Video games are big business. So big, in fact, that just carving out a niche in the gaming universe can prove to be very lucrative for investors. Now, five years after Discord first popped up as an alternative voice chat client built to appeal to gamers, the company has reached an estimated valuation of $15 billion after its latest round of funding secured $500 million.
The big capital infusions in Discord’s most recent round of funding came from Dragoneer Investment Group, Baillie Gifford & Co., Coatue Management, Fidelity Management & Research Co., and Franklin Templeton, among others. In their previous round of funding last year, the company carried an estimated value of only $7 billion.
While the company made its bones on serving a market of gamers yearning for a better chat experience, the features that endeared it to the video game community have also allowed it to expand into other markets. As the expansions of the COVID-19 pandemic in 2020 led to droves of people working from home and a huge bump in the popularity of online communication, Discord was in a great position to grow.
The potential value in Discord was apparent to many outsiders as well. Around six months ago, rumors swirled that Microsoft was making a push to acquire Discord, but the deal failed to materialize. A few months later, a partnership between Discord and Sony was established to help marry the app’s services to the PlayStation ecosystem.
It would seem that the sky is truly the limit for Discord now. As its user base and market share continue to expand, we could see the company opt to go public in the coming years. For more news on Discord and all the biggest movers and shakers in the entertainment and tech industries, keep checking in with us here at Shacknews.