Tapjoy scores $30M to boost mobile app monetization
Tapjoy raised $30 million in a Series D round of funding led by J.P. Morgan, with existing investors Rho Ventures, North Bridge Venture Partners, InterWest Partners and D.E. Shaw Ventures also contributing. The new funding follows just six months after Tapjoy raised $21 million. The firm said it will leverage the latest round to explore potential acquisitions.
Tapjoy's monetization and distribution platform spans more than 1,000 mobile applications and 200 million consumers. The new funding arrives several months after Apple (NASDAQ:AAPL) began aggressively rejecting iPhone and iPad applications that offer incentives--e.g., virtual currency--to encourage consumers to download other apps. These pay-per-install apps historically have represented a substantial component of Tapjoy's monetization model. After recently surveying 496 iOS developers, Tapjoy found that two thirds of respondents credited the pay-per-install concept for generating 20 percent of revenues, with some saying PPI revenues accounted for more than 60 percent of their earnings.
Tapjoy has responded to the Apple ban by shifting its focus to rival platforms, most notably Google's (NASDAQ:GOOG) Android. Last month, the company introduced a new $5 million fund earmarked to galvanize developer interest in porting games to Android--the program offers both financial and developmental support, including full porting and testing services to guarantee the ports work on all premier Android smartphones. Developers also can leverage Tapjoy's virtual currency monetization engine, its game state virtual economy management server, its mobile analytics tools and related value-added services.
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