Big news for the Turkish startup ecosystem. Social gaming company Zynga confirmed that it is buying Istanbul-based Peak Games, the company behind popular Candy-Crush-style mobile gaming apps Toon Blast and Toy Blast, for $1.8 billion — $900 million in cash, and $900 million in Zynga shares.
This is an interesting post on Medium by Hummingbird Ventures ‘Peak sale to Zynga drives 8.6x gross fund return for Hummingbird Ventures’
Some interesting parts from the article:
We invested against VC consensus back in the days on the poor dynamics of casual gaming; too hit driven, low retention & short-lived marketing arbitrage, unsustainable and you name it…
We were the only pre-seed fund to invest in Peak in 2010 with €500K at €2M pre-money. The company raised <$25M in total in the last 10 years, resulting in amazing economics for the founder, and 200x+ return on Hummingbird’s first ticket.
Turkey was off-limits for investors. Nowadays, exceptional startups can come from anywhere. Far away from the epicenter of most tech innovation, away from FOMO, one can truly question golden rules of thumb and take the time to build a radically different culture.
We tell our entrepreneurs that one of the most relevant questions they can ask future investors is what happens when a company went through one of its mandatory 2–3 near-death moments.
But fund returns in seed are not a function of simply adding as much lottery tickets as possible. In our case, compensating for being gullible in an earlier part of our career, we went to saying no 10 times more: that is a bit masochistic as we meet so many great entrepreneurs.