Splitgate Developer 1047 Games Raises $100M

Splitgate's Ascent: From Indie Project to $100 Million Success

The gaming company 1047 Games is experiencing significant momentum with Splitgate, its debut title. Initially developed with limited resources, the team has secured three funding rounds, culminating in a substantial $100 million investment.

A Community-Driven Approach

Ian Proulx, co-founder and CEO, attributes the game’s success to a dedicated player base and a business strategy mirroring that of Silicon Valley startups.

Five years ago, the free-to-play (F2P) PC gaming landscape differed considerably. While titles like World of Tanks and Warframe demonstrated potential, and mobile gaming thrived on in-app purchases, Fortnite hadn't yet proven the immense profitability of the F2P model.

Iterative Development and Data-Driven Decisions

“Previously, game development involved extensive pre-launch investment and a reliance on immediate success,” Proulx explained. “We adopted a different approach – a soft launch to gather data, listen to player feedback, and refine the game iteratively.”

He emphasized the importance of investing in a product demonstrating strong metrics and key performance indicators (KPIs) rather than solely relying on marketing hype.

Splitgate: A Unique Blend of Classic and Modern Gameplay

Splitgate is a multiplayer online competitive shooter drawing inspiration from arena shooters such as Quake 3, Unreal Tournament, and Halo. The game distinguishes itself through the innovative use of portals, enabling dynamic movement and strategic gameplay.

Image Credits: 1047 Games

Overcoming Investor Skepticism

Proulx revealed that initial investor meetings were often unsuccessful, as Splitgate didn’t neatly fit into established genres like battle royales or hero shooters. However, he maintained confidence in the game’s potential to revitalize a beloved, yet underserved, market.

“Players have fond memories of these classic games, and their decline isn’t due to a loss of interest,” he stated. “Innovation and accessibility have been lacking. While Quake Arena is excellent, it’s challenging for newcomers. We aim to bridge that gap.”

Drawing Parallels to Rocket League

Proulx suggests that Rocket League serves as a more apt comparison than traditional shooters. Both games offer a simple, accessible core concept with a high skill ceiling, monetized through cosmetic items and optional enhancements.

“The game allows for both casual enjoyment and deep strategic mastery,” he added.

From MVP to Breakout Hit

The initial release of Splitgate in 2019 was a minimum viable product (MVP). While functional, the team quickly learned that running a successful F2P game required more than just enjoyable gameplay.

The team prioritized player retention and actively incorporated community feedback to transform Splitgate into a “forever game” sustained by ongoing content updates, seasons, and new features.

The game garnered approximately 600,000 downloads in its first month. However, the multiplatform relaunch as an “open beta” this summer resulted in over 10 million players in July.

Securing Funding and Future Growth

This surge in popularity dramatically altered the company’s fortunes, leading to successful funding rounds. The initial round, though difficult to secure, paved the way for subsequent investments.

The second round, completed with Human Capital, was finalized within a weekend. The latest round, led by Lightspeed Venture Partners, included participation from Insight Partners, Anthos Capital, Galaxy Interactive, VGames, Human Capital, Lakestar, DraperDragon, and Draper University.

A Vision for the Future

With $100 million in funding (plus $16 million from previous rounds), 1047 Games aims to expand its team and accelerate development. The investors believe that a game with 10 million (and growing) players represents a significant opportunity.

“We’re now equipped to pursue ambitious goals,” Proulx stated. “We view the game as only 25% complete. Our focus is on long-term growth, aiming to build a company comparable to Riot Games.”

Continuing Community Engagement

Splitgate is still progressing towards its 1.0 release, and the team remains committed to incorporating player feedback. Proulx emphasized the importance of maintaining the close relationship with the community that has been instrumental to the game’s success.

“We actively monitor all feedback and continue to operate with the mindset of an indie team,” Proulx concluded. “We now have the resources to realize our vision for Splitgate.”