South Korea’s Gamevil Launches $10 Million Fund to Find Game Developer Partners

By Kim-Mai Cutler Comment

Here’s an interesting trend. Yet another mobile gaming company, Gamevil, has launched a multimillion dollar fund to find small studios to partner with and distribute games on behalf of.

South Korea’s Gamevil said it will invest up to $10 million in external partners to build a strong lineup of smartphone gaming titles. This follows on TinyCo’s move to build out a $5 million fund, Glu Mobile’s $500,000 mobile-social gaming contest and we might throw in Tapjoy’s recent $5 million fund for porting games to Android for good measure (even though they’re not technically a game developer).

To hedge the risks of a hits driven business, many of the biggest mobile gaming companies are looking for tiny studios to work with and expand their portfolio of titles. Gamevil has found a few successes this way — namely with its paid hit Air Penguin, which was developed by a six-person South Korean outfit called Enterfly and earned more than $1 million in revenue in its first month.¬†Gamevil said it also recently acquired exclusive publishing and partial intellectual property rights to the ‘Cartoon Wars’ series.

The benefits of this model are two-fold. Not only do the bigger companies get the extra revenue from titles built by third-parties, they also gain a larger userbase to which they can cross-promote titles developed in-house later.