OMGPOP Raises $10.1 Million For a Growing Social Game Strategy
A rumor first reported two months ago that social gaming site and developer OMGPOP was raising $10 million has turned out to be true, with the company announcing a $10.1 million raise from Rho Capital, Softbank, Spark Capital and Betaworks.
That’s a not-inconsiderable sum, but Omgpop is also fairly unique. The company got its start with its own destination site for dating, which evolved into a game and social network for teens.
However, the focus is off the eight million user destination site, according to CEO Dan Porter, and on to Facebook and the iPhone. “The monetization on our website is as good as Facebook,” he told us over email. “But the scale is not.”
Omgpop plans to make the shift quickly. “Within 2 months after we release two more games it will probably be 90% Facebook, and 10% Omgpop,” Porter said. On Facebook, the company will reach out to the favored 35+ female demographic that other also compete for, while Porter thinks the iPhone audience will be closer in age to Omgpop.com’s audience.
Although it’s shifting its own business model, Omgpop is interested in finding developers to work on its portal, so that it can turn all of its own resources outward. The upside to building for Omgpop could be over $100,000 per year for a third-party developer, according to Porter. “We think this opportunity is vastly better than what developers expect from existing game portals,” he said.
Besides devoting more internal resources to game design, Omgpop also intends to use some of its funding money to make an acquisition. “There is good talent in NYC but we need to expand to other cities to have a chance to continue to attract top notch developers,” said Porter. “The folks we are talking to traditionally have not raised a lot of money, have made a game or two, but need to team up with a bigger entity.”