Game On: How Jam City Wants to Transform Mobile Gaming into an eSports Phenomenon

William D'Urso
William D'Urso worked at newspapers in Arizona, Milwaukee, and Las Vegas. His career then brought him to the Southland where he worked for the Orange County Register. He has covered everything from breaking news to aerospace to sports. He has written about raids on illegal marijuana grows, the ballooning F-35 budget, and boxers who have taken their final punch.
Game On: How Jam City Wants to Transform Mobile Gaming into an eSports Phenomenon
Jam City

It's all about the evil twins — brothers who look like index-fingers with mustaches, gold teeth, and lead maniacal armies battling for world domination.

That's the premise of World War Doh, Jam City's new real-time mobile strategy game that just rolled out to app stores. But, the Culver City-based company has its own strategy to hook in gamers by taking a page from the eSports phenomenon: Hosting a live champions tournament in the spring.


Think Candy Crush or Dragon Quest on steroids by folding in an event designed to hype the game and turn its top players into virtual-world athletes. Analysts call it a smart move considering eSports is expected to grow this year by about $200 million to an estimated $1.1 billion industry, according to research firm Newzoo.

"I think that's something we probably will see more of, and it's something you see a lot more outside of the U.S.," said Jeff Cohen, a video game analyst with Stephens.

He adds that mobile gaming already controls $70 billion — or more than half — of the wider video game industry. eSports is much smaller, with diversification and acquisitions serving as weathervanes for industry observers, pointing toward deeper market consolidation.

Indeed, Jam City's 2018 acquisition of Bogota, Colombia-based mobile game developer Brainz is what led to the creation of World War Doh. The company raised $145 million last year in a financing led by JPMorgan Chase, Bank of America Merrill Lynch, and a syndicate of lenders including Silicon Valley Bank, SunTrust Bank, and CIT Bank. The cash was designated to support acquisitions.

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Meanwhile, rival Scopely — another game maker headquarterd in Culver City along with Activision Blizzard — has also been an active dealmaker. Scopely snapped up FoxNext (and hit title Marvel Strike Force) in January. The company hit a $1.7 billion valuation last year, cementing it as a unicorn in the video game space.

This is all part of a dive into mobile gaming, which Cohen says enjoys an older demographic with users verging into their late 20s and early 30s. "It's the biggest and fastest growing piece in gaming," he said. "Barriers to entry to the space are low, but barriers to scale are high."

Big hits are still hard to come by, with some companies struggling to reach users. Activision Blizzard reeled in King Digital, the maker of the famed Candy Crush series, for $5.9 billion. The company has struggled to come up with hits since. Cohen said companies with already mature distribution channels might look to suck up fledgling developers to plug into established networks.

Jam City is steadily growing.

Jam City chief executive Chris DeWolfe

Jam City chief executive Chris DeWolfe

In 2017, chief executive Chris DeWolfe told USA Today the company earned $330 million in sales the previous year. Jam City doesn't share sales figures anymore, but with its recent cash haul from a clutch of investment bankers, Cohen said it could be a buyer.

The company could look acquire new titles and plug new apps into its extensive influencer network. It's large portfolio of already-downloaded games offers an advertisement network able to immediately introduce new products to more thumbs and eyeballs.

Jam City has already shown it can reach users. Its Harry Potter game, licensed from Warner Bros., was the company's fastest title to hit $100 million in sales. Its most downloaded game, Cookie Jam, has $700 million in revenue. The company is hoping to get another hit with World War Doh, an original title the company expects to hit users in the 25 to 35 age-rage, with traction all the way down to junior high.

"Mobile gaming has become ubiquitous, everybody plays games whether it's a causal game or a hard core game," said Alejandro Gonzalez, Jam City's co-general manager.

He said the game is a quarter turn from the developer's other puzzle or storyline centric titles, but follows the same in app-purchase model: "The tone of the game and the irreverence of the commander and everything he does is appealing to a younger audience."

World War Doh borrows elements from vastly more complex real-time strategy games. Like eSports blockbuster Starcraft, users can control individual units, moving them in formations, each piece wielding different strengths and weaknesses like chess pieces on a board.

