Investment IdeasMy Portfolio

Scopely

Entertainment and mobile games

PRE-IPOmedium risk

Estimated revenue in 2019-2020

Company income
$500M
$900M
Current price
$63
Min Amount
$10
Earliest start
Any time
Fee
Enter 3.50%Leave 0.50%Success 20%

Invest in Scopely

Investment Idea Details
About the company

Scopely is an interactive entertainment and mobile games company. It partners and collaborates with game developers and global entertainment companies to bring distribution and monetization technology to free to play games. Central to Scopely’s success is the publishing platform behind the company’s games, a collection of software tools that help developers more quickly create mobile games, keep them fresh with new content and generate revenue from them. Scopely relies on both external studios and in-house development teams to create the games, and licensing well-known intellectual properties for its games from entertainment companies such as WarnerMedia and CBS.

Scopely oversees marketing, analytics, ads, business development, live ops, quality assurance, community management, and more, empowering developers to focus on building and refining gameplay experiences to earn the loyalty and love of players around the world. Scopely was founded in 2011 in Los Angeles, US, and has offices in Barcelona, Dublin and Tokyo with additional studios in seven countries across four continents. The company has around 1200 employees.

Market Opportunities

Recognized in Fast Company’s ‘World’s Most Innovative Companies’ and #2 on Deloitte’s ‘Technology Fast 500’ as one of the fastest-growing companies in North America, Scopely has achieved more than $1 billion in lifetime revenue by creating long-lasting game experiences. Scopely’s players are spending 80 minutes per-day on games like “Star Trek Fleet Command,” “MARVEL Strike Force,” “Scrabble GO” and “YAHTZEE with Buddies,” and that time spent is actually spent socially.

Mobile technology has reshaped the role that games play in our lives. Mobile games have become a compelling way for people to interact with family and friends, and even build new game-based relationships. Mobile gaming is the fastest growing component within the video games industry. According to Newzoo, approximately 2.5 billion users spent time and money on mobile games in 2019 and mobile gaming revenue is expected to grow to approximately $114.4 billion in 2023, representing a compound annual growth rate of 9.8% from $86.3 billion in 2020.

Risks

Scopely relies on third-party platforms, such as the iOS App Store, Facebook, and Google Play Store, to distribute its games and collect revenues, and such platforms may adversely change their policies.

A limited number of games have generated a majority of the company's revenues, and Scopely may be unable to offset any declines in revenues from its top games.

Customer growth and revenue numbers were borrowed from open sources considered to be reliable. However, there is a risk that the actual financial indicators differ from the data from open unofficial sources, which may adversely affect the value of the company's shares.

Financials and Valuation

Scopely has raised a total of $998.5M in funding over 8 rounds. Their latest funding was raised on Oct 28, 2020 from a Series E round at $3.3B valuation ($38.6 per share). Scopely is funded by 68 investors, including NewView Capital, Battery Ventures, Greycroft, Revolution Growth, Highland Capital Partners and others.

Scopely generates revenue for its free games through advertising and in-app purchases of virtual goods. The company has seen increased user growth and engagement because of COVID. Javier Ferreira, Scopely’s co-CEO, said the company expects to close out 2020 with over $900 million in revenue, up nearly 100% year over year. We estimate that the company will achieve $1.5B annual revenue in 2021 and is currently growing at 50-70%.

Scopely’s projected market capitalization, given it maintains the current growth trajectory, will amount to $9-15 billion on the public market. Given the rapid market growth along with financial information about Scopely from open sources, we estimate that return on investment will be over 150%.

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Publication
25 Sep
Minimum Amount
1 share
2. Buying shares

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Shares Outstanding
Limited
3. Public Offering

United Traders will have shares at its disposal after the IPO. The shares can be sold after the established 6-month Lock-up period. Alternatively, the shares can be hedged for the above period. Prior to the company going public United Traders look for exit options in the OTC market. If we find a great offer, we sell the shares.

Public Offering Date
Pending
Estimated Gains
+150%
4. Taking profit

After the Lock-up period is over, the investment in pre-IPO or OTC will be automatically closed, and generated profits are credited to your account less the applicable UT fees. We offer an opportunity for investors with over $100,000 invested in a specific idea to search for a counterpart in the OTC market individually and to take profits before the company goes public and thereby exiting the trade prior to the Lock-up period expiration.

Exit
̴ 2021
Early Exit

Although it is prohibited to sell shares within the Lock-Up period, our traders find ways to take profits for our investors using various financial instruments: forwards, options, short selling trades, etc.

For an investor the above means that the pre-IPO or OTC investment may be exited after paying a part of its value, usually around 15% which is caused by highly-priced instruments used to close the position. To do so, you should press the respective button in your members area as soon as it becomes active.

The exiting process is similar to making a new investment. You submit a request, we execute it within 1 business day, and your investment is closed at the current exchange price.

Fees

ENTRY FEE

3.5% of the share purchase amount. The fee is charged at confirmation of your investment bid.

EXIT FEE

0.5% of the share sell amount after the trade. The fee is charged at the investment exit.

SUCCESS FEE

20% of the profit gain. The fee is charged only if the trade is profitable at the time of exiting.

EARLY EXIT FEE

Usually a 15% fee is charged subject to the actual situation at the exchange. The fee is calculated individually for each investment.

What Are the Benefits of Investing with United Traders?

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HIGH PROFITABILITY

Venture investing is very risky as they involve new or growing companies, and multifold increase in capitalization is expected. We prioritize companies at the pre-IPO stage as they already demonstrate strong financial indicators and plan to go public soon. This approach allows limiting hyper-risks related to insolvency of new companies and substantially increasing profits as compared to investors who buy shares through a subscription just before the IPO.

LOW ENTRY THRESHOLD

To buy the OTC stocks, one would need millions of dollars. We gathered a pool of traders and investors allowing everyone interested to join similar transactions with as much as $10.

Risks

United Traders is experienced in minimizing risks but a future investor should be aware of all risk types:

  • Illiquidity. There is a possibility that early exit from this investment will take more than 1 month.
  • Asymmetric information. Management and current investors have access to more internal information about the company than other market participants.
  • Time uncertainty. There is no information regarding next financing round or exit strategy timeframe (IPO or M&A).
  • Share dilution. The issue of additional shares by a company may reduce the value of shares of existing investors.

Invest in Scopely

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