Epic Games Reaches Nearly $29 Billion Valuation After $1 Billion Funding Round

Closeup of a person using a video game controller.

On Tuesday, Epic Games announced the video game and software company is valued at nearly $29 billion after completing a $1 billion funding round to fuel business growth.

About Epic Games

Founded in 1991 by CEO Tim Sweeney, Epic Games is an American video game and software development company that has created popular video games like Fortnite, Battle Breakers, Robo Recall, Infinity Blades, and others.

According to the business, Fortnite has become one of the world’s largest games with more than 350 million accounts and 2.5 billion friend connections. In addition, the company also operates Unreal Engine, a real-time 3D creation tool for various industries like architecture, automotive, television, and more.

In an end-of-year report published by the video gaming business, the company stated the percentage of daily active users on the Epic Games Store increased 192% from 2019 to 2020, with 31.3 million daily active players. In addition, the same report stated the Epic Games Store community played 70% more hours — 5.7 billion hours — in 2020 compared to 3.35 billion hours in 2019.

Crunchbase data reports the video gaming business has raised $4.4 billion in total funding and has acquired several other businesses, including Houseparty, Tonic Games Group, RAD Game Tools, Hyprsense, and several others.

New Funding, New Valuation

Yesterday Epic Games revealed the company completed a venture capital funding round which resulted in the business raising $1 billion total. This new financing gives the video gaming company a valuation of nearly $29 billion. The round was completed after Sony invested an additional $200 million after investing $250 million last year. Other investors include Appaloosa, Altimeter, Franklin Templeton, Luxor Capital, and many others.

Sweeney said in a statement, “We are grateful to our new and existing investors who support our vision for Epic and the Metaverse. Their investment will help accelerate our work around building connected social experiences in Fortnite, Rocket League and Fall Guys, while empowering game developers and creators with Unreal Engine, Epic Online Services and the Epic Games Store.”

With the new capital, the business plans to support future growth opportunities, such as building on the long-term vision of a metaverse, a universe of interconnected virtual worlds.

Kenichiro Yoshida, chairman, president, and CEO of Sony, said in a statement,
“Epic continues to deliver revolutionary experiences through their array of cutting edge technologies that support creators in gaming and across the digital entertainment industry. We are excited to strengthen our collaboration to bring new entertainment experiences to people around the world. I strongly believe that this aligns with our purpose to fill the world with emotion, through the power of creativity and technology.”

The press announcement also stated the business continues to have only a single class of common stock outstanding, and Sweeney remains the majority shareholder of Epic Games.

The news of this new funding and valuation for Epic Games comes almost two months after Startup Savant reported the video gaming and software company filed an antitrust complaint in the European Union against Apple arguing the 30% commission Apple takes from App Store purchases is anticompetitive.

McKenzie Carpenter

McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.

Read more from McKenzie Carpenter