Unity, whose software powers half of all new mobile games, lands $400 million from Silver Lake

Unity Technologies,a 13-year-old, San Francisco-based company that makes development tools for video game creators, has raised $400 million in fresh funding from the private equity firm Silver Lake.A big chunk of the round went toward purchasing the shares of longtime employees and earlier investors, CEO John Riccitiello told Bloomberg earlier today, explaining that he thinks it makes sense to let employees buy cars.

The financingfollows on the heels of the companys last round, closed just 10 months ago, in which the company had raised $181 million from investors led by DFJ Growth.

Others of Unitysearlier investors include China Investment Corporation, FreeS Fund, Thrive Capital, WestSummit Capital, serialentrepreneur Max Levchin, and Sequoia Capital, which remains its largest shareholder. (Roelof Botha, one of Sequoias most powerful investors, sits on its board.)

Investors valued Unity at $1.5 billion last year, according to the New York Times. This new round reportedly brings the companys valuation to $2.6 billion.

Its easy to understand the enthusiasm around the company,whose game engine code that handles games basic operations radically speeds up the time it takes developers to produce a game.

Certainly, it boasts of alot of very impressive metrics, among them that: half of all new mobile games rely on its software for their creation; itpowers 70 percent of all virtual reality and augmented reality experiences; its games and apps reach 2.4 billion devices quarterly; and that mobile developers using Unitys technology generated $12.4 billion in net revenue over the lasttwo years. (Undoubtedly, a big chunk of that derived from last years breakout hit Pokmon Go, which Unitysomewhat famously powered.)

The company says now that the new funding will be used for what it sees next, including increasingly pervasive 3D visuals that will become more ubiquitousin our lives.

Unity does have competitors. Not one to pass up a potentially lucrative market, for example, Amazon last year introduced its own game engine called Lumberyard. Autodesk introduced its own entrant in 2015 called Stingray.

Meanwhile, Riccitiellois a rock star in the gamingindustry. He previously spent five years at the helm of Electronic Arts. Hewas also an early investor in Oculus VR, another Unity customer.

Read more: https://techcrunch.com/2017/05/23/unity-whose-software-powers-half-of-all-new-mobile-games-lands-400-million-from-silver-lake/