Razer began as a maker of gaming peripherals and has expanded into PCs, VR, wearables, social networks and other immersive gaming technologies. The company acquired Nextbit (maker of the Robin smartphone) earlier this year and plans to use that technology to develop gaming-first handsets. Razer is pursuing mobile through a strategic partnership with carrier Three to sell co-branded gaming handsets, offer gaming-centric tariffs and open a retail store in Hong Kong. It operates an investment arm, zVentures, and integrates virtual-currency and esports initiatives into its ecosystem. Financially, Razer has disclosed around $125 million of investment to date but has confirmed it has raised more; sources say Horizons Ventures invested between $50 million and $100 million valuing the company close to $2 billion. The company has signaled it is positioning itself for a public listing or the next stage of corporate development as it broadens products and services. Razer began as a maker of gaming peripherals such as mice, controllers and keyboards and has expanded its brand into gaming-optimized laptops and consoles. The company has been pushing into more immersive hardware, including wearables and virtual-reality devices, as well as cameras such as the $200 Stargazer webcam that uses Intel RealSense for enhanced video and motion detection. Razer has partnered with other hardware firms on products (for example with Lenovo on high-end gaming computers). That push into new hardware categories is described as costly and relatively untested. Company financial documents referenced in the coverage show a swing to a net loss between October 2014 and September 2015 after a net profit in fiscal 2014. Razer has previously taken strategic investment from Intel and had backers including Accel and IDG Capital Partners. Razer makes high-end gaming hardware and software, including peripherals, full systems and wearables. Its product lineup features mice, keyboards, the thin Blade gaming laptop, and the upcoming Nabu smartband, alongside a range of software platforms. The company reports over 10 million software users and more than 2 million daily logged-in users. Razer recently closed a funding round with Intel that values the company at at least $1 billion, though the article does not disclose the round size or instrument. It is preparing to launch the Nabu smartband in the coming weeks and plans to leverage partnerships such as Tencent to integrate services (including WeChat) and gamification to broaden its user base. A leaked internal memo also notes the appointment of three new board members as part of its next phase of growth. Razer builds high-end gaming peripherals (mice, keyboards) and has been expanding into more esoteric devices, full systems and game-specific partnerships. The company has recently released systems such as the Blade gaming laptop and has branded products like StarCraft II mice and keyboards. Razer plans to push further into whole-systems products, which the article says requires more R&D and operational space. The new capital is intended largely for R&D, with a particular focus on gaming user interfaces and systems. Management says the investment and the incoming board member should not affect day-to-day operations and described the deal as “fairly straightforward.” The company and the investor both see strategic upside in the China market, which the article notes is rapidly growing and PC-centric.

Total raised

$125M

Funding rounds

4

Latest round

Series C

Latest activity

Feb 2016