Gameplay Galaxy reaches $71 million valuation with $11 million seed extension round

Gameplay Galaxy, a web3 game development studio founded by the creators of the Trial Xtreme series — a popular bike racing game franchise with over 300 million downloads — has raised $11.17 million in a seed extension round.

Blockchain Capital and Merit Circle co-led the round, Gameplay Galaxy said Tuesday. Several other smaller investors also participated in the round, preferring to remain anonymous, Gameplay Galaxy founder and CEO Doron Kagan told The Block.

Gameplay Galaxy began raising money for the seed extension round in May and concluded last month, Kagan said. The round was structured as an equity round with token warrants and brought the firm's valuation to $71 million, Kagan added.

With this seed extension round, Gameplay Galaxy's total funding now stands at $24 million, following an earlier $12.8 million seed round in September 2022.

What is Gameplay Galaxy?

Founded by Kagan in 2022, Gameplay Galaxy is a web3 game development studio that builds on the success of his previous venture, Deemedya. Founded in 2010, Deemedya published several successful free-to-play web2 mobile games, including the Trial Xtreme series, Rope Escape series, Game of Winds and Magic Touch. Collectively, these games claim to have achieved over 300 million downloads and generated tens of millions of dollars in revenue.

Kagan led Deemedya until 2022 and he is now focused on Gameplay Galaxy. "After 20 years in the free-to-play industry and two successful exits, we saw blockchain as the natural evolution for the gaming industry," Kagan said. "With strong conviction, we took our successful Trial Xtreme brand with over 300 million downloads and reimagined it as a web3 ecosystem for extreme sports games."

Gameplay Galaxy is currently developing Trial Xtreme Freedom as its inaugural web3 game. Kagan said the studio's approach integrates web3 features into the game's progression, avoiding paywalls or knowledge barriers. "Players are introduced to web3 elements as optional features, allowing them to engage at their own pace and preference to elevate each player's connection to the game and bring more value to their gaming experience," he said.

Key web3 features of Trial Xtreme Freedom include track ownership, enabling users to host their own tournaments and events. Additionally, players can craft, upgrade and own bikes and earn tokens through in-game experiences.

The game is in the tech soft launch phase, with a full launch planned for the first quarter of next year, Kagan said, adding that the token issuance will coincide with the full launch. "We are working in stages, as it also depends on the app store approval process and the key performance indicators (KPIs) we're refining while we are in the soft launch phases. We're focused on ensuring the best experience for our players and app stores compliance before the full worldwide release," Kagan said.

Gameplay Galaxy plans

The California-based studio currently employs 53 remote workers and has 10 additional positions open as it prepares for its launch and expansion.

"In the coming months, as we expand into more countries and integrate additional web3 features, we'll unveil a new model that allows major brands and KOLs [key opinion leaders] to become stakeholders in our project," "Kagan said.

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