Early-stage technology investor Spark Ventures has sold half its stake in internet gaming company Mind Candy, the creators of Moshi Monsters, for £3.1m in cash.
The deal, which was completed late last week, gives Mind Candy a valuation of £125m, and represents a 15x return on investment for Spark – which purchased an initial stake for £700,000 in 2004.
The acquisition has been made by existing venture backers, coupled with a new private investor. The identities of the buyers have yet to be disclosed.
Founded eight years ago by Growing Business Young Gun Michael Smith, Mind Candy has experienced phenomenal success with Moshi Monsters, a game which allows users to adopt and care for their own monster, and now has over 50 million players worldwide.
Since rolling out Moshi Monsters in 2006, Mind Candy has agreed licensing deals with a number of retailers and consumer products businesses in Europe and the USA, including Penguin Books, for further development of the brand.
Thomas Teichman, Spark Venture Management chairman and Mind Candy director, said: “We backed the brilliantly creative and visionary founder of Mind Candy, Michael Acton Smith, in 2004, and are impressed and delighted by its rapid growth and popularity among children in over 180 countries.
“It’s the second time we have successfully backed the founder in the last 12 years having backed Firebox.com, a successful B to C business, also at start up by Michael in 1999.”