Mobile esports leader Skillz is today announcing a Series C funding round. Skillz has previously raised more than $28 million prior to the Series C round, which included receipt of money from the owners of the New England Patriots, New York Mets and Milwaukee Bucks. Its Series B round from September 2015 resulted in $15 million raised, with Wildcat Capital Management leading the effort.
The Series C funding round actually closed in the Summer, but Skillz has kept the raise a secret. The new round is in the amount of $25 million, bringing the total amount of money raised since inception to roughly $53 million.
Leading the Series C round is Liberty Global, the largest international cable company, and Telstra, an Australian telecommunications and media company. Also involved in the round is Andy Miller, a co-owner of the Sacramento Kings and Chairman/co-owner of NRG eSports.
"This is our last financing from a cash flow negative position," says Skillz CEO Andrew Paradise. "It is both a strategic partnership and investment. We were a company that was spending a lot of cash to grow before, and now we are cash flow positive and partnering with companies that have a reach of 40 million subscribers."
Skillz will close out 2017 at roughly three-times revenue from 2016, which was closed at $54 million. Paradise is thrilled with this last quarter, wherein he says players are playing more, spending more and the system has been deepening with more inter-game play.
Skillz also doubled its team this year and recently hired its hundredth full-time employee.
"Over next 12 months, you can expect massive amount of scaling," says Paradise. "We have spent very little money on advertising. Almost all on product development. My last company sold long before we grew out to this scale or size."
While Paradise is not talking about selling Skillz anytime soon, he admits an aspiration to take the company public.
"We're really well positioned now," adds Paradise. "Another financing would only be if there's an accretive partner that accelerates our timeline to get there."
Skillz is not in the business of developing mobile games. Instead, it provides game developers with the technology to integrate esports competitions into existing mobile games.
Earlier this year, Skillz was named to the top spot on the Inc. 5000 list, which tracks the fastest-growing private companies in the U.S. The company's three-year growth rate is over 50,000%.