But it is simplified for mobile devices, allowing its player vs player action in the vacant moments of the day; at bus stops, coffee shop lines or subway rides. There are leader boards, leagues, and (perhaps) even cash prizes. Gonzalez said those details are still being worked out, but the money for winners could hit $25,000.

The company will draw revenue through the classic free to download, in app purchase model. Users can purchase gems and coins to help their commander progress. Players who spend big — 14,000 gems go for $99 — are overwhelmingly likely to climb up the leader boards.

The game also features replays of the head-to-head matches, logging them all for players to revisit or post. Similar videos for games popular in eSports like Starcraft can easily rack up hundreds of thousands of views.

Activision Blizzard's contribution to the shift so far was Call of Duty Mobile, launched last fall. The franchise has a long history of success in console gaming, routinely earning critical and popular acclaim.

Newzoo's forecast anticipates major growth in mobile eSports to come from Southeast Asia, Japan and Latin America. Jam City has already developed routes there keeping a key part of its development team in Bogota.

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🏰 Disney's Epic Investment Stands Out Amidst Gaming Industry Layoffs

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

🔦 Spotlight

In the midst of widespread gaming industry layoffs, a glimmer of positive news emerges as Disney announces a significant move: a $1.5 billion investment in Epic Games. 🏰💰🐭

Image Source: Disney

Disney's $1.5 billion investment in Epic Games, disclosed late Wednesday, signals a strategic alignment aimed at expanding the success of "Fortnite." The deal enhances Epic's growth prospects after financial setbacks, including layoffs, and strengthens the partnership between the two companies. With Disney gaining a larger equity stake in Epic, the collaboration will broaden the integration of beloved Disney franchises like Marvel, Star Wars, Pixar, and Avatar into the game, potentially boosting its appeal and longevity. This significant investment underscores Disney's commitment to interactive entertainment and signifies a shift towards games as a primary revenue stream, aligning with the growing trend of digital engagement among younger demographics. Moreover, the potential for crossover sales of physical Disney products within "Fortnite" and the exploration of new content distribution channels are just some of the opportunities arising from this partnership.

For LA tech, the Disney-Epic Games partnership represents a validation of the region's burgeoning tech and gaming ecosystem. The substantial investment in Epic, who maintains a large Los Angeles office with 1,000+ employees (according to LinkedIn), reflects confidence in the LA’s talent pool and innovation potential. Additionally, this partnership between two industry giants fosters an environment for further collaboration, investment, and growth within LA's tech sector. As Disney and Epic Games deepen their ties and explore new avenues for content integration and distribution, it not only elevates the prominence of LA as a tech hub but also stimulates economic growth and job creation in the region. This partnership highlights LA's unique position as a hub where technology and entertainment converge. With its ability to integrate diverse industries, LA is driving innovation and expansion in digital entertainment. 🚀💸🎮

🤝 Venture Deals

LA Companies

  • ProducePay, a financing and marketplace platform for the fresh produce market, raised a $38M Series D led by Syngenta Group Ventures joined by Commonfund, Highgate Private Equity, G2 Venture Partners, Anterra Capital, Astanor Ventures, Endeavor8, Avenue Venture Opportunities, Avenue Sustainable Solutions, and Red Bear Angels. - learn more
  • Blush, an invite-only dating app that drives users to local businesses on dates, raised a $7M Seed Round from individuals like Naval Ravikant. - learn more
  • Mogul, a startup founded last year that provides an overview of an artist's royalty earnings and identifies areas where money is owed but has not yet been collected, raised a $1.9 million seed round from Wonder Ventures, United Talent Agency, AmplifyLA, and Creator Partners. - learn more
  • Avnos, a hybrid direct air capture startup, raised a $36M Series A led by NextEra Energy and joined by Safran Corporate Ventures, Shell Ventures, Envisioning Partners, and Rusheen Capital Management. - learn more
  • AI.fashion, startup whose mission is to help retailers enhance the online shopping experience by providing consumers with virtual try-ons and personalized fashion recommendations, raised a $3.6M Seed Round led by Neo. - learn more
  • Suma Wealth, startup that aims to demystify financial topics and provide culturally relevant content, virtual experiences, and resources to help Latino users navigate financial challenges and opportunities, raised a $2.2M Seed Round . Radicle Impact led, and was joined by Vamos Ventures, OVO fund and the American Heart Association Impact Fund. - learn more
  • 222, a startup that helps users discover their city and meet new people through unique social experiences, raised a $2.5M Seed Round. Investors included 1517 Fund, General Catalyst, Best Nights VC, Scrum Ventures, and Upfront Ventures. - learn more
  • LimaCharlie, a security operations cloud platform, raised a $10.2M Series A led by Sands Capital. - learn more
  • Polycam, an app that uses a smartphone’s sensors to capture 3D scans of objects, raised an $18M Series A co-led by Left Lane Capital and Adjacent, and joined by Adobe Ventures and individuals like Chad Hurley and Shaun Maguire. -learn more.

