Internet technology provider NetEase has invested $50m in UK-based game programming technology developer Improbable at a valuation a source told Bloomberg was about $2bn.
Founded in 2012, Improbable has developed a cloud-based software development platform known as SpatialOS that helps programmers create immersive worlds for games and entertainment products at a larger scale than is possible using single-server architecture.
The investment follows a partnership formed between China-based NetEase and Improbable in February this year that will involve the former developing games utilising SpatialOS, and the first such title is set to be announced later this year.
The deal will also help Improbable move into the greater Asia Pacific region, where it is looking to forge partnerships with local developers.
The round’s valuation is double that at which telecommunications group SoftBank led a $502m series B round for Improbable in May 2017, investing together with venture capital firms Andreessen Horowitz and Horizons Ventures.
Andreessen Horowitz had initially supplied $20m in series A funding for the company in March 2015 that was topped up by another $30m from Horizons Ventures and Singaporean state-owned investment firm Temasek four months later.
Improbable CEO Herman Narula told VentureBeat: “It is quite usual in large-scale commercial partnerships for the bigger company to invest a small amount in the technology provider like us.
“It makes sense in that NetEase will be building completely new games on our back, which is very unusual in the industry for an epic company to do that with an external business.”