Earlier this month, we reached a new milestone in achieving our first exit from Seed Fund I (our first fund with outside investors). Last year we made our first investment in the US, in the PC games developer Radiant Entertainment, co-investing alongside Andreessen Horowitz and General Catalyst Partners. On March 8th 2016, just 11 months later, Radiant announced its acquisition by Riot Games.
This was a contrarian investment for us. Before this deal, due to the fast growth and exceptional returns we have received in the sector, we were primarily focussed on mobile game opportunities. But the Radiant team convinced us on our feeling that PC holds increasing opportunity. We met Tom, Tony & Seth at GDC 2015, where they shared with us their vision, game demos and previous experience. Their passion for games is huge. The key point reinforced by our discussions with them was that if approached in the right way, the PC market is a category of huge opportunity, coupled with far less competition than in mobile.
The one big challenge for us was their location. Radiant is based in Los Altos, California, far away from our base in London, England, and we like to be close enough to offer deep co-operation. Ultimately we decided to proceed as we would be investing alongside great VCs and angel investors with a much more local base. And we are very happy we did: eleven months from investment to acquisition is a new record for LVP.
Big thanks to the whole Radiant team on achieving this great milestone and for validating our belief in PC games.
This deal heralds the broadening our investment strategy to all digital game platforms. Digital PC Games was the fastest growing category in January 2016 - up 33% year over year according to Superdata. And our comfort in working transatlantically is much increased - going forward we have made specific allocations to fund further deals in North America. Watch this space!