Discord, the US-based online communication platform developer backed by corporates WarnerMedia and Tencent, has begun talks with investors to raise money at a valuation of up to $4bn, Bloomberg reported on Friday.
The funding will value the company higher than the $2.05bn valuation it achieved in its last round, in late 2018, and could value it at $3bn to $4bn according to people with knowledge of the matter.
Founded in 2015, Discord has built an online platform with more than 200 million registered users that allows them to communicate with each other through text, voice or video chats. It was designed for use by gamers but can support any external media input.
The lockdown measures caused by the Covid-19 pandemic have led to increased use of the app, particularly among non-gamers who are utilising it for online social get togethers.
The company received $150m in the 2018 round, which was led by investment firm Greenoaks Capital and backed by internet group Tencent, Technology Opportunity Partners, FirstMark Capital, IVP and Index Ventures. It boosted Discord’s overall funding to more than $280m.
Media and entertainment group WarnerMedia took part in an $8.2m series A round for Discord in 2013 that was led by Benchmark Capital and backed by Studio 9+, IDG Capital, Accel and GC Capital Partners.
Studio 9+, Accel, IDG Capital and General Catalyst were existing investors in Discord, and its subsequent backers included Spark Capital, Greylock Partners and YouWeb Incubator, the latter two having joined Tencent and Benchmark in a $20m round in 2016.
