a 15-minute drive away in Espoo, they don’t like to talk much about anything beyond making games and about the company culture they’re deliberately cultivating. All of this belies what has become a phenomenal business over the last nine months — one that makes around $1.3 million per day off two iOS games called Clash of Clans and Hay Day. After about three months of considering whether to do a huge secondary round with the help of boutique investment bank Code Advisors, we’ve heard they sold somewhere between 16 and 20 percent of the company’s common shares in a deal that would value the company at around $800 million. We’re still trying to figure out the exact amount. It’s somewhere between $100 and 150 million, but closer to the lower end of the range. We heard they got close, but didn’t quite get to a $1 billion valuation, not that this should be the goal anyways. Supercell declined to comment on the financing round. “We simply will not comment on market rumours,” said spokesperson Heini Vesander. “We’ve never really done that and will not do that now.” We’ve heard that Institutional Venture Partners, Atomico and Index Ventures are the new investors. Tencent and DST had done some due diligence on the company in February, but didn’t end up going in for whatever reason. Index declined to comment, and Atomico and IVP did not reply for comment. It’s a bold, ballsy bet for what is basically a two-product company in a notoriously hits-driven business. While the macro trends behind mobile gaming are hard to argue with, the business is unpredictable. Several of the companies that were leading the charts two years ago are now much farther down, even if their businesses are still profitable. Last year, the whisper numbers for top grossing titles ranged in the $40-80 million range annually.?At around $1 million a day, the industry is looking at mobile gaming franchises that could gross between $200 and 400 million in 2013.? A few days ago, Japanese carrier Softbank increased its stake in Gung Ho Entertainment, the maker of what is probably the most valuable iOS game in the world today — Japan’s Puzzles and Dragons. That deal valued that company at $4.1 billion,

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