AAA Discord creates $50m in new round

Discord creates $50m in new round

Discord, the US-based messaging platform backed by internet company Tencent and media group Time Warner, has raised $50m in funding round from undisclosed investors, Cheddar reported yesterday.

The company was valued at $1.65bn in the round according to a Delaware filing cited by Cheddar that was confirmed by a company spokesperson. It last raised funding at a $725m pre-money valuation, in a $50m round in June 2017.

Founded in 2012 as game developer Phoenix Guild, Discord pivoted in 2015 to focus on a messaging platform for gamers. The platform, which incorporates voice chat and text-based messaging, now has more than 87 million users.

The funding will support Discord’s international growth as well as the expansion of Nitro, a subscription service that gives users upgraded tools like animated avatars and more space to upload images and videos.

Studio 9+, Accel, General Catalyst Partners and IDG Ventures provided $1m of funding for the company in 2011, when it was still known as Phoenix Guild, and it added $8.2m from investors including Time Warner in 2013, by which time it had rebranded to Hammer & Chisel.

Benchmark led the 2013 round, which also featured Studio 9+, IDG Capital, Accel and GC Capital Partners, before Tencent, Benchmark and Studio 9+ invested an undisclosed sum in 2015.

Greylock led a $20m round for Discord in early 2016, investing alongside Tencent, Benchmark and incubator YouWeb, and the 2017 round featured Spark Capital, Institutional Venture Partners, Greylock Partners and Benchmark as well as Index Ventures.

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