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Finance

Gaikai raises $10m in second round of investment

Mon 24 May 2010 3:25pm GMT / 11:25am EDT / 8:25am PDT
BusinessOnline

Partners to begin offering services from July, business model detailed

David Perry's cloud gaming service Gaikai has secured a further $10 million investment in series B funding from TriplePoint Capital, Rustic Canyon Partners, Benchmark Capital and an un-named partner.

And according to a report by GamesBeat, Gaikai's partners will begin going live with their cloud gaming services between July and September this year, a month behind the launch of OnLive in the US.

While OnLive is a gaming service for consumers, Perry is licensing his technology to partners in publishing and retail to stream games directly on their own websites.

Consumers are able to play a demo of a game online, for which partners are charged one cent per minute. If that customers buys the game, 100 per cent of the price goes to the publisher, or split between publisher and retailer.

"Gaikai offers videogame publishers and retailers an innovative cloud-computing solution that enables the acquisition of new videogame players at a dramatically reduced cost," said Nate Redmond of Rustic Canyon Partners.

"This results in interesting new growth opportunities for the industry. Gaikai is led by exceptional entrepreneurs and we are pleased to be partnering with them to accelerate the transition of the game industry online."

At the start of the year it was revealed that Benchmark Capital had invested $5 million in the ambitious start-up.

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