Epic Games—publisher of the blockbuster videogame, “Fortnite”—has raised a giant $1.25 billion round of funding, reports VentureBeat. The investors in the new round include KKR, Vulcan Capital, Kleiner Perkins, Lightspeed Venture Partners, ICONIQ Capital and others, who joined earlier investors such as Tencent, the Chinese internet giant. That is an enormous sum of fundraising round for a games company—the biggest non-IPO investment ever in the category, VentureBeat said.
The deal speaks to the huge success of “Fortnite,” an online battle royale game that debuted last year. By some estimates, the game, which is free to play but charges players to buy virtual items, has generated over $1 billion in revenue already for Epic. Games are a hit-driven business, where titles can turn suddenly cold. Earlier this year, The Information reported how a slowdown in revenue from the games publisher Supercell marred an $8 billion acquisition of the company in 2016 by a Tencent-led group of investors. Epic’s investors had better hope the hits keep coming.