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Company founded by Nikki Lannen folds as start-ups across the gaming sector struggle due to a decline in venture capital funding.
WarDucks, a highly-regarded gaming developer has gone out of business, it confirmed on Tuesday.
A creditors meeting is to be held on Tuesday next in Dublin to consider liquidation of the company. The news comes as start-ups across the gaming sector have struggled due to a decline in venture capital funding in 2023.
Founded in 2013 by Nikki Lannen, formerly a senior member of Facebook's gaming team, WarDucks has raised over $6 million in funding to date from backers that include EQT Ventures and Sure Valley Ventures.
The company launched a number of best-selling games across mobile, desktop and console platforms over the years. Titles included Sneaky Bears, RollerCoaster Legends and My Smooshy Mushy.
“It is with great sadness and a very heavy heart to say that WarDucks has ended its journey.
“We have had a tremendous 10 years with great achievements to remember including 6 best selling virtual reality games, our kids mobile game Smooshy Mushy which has over 3M downloads, a mobile 4X game with strong KPIs and a visit from Apple’s Tim Cook to our Dublin office.
“All of these memories will be greatly treasured,” Lannen, chief executive of the firm, said in a statement.
“However, due to market conditions we have had to make this difficult decision. We put a funding round together last year but it collapsed during negotiations and it has been a struggle ever since.
“The mobile games industry is having a tough time right now. More than one-third of video game developers were impacted by lay-offs in 2023 and it's estimated that more than 7,000 jobs were lost last year,” she added.
Lannen went on to thank her “heroic” team, investors, and advisors for their support.
Recently filed accounts for WarDucks show it made a loss of more than €1.6 million in 2022, which brought retained losses on the company’s balance sheet to more than €6.6 million.
The accounts also show WarDucks revenue plunged by more than 80 per cent in that same year to just over €100,000.
The accounts also show WarDucks revenue plunged by more than 80 per cent in that same year to just over €100,000.
Venture capital funding in the gaming industry peaked in the fourth quarter of 2021, with a total of $33 billion. Companies raised $454 million in venture capital funding in the third quarter of 2023, down 9 per cent on the prior three months, according to Konvoy Ventures.
Riot Games, the esports giant that employs over 300 people in Dublin, has also been impacted by the negative sentiment. It announced on Tuesday that it is to cut 530 jobs across the company with the Irish operation expected to be impacted by the news.
www.businesspost.ie
WarDucks, a highly-regarded gaming developer has gone out of business, it confirmed on Tuesday.
A creditors meeting is to be held on Tuesday next in Dublin to consider liquidation of the company. The news comes as start-ups across the gaming sector have struggled due to a decline in venture capital funding in 2023.
Founded in 2013 by Nikki Lannen, formerly a senior member of Facebook's gaming team, WarDucks has raised over $6 million in funding to date from backers that include EQT Ventures and Sure Valley Ventures.
The company launched a number of best-selling games across mobile, desktop and console platforms over the years. Titles included Sneaky Bears, RollerCoaster Legends and My Smooshy Mushy.
“It is with great sadness and a very heavy heart to say that WarDucks has ended its journey.
“We have had a tremendous 10 years with great achievements to remember including 6 best selling virtual reality games, our kids mobile game Smooshy Mushy which has over 3M downloads, a mobile 4X game with strong KPIs and a visit from Apple’s Tim Cook to our Dublin office.
“All of these memories will be greatly treasured,” Lannen, chief executive of the firm, said in a statement.
“However, due to market conditions we have had to make this difficult decision. We put a funding round together last year but it collapsed during negotiations and it has been a struggle ever since.
“The mobile games industry is having a tough time right now. More than one-third of video game developers were impacted by lay-offs in 2023 and it's estimated that more than 7,000 jobs were lost last year,” she added.
Lannen went on to thank her “heroic” team, investors, and advisors for their support.
Recently filed accounts for WarDucks show it made a loss of more than €1.6 million in 2022, which brought retained losses on the company’s balance sheet to more than €6.6 million.
The accounts also show WarDucks revenue plunged by more than 80 per cent in that same year to just over €100,000.
The accounts also show WarDucks revenue plunged by more than 80 per cent in that same year to just over €100,000.
Venture capital funding in the gaming industry peaked in the fourth quarter of 2021, with a total of $33 billion. Companies raised $454 million in venture capital funding in the third quarter of 2023, down 9 per cent on the prior three months, according to Konvoy Ventures.
Riot Games, the esports giant that employs over 300 people in Dublin, has also been impacted by the negative sentiment. It announced on Tuesday that it is to cut 530 jobs across the company with the Irish operation expected to be impacted by the news.
Irish gaming developer WarDucks goes out of business
Company founded by Nikki Lannen folds as start-ups across the gaming sector struggle due to a decline in venture capital funding.
www.businesspost.ie
