# GameFly

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/gamefly

- Industry: Software
- Headquarters: Los Angeles, US
- Website: www.gamefly.com
- Total disclosed funding: $21M
- Latest round: Series C (Jun 1, 2006)
- Investors on record: 3

## About

GameFly, Inc. is a provider of video game and movie rental services, offering a subscription-based model for renting physical media, including new and classic titles, to meet the demands of gamers and movie enthusiasts.GameFly, Inc. was founded in 2002 and is headquartered in Los Angeles, US. The company specializes in video game and movie rentals, utilizing a disc-based rental system. The founders are Qi Wang and Toby Lenk, with Jeff Walker serving as the CEO. GameFly has secured funding through several rounds, with the most recent being a Series C round on October 15, 2020, raising USD 6.18 mn from investors including Sequoia Capital, bringing its total amount raised to USD 6.18 mn.GameFly operates as a prominent provider of video game and movie rental services, catering to a diverse clientele. The company's core offerings include a subscription-based model that allows customers to rent both new and classic video games and movies, utilizing a disc-based rental system. This service addresses the needs of gamers and movie enthusiasts who prefer physical media over digital streaming, providing high-quality audio and visual experiences through 4K UHD discs. GameFly's membership plans include options like the 1-Game and 2-Game Plans, facilitating an efficient rental process with no late fees, enabling users to enjoy a wide library of thousands of titles. The company primarily serves customers across the United States, offering a seamless rental experience with guaranteed shipping and the ability to keep titles at a reduced price, thereby enhancing user satisfaction and loyalty.GameFly generates revenue through its subscription-based model, where clients pay a monthly fee to access its rental services. The company's pricing structure includes various membership plans, with the 1-Game Plan and 2-Game Plan as primary offerings, allowing subscribers to rent one or two titles simultaneously, respectively. Revenue is accrued as customers enroll in these plans, with automatic billing occurring after an initial free trial period. Subscribers can benefit from the GameLock feature, which guarantees access to newly released titles, further incentivizing membership. Revenue is bolstered by the sale of GameFly Gift Certificates, enabling both new and existing members to save on their subscriptions or assist friends and family in engaging with the service. The company’s strategic focus on providing value through competitive pricing and a broad selection of titles positions it favorably within the entertainment rental market.GameFly's future growth strategy includes exploring new products and services tailored to enhance user engagement. The company aims to expand into new markets, particularly targeting regions within North America and looking to evaluate potential international markets by late 2022. The recent Series C funding of USD 6.18 mn will be utilized to support these growth initiatives, ensuring that GameFly remains competitive in the evolving entertainment rental landscape. Notably, in August 2014, AtGames acquired the GameFly Digital business, and Electronic Arts Inc. acquired its cloud gaming technology operations in May 2018. Furthermore, Alliance Entertainment, LLC acquired GameFly Digital in October 2020.

## Funding rounds

- Series C, Jun 1, 2006, $6.2M — Hong Shan
- Series B, Jun 1, 2005, $4.6M — Hong Shan
- Series D, Dec 7, 2004, $8.7M — Hong Shan, Tenaya Capital, Four Rivers Group
- Series A, Jun 1, 2004, $2M — Hong Shan

## Investors

- Hong Shan — Series A, Series D, Series B, Series C
- Tenaya Capital (https://capitalatlas.ai/funds/tenaya-capital) — Series D
- Four Rivers Group (https://capitalatlas.ai/funds/four-rivers-group) — Series D