Given that video-game Fortnite made its first billion dollars around nine months after its release last September, you might think its publisher Epic Games can fund itself. Yet as the company pushes in to the esports market, it’s just reportedly raised a $1.25bn funding round to help.
The company isn’t just about Fortnite: it’s the maker of the Unreal games-development engine, which is used for many console, PC and mobile games.
Prominent venture-capital firms including KKR, Kleiner Perkins and Lightspeed Venture Partners are part of the round, joining Tencent and Disney as shareholders in Epic Games. According to the Wall Street Journal, the round valued Epic Games at nearly $15bn. The company had already announced plans to plough $100m into prizes for the first official Fortnite esports tournaments.