Rovio Wants To IPO In New York

Finnish business magazine Talouselämä has published a story on Rovio, the creators of Angry Birds, where they state that the company is seeking to go public in New York. Rovio Board Chairman Kaj Hed, father of Mikael Hed, the CEO, has stated that the $42 million in financing it announced last week was the first step towards this direction. In the story, Kaj Hed also discloses that they were pretty much able to choose their investors and state the terms of the deal - something not many startups get to do in their lifecycle.

"We're aiming to be as large as Facebook or Google", Kaj Hed stated in the interview. The company is indeed on a dream like growth trajectory as it was close to going belly up before they came up with Angry Birds.

Kaj Hed, with his company Trema International Holdings BV, based in Holland, is the largest share holder of the company. Before the $42 million investment Trema International Holdings held more than 80% of the company. Talouselämä has calculated that Accel Partners, Atomico Ventures and Felicis Ventures now own together some 15% of the company, valuing it at around 200 million euros. This is a pretty fair estimate, according to our calculations as well.

The interview has also disclosed how much money Rovio turned over during the last six months of 2010. According to the financial statements the company generated over 5 million in revenue from July to December with a profit margin of 58%, meaning they profited around 3 million euros.

Amazing figures from Rovio and a truly great vision to IPO in New York. Not many people would have believed in this kind of a vision some time ago when things were different. At the moment, it seems that Kaj Hed is getting a tremendous ROI on his investment of 1 million euros he put in the company back in 2005.

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Robert Walpole March 21, 2011

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