LA Venture Funds

Actively Raising

  • ReelCall, Inc., an entertainment technology company focused on powerful apps and platforms that help build and maintain the professional network of connections vital to career growth, is raising a $850K Pre-Seed Round. - learn more
  • CZero, a startup building software to decarbonize logistics for logistics businesses and goods business through a vetted marketplace and optimization software. - learn more
  • Couri, a technology startup addressing last-mile delivery issues, is raising a $450K Pre-Seed Round at a $2.2M post money valuation. - learn more
  • Sweetie, a marketplace to help people plan date nights, is raising a $1.5M Pre Seed Round. - learn more
  • StartupStarter, an investment platform that provides real-time data and analytics on startups, is raising an $850K Angel Round. - learn more

If you’re a founder raising money in Los Angeles, give us a shout, and we’d love to include you in the newsletter!

Venture Waves, Climate Tech Wins, and Silicon Beach's Ongoing Evolution

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

Anduril Seeks $1.5B in VC Funds

Defense company Anduril Industries Inc., based in Costa Mesa and founded by Palmer Luckey, is seeking to raise $1.5 billion in fresh funds to boost its valuation to $12.5 billion or more, according to sources quoted by The Information. This fundraising effort, if successful, would mark one of the largest venture capital rounds of the year.

Image Source: Anduril

Anduril recently secured a contract to develop and test small unmanned fighter jet prototypes under the Air Force’s Collaborative Combat Aircraft (CCA) program, beating out major defense companies like Boeing, Lockheed Martin, and Northrop Grumman. Alongside General Atomics, Anduril will design, manufacture, and test these aircraft, with a final multibillion-dollar production decision expected in fiscal year 2026. This program aims to deliver at least 1,000 combat aircraft to fly in concert with manned platforms and is part of the Air Force’s Next Generation Air Dominance initiative. Central to Anduril’s success in this contract is the Fury autonomous air vehicle, acquired through the purchase of Blue Force Technologies. This victory underscores Anduril's rapid advancement in the defense sector, aligning with Luckey's vision of building faster and more cost-effective defense assets. - learn more

Los Angeles Ranks Number 1 in Emerging Climate Tech Hub

The 2024 Emerging Climate Tech Hubs Report by Revolution highlights Los Angeles as a burgeoning center for climate tech innovation. LA's growth in this sector is driven by its diverse talent pool, strong research institutions, and a culture of environmental consciousness. The city's unique mix of legacy industries, such as entertainment and aerospace, alongside emerging tech companies, positions it as a pivotal player in the climate tech landscape. This shift reflects a broader trend of decentralized climate tech funding across the U.S., reducing the historical dominance of California's traditional hubs. - learn more

Silicon Beach: Looking Back, Moving Forward

Assessing the overall health of the startup market is challenging, especially as venture capital funding has decreased by an average of 61% from 2021 to 2023 across the top VC markets in the US. Markets with robust ecosystems in AI, SaaS, Biotech, Healthtech, and Fintech appear to be weathering the downturn better than those focused on Consumer and Gaming industries, areas where Los Angeles traditionally excels.

