Ingress Maker Niantic Scores $20 Million for AR Gaming

Niantic on Thursday announced that it was the beneficiary of a big bet pooled together by benefactors Google, Nintendo and The Pokémon Co.

Niantic, which develops augmented reality games, will receive US$20 million in the Series A funding round and could receive another $10 million if it realizes certain undisclosed goals.

  

Legs to Stand On

The company was founded by Google Earth cocreator John Hanke, incubated inside Google, then sheared off into the new Alphabet holding company.
When it became independent of Google, the company needed more fuel to motor forward, according to Hanke.
"The main purpose of this funding is to help Niantic establish itself as an independent company and to fuel growth," he told the E-Commerce Times. "We've got big plans for the future, and this investment is going to lay the groundwork to get us there."
Nintendo and The Pokémon Co. already have committed to working with Niantic on a game that's unlike anything else, so it makes sense that they'd fund Niantic, said Christine Arrington, senior analyst of games at IHS Technology.
"Niantic has existing relationships with these investors, so they already have a vested interest in seeing Niantic succeed, and that success is dependent upon continuing investment in talent, technology and content development," she told the E-Commerce Times.
With the coveted Pokémon IP in hand, Niantic is poised to make notable headway in bringing augmented reality, or AR, to a broader market, said Arrington. But it can't do so alone.
"It will take the introduction of more content and other popular IP getting into the market as well," she said. "The last cycle of these types of AR games in the mid-2000s were mostly niche and were only popular on a regional basis. I think it is too early to tell whether the content is more compelling and interesting this time around."

Big Plans

Niantic, along with Nintendo and The Pokémon Co, last month announced that it was working on a Pokémon game unlike anything the franchise had seen to date, Pokémon GO.
"We're working closely with The Pokémon Co. in order to create a unique experience for people who have been playing Pokémon for 20 years," said Niantic's Hanke.
The Pokémon Co. contributed its Pokémon licenses, Nintendo offered its publishing prowess, and Niantic brought its experience in creating AR games with existing hardware.
In Pokémon GO, players will use their smartphones to scan for Pokémon in the real world. There's also a wearable Poké Ball, which is optional, that players can use to catch new Pokémon or send existing ones into battle.
Pokémon GO will follow Niantic's first game, Ingress. Also an AR game, Ingress puts players on a real-world scavenger hunt and leverages their smartphones to enchant their surroundings with elements of the game.
For those concerned that the startup may neglect the community it has cultivated with Ingress, Hanke touted the strength of the game's fan base. Ingress' global community is active and meets regularly, bringing together people from around the world into an engaging social setting in the real world.
"In the last three years," he said, "we've seen members of the Ingress community get in better shape, make new friends, overcome personal hardships, experience incredible adventures, marry and even have a few Ingress babies."