This is a guest post by Shai Goldman, a Director at Silicon Valley Bank
Zynga, the biggest casual gaming company in the nation and the maker of popular games titles such as Farmville, CityVille and Mafia Wars, filed for its IPO today.
To summarize quickly, Zynga is performing extremely well. They were profitable in 2010 and will continue to be profitable in 2011 (based on 2011 Q1 figures). They are looking to raise $1B through the IPO and have $996.7 in cash on the books.
One of the highlights is that top line revenue is growing quickly, from $19.4M in ’08 to $121.5M in ’09, roughly 600% growth. It jumped another 500% to $597.5M in ’10 and their 2011 revenue run rate is $941.7, roughly 150% growth. Although their run rate is $941.7 for 2011, revenue expectations are closer to $1.5B, which would be 250% growth from 2010.
Zynga has raised over $500M from New York City investors such as Union Square Ventures, who own 5.5%. Based on this IPO, it would be safe to assume that Zynga’s valuation would allow USV to make back their entire fund $150 million fund from 2008. Read More