Discord raises $150 million as it starts establishing its PC game store
One of the biggest platforms in gaming has put some more cash in its pockets. Discord has raised $150 million in its latest round of funding at a $2.05 billion valuation. Investment group Greenoaks Capital led the funding round. Firstmark, Tencent, IVP, Index Ventures, and Technology Opportunity Partners also contributed.
Discord plans to use the cash to help get its new store off the ground. It is also continuing to improve its core communications technologies. The company is trying to turn its store and Nitro subscription program into its primary source of revenue. But while it builds up that business, it needs capital to continue attracting talent and ensuring that it can make deals. That includes its First On Discord program that brings in timed exclusives from indie developers.
Discord is serious about trying to make its store work, though. Earlier this month, the company announced that it is going to cut its revenue split with developers to 90/10. That means developers take home 90 percent of a game's sales while Discord takes 10 percent. That is far better than the standard of 70/30 that Valve's mammoth Steam store has offered for more than a decade. It's even better than the 88/12 split that Epic introduced alongside its game store December 4.
That revenue split should attract developers. But Discord's primary advantage is having a massive audience on the PC that always has its app open. Because Discord is a communications tool, people have it on the background. For example, I keep Discord open even when I'm working so I can see what my friends are talking about playing. With 200 million registered users, Discord could take that engagement and turn it into spending in a major way. Even if that just means most people starting with a Discord Nitro, which is a quick and painless way to start building a library of games for $10 per month.