Why we invested in Overwolf, creator tools for the gaming sector

Samsung Next is particularly keen on supporting companies that are decentralizing and democratizing their industry sectors. We are especially interested in entrepreneurs working at the intersection of gaming and the creator economy, and who have a passion for enhancing games and videos. 

We think there is a lot of growth potential for companies in the $159 billion gaming sector. Roblox, for example, is emblematic of how big the opportunity is for providing tools that enable creators to develop new games for users. Roblox has been wildly successful, going public in April with a $41 billion valuation. We are confident that Roblox is not the last decacorn that will emerge from the nexus of gaming and creativity.

One company we think has the technology and user base to be the next big thing is Overwolf Ltd, a platform designed to help in-game creators develop, distribute and monetize in-game apps and mods to help improve user experiences. A mod, short for modification, is an in-game change to the way a video game looks or functions.

Overwolf’s potential to gain traction in the rapidly growing creator economy explains why Samsung Next recently joined Insight Partners and Griffin Gaming Partners in a $52.5 million investment round. Other investors in the company include Intel, Liberty Technology, Marker LLC, Ubisoft, Warner Music Group, and Yossi Vardi.

What makes Overwolf unique is that it enables creators to develop overlays and modifications for popular games. While Roblox facilitates the creation of standalone games, Overwolf enables individuals to enhance core game experiences. Overwolf has built a development framework for in-game creators, an app store for users, and tools that enable creators to monetize their work.  

From the creator’s perspective, Overwolf ensures that users are recognized for their contributions and are able to easily integrate their work into games–building their own community of supporters along the way. From the publisher’s perspective, content creation can be outsourced in a way that is controlled, secure, and financially viable. And, from the gamer’s perspective, more content is available for longer periods of game  play. 

By collaborating with creators, brands could potentially use Overwolf to integrate products into game play. For example, putting the latest Nike shoes on a favorite character. Influencers of all kinds can offer customizations ranging from the voices to the physical features of characters.  All of these individual preferences make games more organic and natural. For gaming studios, passionate creators are adding new elements that make the games more engaging.

Suddenly, the gaming studios and publishers have an army of additional creators that are developing customized content. The technology to create these new monetization and creative opportunities is all done with Overwolf’s technology. There’s real magic happening here, and we think it’s an exciting investment opportunity.

Jonathan Machado is a Senior Investment Director for Samsung Next

If you’re a founder, we’d like to meet you.