Blockchain-Based Gaming Startup ClanPlay Raises $2M

ClanPlay, an Israeli startup that developed a social hub for gamers, announced that it raised $2 million in venture capital funding to built “the world’s first marketplace for in-game actions,” Venture Beat reported last week. The Herzliya-based startup, founded in 2016, is using Aion blockchain technology, an open-source blockchain protocol, and cryptocurrency tech, to build a reward platform where gamers can be compensated for in-app actions and participate in tournaments. It’s called the Good Game Marketplace, and it is set to be launched later this year.

The funding round was led by Bicameral Ventures, a new firm launched just this year that invests in projects building on the Aion platform. It was founded by Kesem Frank, co-founder of Aion and Nuco Inc. and Alex McDougall, fintech and M&A investment banking veteran with Bank of Montreal Capital Markets. They will both be joining ClanPlay’s advisory board.

Bicameral Ventures wrote in a Medium post that it was drawn to ClanPlay because of its “ambitious vision…in which anyone can pay players for services inside games, where any gamer can put their skill to the test against each other, where game developers pay players to try out and engage with their games and where advertisers can hone in on hyper-granular target player segments.”

“ClanPlay is the essential intersection between stakeholders on a gaming platform. A marketplace where gamer skills are assigned monetary value and participants can directly incent and monetize in game actions and accomplishments,” the venture firm wrote, adding that the platform is already trusted by leading game developers.

ClanPlay has 2 million users, according to the company. Earlier this year, it became the highest-rated app for gamers on Google Play and iOS with a star rating of 4.8 out of 5.0.

ClanPlay CEO Leonard Frankel told Venture Beat that “Aion’s blockchain platform has given our ecosystem the ability to let gamers profit from their favorite games, without requiring offline bank accounts.” Gamers on the platform will transact using an Aion Wallet.

“The low cost of transactions, speed of the network, and the ability to seamlessly integrate several blockchains into our platform were all differentiating factors in choosing Aion to develop our platform on and collaborate with,” said Frankel.

ClanPlay previously raised investments from founders of gaming companies such as Plarium (sold last year for $500 million), Diwip, and Babil Games.