Percent Change In VC Funding By Region

CB Insights

LA Times paints a rather bleak outlook on the Los Angeles tech scene noting venture capital funding in Greater Los Angeles plummeted 73% from 2021 to 2022. Silicon Beach, once a vibrant tech corridor, currently faces high vacancy rates and lacks late-stage financiers, especially in the AI sector. However, there are positive signs, including growth in aerospace startups and increased venture capital investment in early 2024, suggesting a potential rebound for LA's tech ecosystem.

While LA may not be exceeding expectations during this period, its tech ecosystem warrants a nuanced evaluation, given the broader market dynamics and its strong performance in specific sectors. Reach out to us with your thoughts.

🚀 SpaceX gears up for another stellar year, active raises, and more

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

Happy Friday Los Angeles! You made it through the first week of 2024!

🔦 Spotlight

Elon Musk may be a divisive (albeit entertaining) figure, but the continued success of SpaceX is pivotal for the aerospace industry in Los Angeles and more broadly around the world.

Image Source: SpaceX webcast

What happened with SpaceX in 2023?

  • Elon Musk challenged Facebook founder, Mark Zuckerberg to a cage fight.
  • SpaceX launched 96 successful missions with its Falcon series of rockets, a 57% increase over its previous annual record.
  • SpaceX conducted two test flights of the largest and most powerful rocket ever built, Starship.
  • Roughly two-thirds of SpaceX's launches in 2023 were devoted to building out Starlink, the company's satellite-internet megaconstellation.
  • Isaacson’s Elon Musk biography was published in September including everything from Musk’s tumultuous relationship with his father to his work ethic and “demon mode”.

Moving forward what can we expect from SpaceX and its controversial founder? Continued innovation pushing the aerospace industry to new limits? Yes. More drama? Without a doubt.

Here is some of what is to come in 2024:

🤝 Venture Deals

Just Announced

Check back next week!

LA Exits

  • CG Oncology, an Irvine, CA-based developer of immunotherapies for bladder cancer, filed for a $100M IPO. It plans to list on the Nasdaq (CGON) with Morgan Stanley as left lead underwriter, and has raised around $317m in VC funding. - learn more
  • McNally Capital agreed to sell Advanced Micro Instruments, a Costa Mesa, CA-based maker of gas analyzers and sensing technologies, to Enpro (NYSE: NPO). - learn more

Actively Raising

  • ReelCall, Inc., an entertainment technology company focused on powerful apps and platforms that help build and maintain the professional network of connections vital to career growth, is raising a $850K Pre-Seed Round. - learn more
  • CZero, a hard-tech startup that is developing a technology for decarbonizing natural gas, is raising a $1.5M Seed Round. - learn more
  • Couri, a technology startup addressing last-mile delivery issues, is raising a $450K Pre-Seed Round at a $2.2M post money valuation. - learn more
  • Sweetie, a marketplace to help people plan date nights, is raising a $250K Angel Round. - learn more
  • StartupStarter, an investment platform that provides real-time data and analytics on startups, is raising an $850K Angel Round. - learn more

If you’re a founder raising money in Los Angeles, give us a shout, and we’d love to include you in the newsletter!

📅 LA Tech Calendar

Sunday, January 7th

Wednesday, January 10th

  • Startup Cafe: Networking with a Kick - Entrepreneurs, Startups, and Tech Enthusiasts join together to meet and connect with like-minded people, industry professionals and investors, while enjoying a nice cup of coffee in Venice at The KINN. This week’s interactive discussion about AI’s evolution in entertainment will feature Dr. Sam Khoze and Rachel Joy Victor.
  • Venice Tech Happy Hour- Join Startup Coil and FoundrHaus Wednesday evening and enjoy the sunset from the rooftop, grab a bite overlooking Abbot Kinney, and mingle with other tech enthusiasts and entrepreneurs by the bar on the patio.

Have an awesome event coming up? Reach out to be featured on next week’s Newsletter!

📙 What We’re Reading

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