Portalone Raises $15M to Revolutionize Gaming & TV

The Rise of Hybrid Gaming: PortalOne Secures $15 Million Seed Funding

The past year has witnessed a surge in popularity for both gaming and streamed video as primary forms of entertainment. Now, a startup focused on merging these two realms – PortalOne – has announced a significant seed funding round as it prepares to exit its closed beta phase.

Introducing PortalOne: A New Entertainment Platform

PortalOne, a pioneering hybrid gaming startup, has successfully raised $15 million in seed funding. This investment will facilitate the public launch of its innovative app, which allows users to engage in on-demand games and participate in live shows featuring gameplay against special guests.

Notable Investors Back the Vision

The funding round is particularly noteworthy due to the caliber of its investors. The list includes prominent names such as Atari and camera manufacturer ARRI, Founders Fund, TQ Ventures (led by Scooter Braun, Schuster Tanger, and Andrew Marks), Coatue Management (specifically Arielle Zuckerberg), Rogue Capital Partners (Alice Lloyd George’s fund), Signia Venture Partners (via Sunny Dhillon), Seedcamp, Talis Capital, and SNÖ Ventures.

Industry Leaders Join the Investment

Further bolstering the investment are contributions from key figures within the gaming and media industries. These include Kevin Lin, co-founder of Twitch; Mike Morhaime and Amy Morhaime, co-founders of Blizzard and Dreamhaven; Marc Merrill, co-founder of Riot Games; Xen Lategan, former CTO and executive advisor at companies like Hulu; and Eugene Wei, previously head of Video at Oculus and head of Product at Hulu.

A Unique Blend of Technology and Media

PortalOne operates at the intersection of technology and media. Over the last three years, the company has developed a comprehensive hardware and software stack capable of building games, recording live broadcasts, and seamlessly integrating the two into a unified experience that combines on-demand and real-time gaming and entertainment.

“The core of our approach lies in the technical complexity of what we’ve built,” explained co-founder and CEO, Bård Anders Kasin. “Our unique methodology is the key differentiator – it’s our proprietary advantage.”

Addressing the Silos in Entertainment

The company is not only focused on technological innovation but also on creating a platform and brand for gaming and live events. Co-founder and Chief Content Officer, Stig Olav Kasin, noted that combining games and television has historically been challenging due to departmental segregation within larger companies, where different teams “own” TV and gaming content.

Early Access and Initial Offerings

PortalOne has been running a limited version of its service in the U.S. and Norway, featuring two games: Blockbuster, a game involving knocking down blocks with a large ball, and a reimagined version of Centipede. These games are accompanied by talk shows broadcast from a computer-generated living room environment.

Users can access the platform via VR headsets or mobile devices, competing in gaming competitions for “prizes.” The company also plans to generate revenue through the sale of virtual goods, similar to models employed by games like Fortnite.

Expansion Plans: PortalOne Arcade

The company intends to launch the first iteration of its service – PortalOne Arcade – later this year in the U.S. and Norway. This offering will feature a collection of 80s-themed, old-school arcade games reimagined as multiplayer, immersive experiences, integrated with interactive talk shows. Subsequent expansion to other markets is also planned.

Founders’ Backgrounds and Expertise

Bård Anders Kasin, with a background in VR development and technical direction at Warner Brothers (including work on “The Matrix” trilogy), and his brother, Stig Olav Kasin, a former media executive involved in shows like “The Voice” and “Who Wants to Be a Millionaire?”, founded PortalOne in 2018.

From 2018 to June 2020, the startup concentrated on developing its technology, content strategy, and establishing initial partnerships before launching its closed beta.

Technological Breakthroughs in Content Creation

The company’s technology stack integrates virtual reality, computer vision, gaming technology, and specialized hardware and software to capture and stream video efficiently, reducing resource requirements. PortalOne developed some of this technology internally, while collaborating with ARRI to create a novel 3D camera specifically for the platform.

