Web3 gaming firm Mythical Games raises $37 million in Series C1 funding

The web3 video game development firm Mythical Games raised $37 million in a Series C1 funding round led by digital asset manager Scytale Digital.

New investors in the company included Cathie Wood's ARK Invest, Animoca Brands, PROOF, Stanford Athletics and MoonPay. Existing funders Andreessen Horowitz, WestCap, Gaingels, Signum Growth and Struck Capital also participated.

Terms of the raise resembled a Series C round in 2021, CEO John Linden told The Block in an interview.

"Most of the language was almost identical to Andressen’s round," he said. "We didn’t want to go to a full Series D yet," Linden said. 

The road to profitability

In addition to scaling its games and audience reach, Mythical Games intends to use the funding to bring the company to profitability.

"We have the chain working, the marketplace working, we have games in the market, and we think we have a good strategy to actually get the company to profitability," Linden said. "Once we do that, then we’ll go and raise what we consider a more Series D round, which is definitely a massive growth round."

Mythical Games plans to close the current round with an additional $20 million to $30 million later this year. 

Mythical Games raised $150 million in the 2021 round and eyed an additional $50 million in in January of this year, bolstering the firm's valuation to $1.25 billion at the time. As for the firm's latest valuation after the new Series C1 funding, Linden noted that it had shifted after the acquisition of DMarket but that "it's still a unicorn status."

The firm's most popular games include NFL Rivals and Blankos Block Party, which launched on the Epic Games Store in September 2022. Within the last year, the firm brought in over 2.5 million new users and has grossed $1 million in sales per day.