Gate Ventures invests $1.45 mln in VC-backed PlayJam


Gate Ventures PLC invested 1 million pounds ($1.45 million) for a 5 percent stake in PlayJam, a UK-based technology company that delivers online big-screen gaming and video-on-demand content to users. Gate’s share of the company will increase to 8 percent  if certain criteria are met.

PlayJam is backed by Adobe Ventures, GameStop, Cox Communications and Chinese venture capital firms Innoplay and Avit PLC.

PRESS RELEASE

Gate Ventures plc, an investment company focused on the media, entertainment, e-commerce, fashion retail, consultancy & operational projects, today announces that it has completed a £1 million investment in PlayJam, a technology company focussing on the distribution of interactive content. Gate’s investment represents a 5% stake in PlayJam, which will increase to 8% based on certain criteria being met.

PlayJam is a UK based technology company that delivers online big-screen gaming and VOD (video on demand) content to hundreds of millions of users in over 80 countries, through its plug-in devices for Android-powered TV. PlayJam is backed by high-profile blue-chip investors including Adobe Ventures, GameStop – the world’s largest games retailer, Cox Communications – a top tier US cable operator, as well as two China-based venture capital companies, Innoplay and Avit PLC.

The PlayJam platform, in addition to assisting Gate distribute content for its current and potential investee companies, presents a further route for Gate to expand its e-commerce and fashion retail businesses. PlayJam launched services recently in the United States and is working with a range of tier-one and tier-two Multi System Operators (“MSO”), industry-leading set-top box manufacturers and silicon providers to power a suite of Over-the-Top (“OTT”) services, including TV-ready games directly into the living-room, which is a rapidly expanding market.

In addition, PlayJam has recently added significant scale to its operations in the growing Chinese market, through its investors and strategic partners, Innoplay and Avit. Gate will assist PlayJam in establishing close relationships with leading players in the gaming and content industry in China owing to Gate’s already extensive network in the region.

The Company’s £1 million investment in PlayJam will part fund the Investee’s working capital to drive activities that accelerate user growth of its platform. This includes expansion of PlayJam’s distribution network and activities, in particular in China and other emerging markets, optimising the promotion and advertising function of its platform, and improving the platform’s purchasing systems and customer relationship management system.

As part of the agreement, the Company and Playjam have agreed to set up a Joint Venture (“JV”) in the Asian marketplace, including but not exclusive to China, Hong Kong, Macau and Taiwan, where Gate Ventures will possess 80% and Playjam 20% of the JV. In addition, Richard Carter, Chief Financial Officer of Gate Ventures has been appointed director of Playjam with immediate effect.

Dr Johnny Hon, Chairman of Gate Ventures PLC, said: “The investment in PlayJam represents the continuation of the Company’s investment in the high-tech media sector and diversification of Gate Ventures’ expanding portfolio. We believe that our investment will give PlayJam the resources and knowhow to further expand into the Chinese high-growth home gaming and entertainment space. PlayJam’s position in the high-tech media industry will complement Gate’s other investee companies, allowing the Company to continue its progression as one of the leading entertainment and high-tech media organisations.”