Twitch Lands $20 Million in Series C Funding Including a Stake from Take 2 | Adweek
Advertisement

Twitch Lands $20 Million in Series C Funding Is this the countdown to an IPO?

As Twitch (formerly Twitch.tv) continues its run as one of the most popular gaming sites on the Web, the company has raised another $20 million in series C funding to expand still further. The company is reportedly paying pro gamers' salaries in the six figures to draw viewers from all over the world, as well as commentators who provide blow-by-blows for games like StarCraft and Dota 2.

Of note among the stakeholders—sandwiched between V.C.ers like Thrive Capital and WestSummit Capital—was Take-Two Interactive, a company that makes big-ticket games like the Bioshock series and XCom: Enemy Unknown. It's a good sign for the video company, especially when so much capital is on the line. Venture capitalists tend to want their money back eventually, and if the companies they've invested in can't pay it quickly enough, they tend to go public.

"With the investments from Thrive Capital, WestSummit Capital, and Take-Two Interactive, [this funding] ensures we can more effectively grow and tap into new markets," said Kevin Lin, COO of Twitch.

Twitch has been reworking many of its partnerships recently—after aligning itself with pro gamer organizations and gaming journalism hub GameSpot via a partnership with CBS, Twitch struck out on its own earlier this year. The new funding will be used to expand the ad sales group, along with upgrading the infrastructure as the next-gen consoles Xbox Live and PS4 prepare to ship out next month.

Advertisement
About VideoWatch

In just a couple short years, Web video has matured from a burgeoning category to a dynamic new business distinct from TV. As a result, the biggest producers, executives and talent in the business are getting onboard, and the Web is nurturing its own breed of stars and storytelling genres. VideoWatch is dedicated to chronicling the players and developments in this exciting new industry. 

Click to Subscribe to VideoWatch RSS