Google Ventures Invests In iPhone Game Company
The venture capital arm of the search engine giant was reported to have secured another deal recently, to the tune of $3-5m. Ngmoco (standing for Next Gen MObile COmpany) is a another games developer, in the vein of Zynga (Google’s most recent games purchase). They are manufacturers of what is currently the second most popular game on the iPad, ‘We Farm’.
Google’s investment of $3-5m will only be a small percentage of the companies’ estimated worth, which is valued at over $100m. So some might ask, with the recent acquisition of Zynga for over $100m, what is the point of plugging a few million into this company? Firstly, as Google likes to point out, the VC arm of their company is ‘separate’ to the rest, so we are supposed to believe this is a simple, cash-only equation. However, it’s hard not to think that because of the involvement of Google, an iPhone games company would be persuaded to make titles for Android. Ngmoco has always been a slow starter on the Android platform, so maybe Google is there to give it a little boost.
In fact the Android platform in general has few popular games. Another games manufacturer, SGN, recently received $15m funding, $2m of which came from Eric Schmidt’s personal investment firm Tomorrow Ventures, then promptly started releasing it’s titles on Android.
Where these companies have to be careful is being ‘used’ by people like Google and Apple as part of a larger phone war. I say ‘used’ in quotation marks because they have the potential to earn millions of dollars and become immensely successful, but have to be careful creating about getting stuck in the middle of two warring giants.