Benchmark Capital invests in Sulake, the company behind the leading online teen community and game property Habbo Hotel
- Current owners 3i and Elisa co-invest
Benchmark Capital today joined the Habbo success story by leading an investing round of $ 23.5 million (18M€) in Sulake Corporation � the creator of Habbo Hotel. Current owners of Sulake, 3i Group plc and Finnishtelecom company Elisa Group, co-invested in the financing.
Sulake is an interactive entertainment company specializing in developing, publishing and distributing multiplayer online communities and games. Sulake's top brand franchise, Habbo Hotel, is an online game environment designed for teens and has become one of the most popular and fastest growing teen websites in the world. To date, over 22 million Habbo characters have been created, with three million unique users visiting Habbo Hotel each month.
Sulake operates in various areas of the interactive entertainment industry, which is the fastest growing segment of the global entertainment and media market. Interactive entertainment is expected to grow from 25 to 55 billion USD between 2004 and 2008, averaging an impressive 20 percent compound annual growth.
"During this year we will focus on the further development of the Habbo Hotel concept and its launch in the promising Asian markets, particularly China and Korea," said Timo Soininen, CEO of Sulake Corporation.
"Our strategic aim is to build Habbo into a new type of youth brand which is anchored in the largest online teen community. The Habbo brand will also extend to include mobile games and content, animation series and merchandising products. We are also looking to broaden our product portfolio with other kinds of game and community concepts for new target audiences," adds Soininen.
"Benchmark is excited to invest in Sulake Corporation to help achieve the goal of Habbo Hotel becoming the largest global teen multiplayer game community. We have been very impressed by the achievements of the founders and management to date, and believe Benchmark can help further this success, through its global network and company building experience, " said Johan Brenner, General Partner of Benchmark Europe. "We believe multiplayer game communities spanning both the online and mobile worlds will be a major force in the increasing convergence of entertainment, interactivity and communication. Sulake is well positioned to be one of the leaders in this rapidly growing industry."
Jussi Nurmio, CEO of Taivas Group and co-Founder and Chairman of Sulake, said, "We are very pleased to have Benchmark as a new investor, as I feel that their expertise and experience will help us in realizing our vision of building a new type of global teen brand."
Ere Kariola, Managing Director of 3i Finland, added: "As a long-standing supporter of Sulake, 3i was attracted by the company's pioneering, fresh and innovative approach to building online social communities for teenagers and its highly effective revenue model. Progress to date is excellent and 3i sees great potential in further expanding the Habbo and other brands to new business areas and regions leveraging the full support of 3i's global network of corporate contacts and decades of expertise."
For more information:
Timo Soininen, CEO, Sulake Corporation, tel. +358 50 564 8269
Juha Hynynen, CFO, Sulake Corporation, tel. +358 50 388 9485