Leeds-based XR Games has received a $2.6m seed investment from Australian venture capital firm Global Merces.
XR Games develops mobile and arcade virtual reality (VR) games for licensed intellectual properties (IPs).
This is the second round of seed investment, having been supplemented in an earlier round by angel investor Nigel Douthwaite. As part of the deal, Global Merces’ chief investment officer Adam Schoff has joined the XR Games board.
“We’re excited to invest in Bobby Thandi and the team at XR Games,” Schoff said.
“Their business plan for generating revenues in the VR space really stood out to us, and they have an undeniable pedigree of making games for world famous IPs that are enjoyed by millions of players. I’m looking forward to supporting the team as a director.”
The launch team assembled by XR Games co-founder and CEO Bobby Thandi worked together at parent company Dubit on projects for DreamWorks, Mattel, Disney, BBC, PBS KIDS, and other leading companies.
The new funds will allow the business to add to its senior management, expand its design, art and development teams and acquire further IPs.
Thandi said: “Welcoming Adam’s experience and strategic insight to the XR Games board is awesome news. Soon we’ll announce fantastic new additions to our team, well-known names in the gaming world attracted by the trust and investment from Global Merces.
“This strong XR team will design and develop mobile and arcade VR games that we’d love to play ourselves and that are true to our partners’ much-loved IPs.”