Skillz, a mobile eSports platform, has raised $6 million in funding led by Atlas Venture, with participation from additional investors including NextView Ventures. Skillz adds a new element to mobile games, allowing gamers to join multiplayer competitions to win cash prizes. The company currently pays out more than $10,000 daily in tournament prizes and operates more than 50,000 competitions a day across hundreds of mobile titles. While the platform is proving to be popular with gamers, developers are also benefiting from Skillz, as the revenue generated from tournament fees is proving to be a lucrative monetization strategy.
The new capital, which was a mix of venture debt and equity, will allow Skillz to fund a multi-million dollar user acquisition program available exclusively to developers launching games on the Skillz platform. The user acquisition program will help developers attract new players into their games while driving consumer awareness of mobile eSports. Skillz last raised $5.5 million of Series A funding at a roughly $31 million valuation in 2013.