Another successful funding round has taken place in the user-generated gaming ecosystem. This time, the main actor is Megamod, a gaming platform created for massive multiplayer UGC. The company raised nearly two million USD and plans to invest the capital into its business operations. With a current evaluation of 27 million USD, Megamod will try to reach more players and creators in the coming months. One of its main advantages is that it offers an incredibly fast turnaround cycle for all of its user-generated content.
Hand of Midas Investment Group
This investment round was led by a group of financial organizations that are no strangers to technology entrepreneurship. Among them is Alexander Agapitov, whose company Xsolla is a video game payments juggernaut, currently worth over three billion USD. Hand of Midas Investment Group is an organization led by Agapitov, and it provided a substantial sum of the 1.9 million USD round. Rubylight Fund was also involved, as well as a number of private investors. This may seem like a small sum compared to funds raised in the AAA and AA gaming industry, but for Megamod, it’s a perfect opportunity for quality business development. The company’s main creator tooling systems are already up and operational, so this money will probably be used efficiently.
About Megamod
The launch of this UGC platform took place in early 2023, with a clear target audience – gaming creators who have limited expertise in development and players interested in huge multiplayer experiences.
Initially, Megamod’s goal was to make the gaming creation cycle not just cheaper, but faster, as well. Presently, it states that the price of a single unit of content (in other words, a game) on the Megamod platform, is $5 on average. This helped attract over 2,000 creators in the last six months alone. Over 60,000 units of content were created, averaging about 30 experiences per creator. It’s a huge number, especially when compared to other UGC ecosystems. For example, nearly a year after Epic Games launched Unreal Editor for Fortnite Creative (UEFN), 15,000 creators managed to publish some 80,000 islands. So, it’s clear that both the barrier of entry and the turnaround cycle in Megamod is attractive to creators who don’t have much technical prowess.
Monetization and Retention
The money that Megamod raised in this investment round will go mainly towards its go-to-market strategy. The system plans to test different monetization models, as well as user retention. All of these are even more important when you consider the fact that Megamod already has its early version platform built and ready for gamers and creators alike. Anyone interested, can simply visit the website of the platform, log in using an account or as a guest, and enter the Megamod digital world. No launchers or downloads are needed, and the game also offers mobile cross-platform access. Additionally, platforms like CrazyGames, which hosts free online gaming releases, feature Megamod creations. The experiences made in Megamod attracted over 340,000 players so far – in a very short time frame. All of this shows that the platform is more than ready for a wider audience.
Simplicity and Speed
For many, the initial impression of the Megamod platform will likely be one of a stripped-down version of Minecraft. However, behind the plain, voxel-like graphics, is a powerful system ideal for massive multiplayer micro-gaming sessions. With a development cycle that is measured not in days or weeks, but in hours, Megamod creators can build extremely short gaming experiences, many of which last up to 30 seconds. These can be instantly accessed by countless gamers, with a layer of social interactions that the platform offers. It’s a potent mixture for a large chunk of the casual gaming audience.
Using proper monetization incentives, Megamod could attract many creators who are working in several UGC ecosystems. On their platform, these creators can test out their ideas faster than anywhere else and quickly have thousands of players trying them out. This alone could be the inroad for the Megamod toward a much bigger creator community, which is essential for any UGC platform that is only starting out.
