COVID-19 has left us longing for human connection even if it’s through video chat. This is no different for gamers who have long chatted with friends and opponents while using Facetime or other video chatting applications. Bunch has built the integrated video chat solution that allows friends to connect and chat in real-time during their gaming experiences, focusing on establishing meaningful connections amongst fellow gamers. The company has experienced rapid adoption all over the world, growing more than 50 times in monthly active users since March!
AlleyWatch caught up with CEO and Cofounder Selçuk Atli to learn more about the genesis for the company, the impressive traction during the pandemic, and the company’s recent funding round.
Who were your investors and how much did you raise?
We raised over $20 million for this Series A funding round, and the funding was led by General Catalyst. Investors in this round include top gaming companies such as Electronic Arts, Krafton (PUBG), mixi, Take-Two Interactive Software, Inc., Ubisoft, Supercell, Riot Games, Miniclip, and COLOPL. Other investors include LVP, Northzone, Streamlined Ventures, Konvoy Ventures, OneTeam Ventures, Velo Partners, Golden Venture Partners, and Alven Capital Partners.
Tell us about the product or service that Bunch offers.
Bunch is the party app for multiplayer games. It’s the easiest way for players to connect with friends over video chat, and jump into their favorite games. Developers can also integrate Bunch into their own games to boost engagement by letting players party up with friends and play together. Inspired by ‘LAN parties’ where gamers get together and play video games in the same room, Bunch delivers the same experience on smartphones and tablets—anytime, anywhere.
What inspired the start of Bunch?
I grew up with LAN parties, as did my cofounders, playing games like Starcraft and Counter Strike — where a lot of the fun is the live banter you have with friends. When we started Bunch, we wanted to bring this kind of experience to mobile, where players could play with friends anytime, anywhere.
How is Bunch different?.
While in-game chat solutions offer an easy way for players to communicate and coordinate with people they match with, it doesn’t lead to meaningful connections that expand beyond the game session. Gamers also use standalone applications like FaceTime and others to chat before and after the game, but these apps don’t integrate with the game and don’t make it seamless to move together into the same game session.
Bunch offers a more accessible and integrated way to chat with friends before, during, and after playing their favorite games.
At Bunch, we’re building the world’s first massive real-time social network where you experience the joy of multiplayer games with your friends face-to-face.
What market does Bunch target and how big is it?
We’re targeting users who look at gaming as a great way to spend time with friends.
When we went to the market, we saw that the Generation Z audience, 14-15-year-olds, who love to play Roblox and Minecraft, were our most retentive users. But now, people spend over a million minutes a day with their friends in Bunch all over the world. Because of the growing pain of social isolation all over the world, our audience has expanded into millennials, where the average age is 23 years old and our users are 61% female!
What’s your business model?
Bunch is free to use and does not currently monetize as we’re focused on growing our user base and network of developer partners.
How has COVID-19 impacted the business?
Multiplayer games are the new social networks. And in these trying times where we are isolated from each other, games are how people are choosing to spend time with friends. Each game is a disconnected island, and at Bunch we are creating one way for players to connect with friends inside and outside of their favorite games.
Since the beginning of March 2020, Bunch saw rapid adoption all over the world, growing more than 50 times in monthly active users. Alongside the remarkable growth in its user base, Bunch saw its audience become more mainstream, expanding from GenZ and slightly more male – to millennial players who are 60% female.
What was the funding process like?
We were excited to bring on Niko Bonatsos with General Catalyst as lead investor as we’ve gotten to know each other over the years, and I think he’s one of the best investors in consumer social. I’m looking forward to the combined guidance of Niko and David Lau Kee with London Venture Partners, who is one of the best gaming-focused investors, on the board.
What are the biggest challenges that you faced while raising capital?
We’ve started our fundraise shortly after starting to see strong growth in March even though we had recently raised a round (November 2019). It was initially challenging as in early March a lot of investors seemed to be taking a pause, given uncertainty and changes in user behavior. But with continued growth, and gaining the conviction of our investors, we were able to put together an amazing group.
Also with the sudden growth, we initially struggled to keep our servers up so players had consistently great experiences on Bunch. But my cofounders Jason Liang, Jordan Howlett, and our engineering team have done an amazing job scaling our infrastructure quickly.
What factors about your business led your investors to write the check?
According to Niko Bonatsos, managing director at General Catalyst, Bunch’s investors are “big believers in Bunch’s long term vision to create one place where people gather with friends to play all of their favorite games. And the enthusiastic and unprecedented support Bunch has from the games industry is a testament to the company’s potential to define the next standard in multiplayer games.”
Players are looking for ways to connect with the same friends across all of their favorite games on any platform. The game companies who invested in Bunch share our vision and are excited about the potential to create and participate in such an industry-wide network.
What are the milestones you plan to achieve in the next six months?
By the end of 2020, we expect to grow our user base and accelerate integrations with popular multiplayer games.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
My advice would be to continue focusing on their users while being diligent in their expenses, and finding creative ways to grow. With remote work and entertainment, a lot of behaviors are changing, which gives way for startups to tackle existing problems with new ways.
My advice would be to continue focusing on their users while being diligent in their expenses, and finding creative ways to grow. With remote work and entertainment, a lot of behaviors are changing, which gives way for startups to tackle existing problems with new ways.
Where do you see the company going now over the near term?
We want Bunch to become the place friends come together to play their favorite games, on any platform.
What’s your favorite outdoor dining restaurant in NYC
Cafe Mogador in the East Village is definitely a great outdoor brunch spot that’s open!
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