Certain Affinity, an Austin-based independent video gaming developer, announced today that it has raised $10 million from Leyou Technologies.
In exchange, the Hong Kong-based video game developer and publisher will take a 20 percent ownership stake in Certain Affinity, with the option for Leyou to buy the remaining shares of the company in 2021.
The company launched in 2006 and has released games including Call of Duty: Black Ops, DOOM, Halo: The Master Chief Collection, Halo 4 and Crimson Alliance. Headquartered in North Austin, Certain Affinity has grown to 125 local employees — with plans to expand to 300 by the end of 2020. They are hiring right now in art, design, engineering, operations, production and quality assurance.
“With its proven track record producing high-quality video games, Certain Affinity possesses the technical capability and talent to create highly successful titles, which in turn will assist Leyou in further diversifying its video game portfolio and enhancing its revenue streams," said Alex Xu, CEO of Leyou Technologies, in a statement.
Under the deal, the company will continue to operate independently while creating a new game based on certain licensed intellectual properties under the guidance and support of Leyou. This support includes an interest-free loan fronted by Leyou for up to $15 million to cover any costs that arise during the development of the game, repayable through revenue generated from game sales.
"This agreement launches a partnership to create an ambitious and exciting new game together, while the additional investment allows us to continue developing our own original IPs,” said Max Hoberman, Certain Affinity's president and founder, in a statement. “Certain Affinity has a history of co-development on some of the biggest action franchises in the industry, and we will continue this work in parallel. Our commitment to growing the company and expanding our presence in Austin has never been stronger."
Today’s funding announcement follows one from August, when Capstar Partners, a local private firm, invested $5 million into Certain Affinity.
