The Norwegian tech company Play Magnus AS has raised $13.5 million in a private placement financing round.
Through the private placement backed by existing investors including MP Pensjon PK and Myrlid AS, the Norwegian venture fund Investinor has acquired a ca. 7% ownership stake in the company.
– I’m very proud of how well Play Magnus has developed, especially in recent years. The fact that professional investors are now investing big in chess will contribute to improving the entire sport. For me it’s also important that this professionalisation of chess contributes to improving the financial conditions for potential chess professionals, says World Chess Champion and co-owner Magnus Carlsen.
After the private placement Carlsen holds around 16 percent of the shares in Play Magnus through the company MagnusChess.
– Investinor has both the capital and expertise needed to help Norwegian companies out into the world, and we look for companies that can become world leaders in their field. We believe Play Magnus has a unique position and a clear potential to take a large share of the global online chess market, says Investinor Investment Director Patrick Sandahl.
Play Magnus is focused on creating the best digital experiences for playing, learning and watching chess. Founded in Norway, the company quickly entered the global chess market and today has users in every country in the world apart from North Korea and South Sudan. Play Magnus has more than 50 full-time employees and offices in Oslo, Hamburg, Riga, Copenhagen and Barcelona.
The company will use the proceeds from the private placement to improve its existing services and launch into new areas of the chess industry.
– This funding round marks encouragement for the new strategic path we have set the company on in 2019 by merging with chess24 and acquiring Chessable. With these new investors on board we are ready to take the next steps in this enormous market, says Andreas Thome, CEO at Play Magnus.