Published: Thu, May 25, 2017
Hi-Tech | By Grace Becker

Unity game engine raises $400 million in new funding

Unity game engine raises $400 million in new funding

Unity Technologies, the developer of the wildly popular game engine that powers nearly half of the gaming content on mobile, has today revealed that it has raised a hefty $400 million from U.S-based private equity firm Silver Lake. The company develops tools for video game developers. John Riccitiello, CEO of Unity, commented that it "makes sense to let employees buy cars".

First launched in 2004, Unity Engine is a cross-platform game engine that powers some of the world's most popular games.

"The capital is safety when we're investing to grow as fast as we are", he said. While the game industry is growing, it's a fickle business, where investors have struggled to pick winners. The investment values Unity at $2.6 billion, according to a Bloomberg report. Paired with the Carte Blanche editor, which is meant to give people quick access to content creation in VR, Unity sees its engine covering all aspects of the industry going forward.

Egon Durban, a managing director at Silver Lake oversaw the investment. Sequoia Capital remains its largest shareholder. Roelof Botha is on the company's board.

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CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average. Many investors will choose to measure price performance of a specific stock to that of different market indexes as a whole.

The latest round of funding follows one which closed nearly a year ago, where Unity landed $181 million from investment led by DFJ Growth.

Silver Lake can easily outspend most venture capitalists. It's not as though the equity firm is having to be careful with a small amount of funds though, as last month it raised $15 billion for a technology fund. Riccitiello, who previously served as president and chief operating officer of game publishing giant Electronic Arts Inc., also added while the new funding is good, Unity is not hurting for cash.

The second act that I think attracts a lot of investors and investor interest is the fact that we have about 70 percent of AR and VR content built on Unity.

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