Skillz, the online skill-gaming company, announced this afternoon a Series A round of funding. Led by Atlas Venture, Andrew Paradise’s gaming company raised $5.5 million in the new round.
Launched in April, Skillz has had over one million users download the gaming tournament platform. The company made news by creating the first gaming platform where users could earn cash or virtual currency through Skillz-enabled online games.
The new round of funding will allow Skillz to expand its marketing and customer service teams and grow its developer relations team as additional studios continue to integrate with the Skillz platform.
Paradise, Skillz’s CEO and founder, said in the press release that the new funding will be helpful because his company is “expanding rapidly based on the success of our early developer partners.” He added, “We always knew cash tournaments would significantly boost revenue for mobile games, but developers have been impressed by how much Skillz has increased retention of their hard-earned players.”
In a press release announcing the deal, Atlas Venture Partner Jeff Fagnan commented on Skillz place as both an industry leader and disruptor in the mobile gaming sector. “By enabling these competitions in many of today’s most popular games,” Fagnan said, “Skillz is transforming an industry while creating a better ecosystem for both gamers and developers.”
Currently, Skillz players can earn money in the 37 states where skill-games, those involving ability rather than luck, are legal.
Dennis Keohane is a staff writer for VentureFizz. You can follow Dennis on Twitter (@DBKeohane) by clicking here.