OMGPOP: Last Leap Of Faith Brought A Home Run

Although the financial details were off limits during Zynga’s conference call announcing the purchase of OMGPOP, the details were later revealed in a SEC filing which is a requirement for public companies like Zynga.  As allthingsd and TechCrunch reported Zynga bought 100% of the outstanding stock of OMGPOP for $180 million dollars.

It’s been well documented, and it seems as if CEO Dan Porter has no bones about admitting it, before Draw Something, the future at OMGPOP was uncertain.  They had received $16 million in funding over the previous four years, however as Betabeat reports their last round of funding before Draw Something was more of a hail mary round.

More after the break
OMGPOP’s $16 million dollars came from a number of rounds and included: Spark Capital, Baseline Ventures, Betaworks Marc Anderseen, Bessemer Ventures, Rho and Soft Capital Bank. Several of the investors re-upped more than once however toward the end of 2010 things weren’t so bright.

Fortune Magazine’s Dan Primack said in his newsletter:

“Bessemer declined the opportunity to participate in a follow-on round at its pro rata rate, and outside leads were non-existent. So Spark agreed to basically do a super pro rata bridge, while promising to beat the pavement for other firms to join. By January, it had convinced Rho Ventures and Softbank Capital to come aboard, with Bessemer reportedly also participating to a certain extent.

OMGPOP’s final round yielded $10.1 million dollars despite the fact that investors were growing worried. OMGPOP had been around four years and hadn’t seen a mega hit or hit after hit the way Zynga had. Primack reported that early stage investors for OMGPOP just had a gut feeling about the team that’s now part of the Zynga family.

Source: Betabeat

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