As Zynga impresses, rival mobile-gaming shop Jam City looks to list via SPAC

Published May 21, 2021

While it would be nice to write about something other than yet another tech company looking to list via a SPAC, the deals keep dropping, so our more traditional fare of covering startup trends will remain on hold for at least one day more.

This morning, we’re looking at the Jam City deal to merge with DPCM Capital. Jam City is a bit like Zynga, but unless you are a mobile-gaming aficionado, you might not have heard of it.

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You likely have not heard of DPCM Capital, either, but you know more about it than you’d think.

As Jam City notes in a release, the SPAC is “led by Emil Michael.” Michael is most famous for his time at Uber, where he served as chief business officer. He left the firm, as The New York Times wrote in 2014, after a board-called “investigation into [the company’s] culture and business practices” led to a “recommendation for Mr. Michael to exit Uber.”

He’s the gentleman who floated the idea of funding a team to “dig up dirt” on Uber’s “critics in the media,” as BuzzFeed News reported in late 2014.

Regardless, we’re not here to go back through Uber and its various cultural messes. We’re here to dig into the Jam City SPAC deck to see if the company is similar to Zynga. Why do we want to know that? Because Zynga has done great in recent quarters, including posting record revenue and bookings in the first three months of 2021.

With lots of folks stuck at home in the last year, gaming has done well in aggregate. And mobile gaming is a huge chunk of the larger gaming world.

More broadly, why do we care about Jam City’s SPAC transaction? Because the mobile gaming concern has raised more than $300 million, including a $145 million round in 2019 that TechCrunch covered here.

The company attracted capital from Austin Ventures, Netmarble, Bank of America Merrill Lynch and JP Morgan Chase while private, per Crunchbase, so we’re very curious if Jam City has enjoyed a Zynga-like last few years and how it’s being valued as part of the SPAC deal. Let’s find out.

Jam City’s SPAC transaction

When Jam City raised that huge 2019 round, co-founder and CEO Chris DeWolfe said that the “global mobile games market [is] consolidating.” At the time, the company intended to use some of its new funding to acquire other mobile gaming companies.

In-car commerce startup Cargo raises $22 million led by Founders Fund

Published September 27, 2018

Cargo, the startup that helps ridesharing drivers earn money by bringing the convenience store into their vehicles, has raised $22 million in a Series A round led by Founders Fund.

Additional investment came from Coatue Management, Aquiline Technology Growth and a number of high-profile entertainment, gaming and technology executives that include Zynga founder Mark Pincus, Twitch’s former CSO Colin Carrier, media investor Vivi Nevo, former NBA commissioner David Stern, Def Jam Records CEO Paul Rosenberg, Steve Aoki, Maria Shriver and Patrick and Christina Schwarzenegger.

To date, Cargo has raised $30 million in venture funding. As part of this latest round, Founders Fund partner Cyan Banister is joining the board.

Cargo provides qualified ridesharing drivers with free boxes filled with the kinds of goods you might find in a convenience store, including snacks and phone chargers. Riders can use Cargo’s mobile web menu on their smartphones (without downloading an app) to buy what they need. Cargo has previously partnered with Kellogg’s, Starbucks and Mars Wrigley Confectionery — companies looking for ways to market their goods to consumers.

“In just a few years, ridesharing has evolved from a niche service to an indispensable element of our global transportation system,” Banister said in a statement. “Founders Fund is excited to support Cargo in driving the next evolution: a better on-trip experience for riders and new revenue generating opportunities for drivers.”

The round follows Cargo’s partnership with Uber and an international licensing deal with Grab. The company, which was founded in 2017, has activated more than 12,000 drivers across 10 cities.

Cargo says it will use the capital to scale its business in the U.S. and internationally. It’s also working on new digital services — a development Banister eludes to — that will improve users on-trip experience. The strategic investments from gaming and entertainment executives is designed to help Cargo develop those digital services for riders.

“Our default behavior in an Uber is to shop, play games and listen to music on our phone. Riders have ordered more than two million products and today transact with us every five seconds,” Cargo founder and CEO Jeff Cripe said in a statement. “We brought riders instant commerce, now we’ll help them discover and enjoy games, music, and entertainment on one in-car platform.”

Existing Cargo investors participating in the round include CRCM Ventures, Rosecliff Ventures, Kellogg’s eighteen94 capital, RiverPark Ventures, and former Uber executives including Chief Business Officer Emil Michael, New York City General Manager Josh Mohrer and former West Coast General Manager William Barnes.

A Tarnished Uber Tries To Woo The Press

Published January 12, 2015

uber-smile1 Tonight we might get a glimpse of the kinder, gentler Uber, but we won’t be able to talk about it. The startup has endured months of disastrous press coverage, including Uber exec Emil Michael saying the company should smear journalists that criticize it.
Now the company has emailed reporters saying “The Uber Communications Team invites you to join us for drinks” at a San… Read More