Catheon Gaming, a blockchain games developer and publisher, plans to kick off its first equity fundraising in May at the soonest, by which it hopes to expand its portfolio of gaming titles, said founder and CEO William Wu.
The company targets a valuation of over USD 500m and could raise around USD 100m-USD 150m, based on an about 20% stake sale, Wu said.
The fundraising process could take about four weeks, for which the firm plans to hire crypto-focused financial advisors soon, said Wu.
Catheon Gaming would prefer investors like crypto exchanges or gaming-related companies to join the equity raise, said Wu.
Catheon Games develops blockchain games in-house and partners with gaming developers to provide blockchain integration, marketing, and publishing services. It currently has seven games in its portfolio, which it aims to grow to 15-20 in the next two months, said Wu.
Proceeds will be used for talent acquisition and expansion of Catheon’s gaming portfolio, said Wu. It targets reaching 1,000 employees and around 50 gaming titles by the end of the year, including metaverse and non-fungible token (NFT)-related games, he added.
Founded in September 2021, Catheon Gaming has generated cash revenue of USD 60m to date, said Wu. Its revenue comprises a USD 55m token raise and USD 3m sale of NFTs by flagship game SolChicks. Sing-to-earn game SeoulStars has generated USD 2m worth of NFT sales so far, he said.
Going forward, Seoul Stars and Angrymals, Catheon’s second two titles launched in February, are expected to generate USD 5m-USD 10m cash revenue each in three to four months post-launch, said Wu.
The company has about 80%-90% EBIT margin, Wu said, adding that marketing costs are lower for blockchain than traditional games given the existence of targeted crypto and play-to-earn audience.
Dechert serves as a legal counsel to Catheon, while Sky Consulting acts as a blockchain-focused legal counsel for the company, according to Wu.
Catheon Gaming, headquartered in the Cayman Islands, currently has 200 employees with hubs in mainland China, Hong Kong, Sydney, Singapore, and Seoul, said Wu, who owns a 100% stake in the company.
Peers to Catheon Gaming include Hong Kong-based Animoca Brands and Australia-based Immutable, said Wu. Other gaming developers are Vietnam’s Sky Mavis, developer of play-to-earn game Axie Infinity.