London-based developer Mind Candy has received an investment lifeline with a $1 million investment, according to a report from The Telegraph.
The developer of successful online children's game Moshi Monsters received financial help back in April where it renegotiated a loan and managed to get a $1.5 million injection of cash. The company was one of the early tech start-ups in London and was valued in 2015 at £7.1 million, which is a far cry from its 2012 valuation of £46.9 million.
A failure to progress to smartphones led to many staff losses and a complete reboot of the franchise, which led to Ian Chambers, formerly of Game Digital, to take over from founder Michael Acton Smith last year. “Mind Candy’s had a very difficult period, we all know this,” Chambers told The Telegraph.
The Telegraph also reports that while the injection of cash is enough to see the company through 2017, it might need to organise further investment for Q1 2018. The company is currently working on two IPs with Petlandia Adventures joining Moshi Monsters in its portfolio as the developer's main focus.
The studio was formed in 2004 and at its height, Moshi Monsters was an incredibly popular IP. Aimed at 5-6 year-olds, the game had over 100 million registered users as of last year and spawned many different products including trading cards, a feature film and a Nintendo DS game.
“In 2016, following a well-publicised challenging period for the business, we set a new direction for Mind Candy," said CEO, Ian Chambers to Develop. "Within a year of starting to implement our plan, the momentum we created around Moshi Monsters and Petlandia saw monthly revenue grow year-over-year for the first time in several years. This led to a $1.5m investment from Accel, LocalGlobe and others. Our investors, along with everyone involved with Mind Candy, are very supportive and optimistic about our progress. We recently completed another round of more than $1 million from our existing investors, which will be used to continue this momentum.”