SuperÂcell, the fanÂtasÂtiÂcalÂly fast-risÂing Finnish gamÂing firm, has just conÂfirmed that it raised $130m in FebÂruÂary, courÂtesy of a round led by Index VenÂtures, InstiÂtuÂtionÂal VenÂture PartÂners and AtomÂiÂco. Not bad for a tiny HelsinÂki-based firm that was mereÂly an idea in its founders’ heads in 2010. But when you conÂsidÂer that it’s been valÂued at $770 milÂlion, seaÂsoned prodÂuct manÂagers and chief revÂenue offiÂcers will instantÂly underÂstand how it attractÂed such mega-investment.
AddicÂtive appeal
FoundÂed by two expeÂriÂenced tech firm execÂuÂtives, IlkÂka PaanaÂnen and Mikko KodisÂoÂja, it secured $12m in venÂture fundÂing in 2011 after being valÂued at $52.3 milÂlion. The fact that its sucÂcess has stemmed from just two titles on iOS so far speaks volÂumes about the addicÂtive appeal of the games, and the ingeÂnious craftÂing that’s gone into them.
ProdÂuct manÂagers with any expeÂriÂence of gamÂing techÂnolÂoÂgy can’t help but be impressed. The games are satÂuÂratÂed with immerÂsive feaÂtures and they’re comÂpulÂsiveÂly easy to play: Clash of Clans, a towÂer defense game, feaÂtures charÂacÂters that look like Mr. T and Hulk Hogan, but instead of driÂving armored vehiÂcles or ridÂing stalÂlions, they’re feaÂtured ridÂing warthogs. Even the most hard-headÂed of prodÂuct manÂagers and chief revÂenue offiÂcers would strugÂgle to supÂpress a smile. The othÂer game, Hay Day, feaÂtures comÂiÂcalÂly bloatÂed farm pigs and fish leapÂing out of a carÂtoon stream.
In the last quarÂter alone, SuperÂcell made $179m. In 2012, it grossed $100 milÂlion. Now it’s makÂing $2.4m per day, a run-rate which is setÂting it on course for $800m in 2013 (and quite posÂsiÂbly $1bn).
A unique structure
Unlike the traÂdiÂtionÂal game stuÂdio set-up where a czarist execÂuÂtive proÂducÂer gives the thumbs up (or down) to the work of proÂgramÂmers and develÂopÂers, SuperÂcell allows them to work in small autonomous groups of between 5 and 7 peoÂple. When they come up with an idea, they run it past 34-year-old CEO PaanaÂnen, who says he can’t recall ever nixÂing one, whereÂupon they set about develÂopÂing it into a game. Supercell’s employÂees then play it and, if it’s a hit with them, it gets sent to Canada’s iTunes App Store for testÂing. Only if it passÂes muster there will it be released globally.
PerÂhaps that’s why PaanaÂnen describes himÂself as “the world’s least powÂerÂful CEO.” But he’s sure as hell a bright one.