A key challenge PortalOne addressed was streamlining the creation of content for its hybrid platform. Traditionally, immersive experience recording is complex and costly due to the specialized equipment and studio infrastructure required.

Simplified Production Process

PortalOne has revolutionized this process, enabling production at a significantly lower cost. “Given our daily show schedule, scalability and mass production of content are essential,” explained Bård.

The PortalOne setup requires only four individuals: the host (Markus Bailey), a guest, and two technician-producers who manage effects and transitions between talk segments and gameplay.

Leveraging Nostalgia and Partnerships

The company is building its own games while also embracing a retro gaming aesthetic. Atari has signed a seven-year agreement with PortalOne, granting the latter exclusive global distribution rights to some of its most iconic arcade game franchises, which will be reimagined for the hybrid platform.

PortalOne also intends to collaborate with brands in music, sports, travel, and education to develop additional games. Scooter Braun’s connections may prove valuable in this regard, as evidenced by Justin Bieber’s appearance in a promotional video.

Industry Recognition and Future Outlook

“The interactive entertainment landscape continues to evolve, presenting significant opportunities,” stated Kirill Tasilov, a principal at Talis Capital. “PortalOne is redefining mobile entertainment by unlocking new hybrid experiences at the convergence of games and video, and we are excited to support their journey.”

The Evolving Landscape of Entertainment

The approach taken by PortalOne isn't entirely unprecedented, as the boundaries delineating games, interactive experiences, and traditional linear entertainment have been progressively dissolving for decades.

One could contend that even early television game shows represented a nascent form of hybrid interactivity. However, more contemporary programs, such as those developed with Stig’s involvement – featuring real-time audience voting via telephone – undeniably advanced this concept.

The Impact of Recent Events

The widespread cancellation of in-person live events due to the coronavirus pandemic spurred content creators to explore innovative approaches to crafting new types of “live” experiences. Marshmello’s successful 2019 Fortnite performance, attracting a substantial audience, foreshadowed the massive turnout of 12 million viewers for Travis Scott’s concert within the game last year. Roblox anticipates that its December event featuring Lil Nas will establish a precedent for future happenings.

Dhillon, a partner at Signia Venture Partners, commented that while virtual concerts within platforms like TikTok, Roblox, and Fortnite are noteworthy, PortalOne represents a progression in interactive metaverse entertainment. It facilitates genuine, real-time, one-to-many interaction among gamers globally, all within a mobile-optimized hybrid game format.

Potential Challenges and Opportunities

Should established platforms embrace this trend, it would validate PortalOne’s development efforts. However, these platforms also possess the capacity to independently create competing live game shows, potentially overshadowing PortalOne as it gains traction.

The company’s investment in technology could prove to be either advantageous or detrimental. Predicting audience resonance within the gaming sphere is notoriously difficult, and this uncertainty extends to the experiences built around these games.

Kevin Lin stated, “The next significant social platform will likely emerge from the convergence of media and gaming, resulting in a genuinely novel and immersive interactive experience. PortalOne is a leading candidate to become such a platform.”

Successfully attracting an audience will enable PortalOne to efficiently and cost-effectively deliver more content. Conversely, failure to resonate with users raises questions about the future application of its technology.

Investor Perspective

Currently, investors are primarily focused on the potential for growth. “As PortalOne expands, it is seamlessly merging the worlds of gaming and entertainment to forge a unified interactive experience and unlock limitless content creation possibilities,” explained Braun.

“Both creators and performers are seeking innovative methods to showcase their talents, and PortalOne is uniquely positioned to meet this demand. I am enthusiastic about collaborating with the team to realize their pioneering vision. I’ve genuinely never encountered anything quite like this.”

Delian Asparouhov, a principal at Founders Fund, also believes that the combination of infrastructure development, technological innovation, and media integration will provide the startup with substantial operational flexibility.

“We invest in companies with the potential to become global category leaders,” he stated. “PortalOne not only establishes a new category but also provides the platform poised to dominate it. The market is receptive, the opportunity is evident, and the potential is boundless. PortalOne is set to redefine the industry.”