RockYou, a US-based games developer backed by telecommunications firms SoftBank and SK Telecom, has attracted $23m in new funding in a round led by venture capital firm Columbia Capital yesterday.
Originally a social media advertising company, RockYou has changed its business model to one that involves buying up existing gaming titles that are past their prime but which are still enjoying a significant audience. It then continues to update the games while monetising them through in-game advertising.
The fresh cash injection will be used by RockYou to expand its catalogue of social games, and to establish partnerships with game developers.
RockYou has raised more than $160m in venture funding to date, in addition to $10m in debt financing secured from FastPay in July 2014.
SoftBank participated in a $17m round for RockYou in 2008 alongside SK Telecom, before investing $50m in 2009 and taking part in a $10m round the following year alongside SAIF Partners.
Other existing investors include DCM, Sequoia Capital and Lightspeed Venture Partners.