The mega-capital funding market is in a bubble, and it could be the next financial technology to take off.
The tech industry is full of promising startups, and the first to emerge from the boom will likely be one of the first, if not the first.
Investment guru and investor Mattel CEO Mattel acquired digital toys and toys-related brands in 2016, including PlayDoh, a digital toy maker, and PopCap, which makes toys for children.
Mattel said the acquisition would give the company a foothold in a growing segment of toys and games that includes toys for girls, boys and their parents.
Mattel CEO Steve Ells says the company plans to be the first digital toy company to go public in the US and is targeting a market of over 10 billion toys.
The company is in talks with potential investors including Sequoia Capital, Fidelity, Morgan Stanley and KKR.
The mega-capitalist’s strategy is similar to one that has become common for tech startups.
They have started by building a network of investors and investors’ families, but the money is not guaranteed.
The founders will likely need to raise more money before launching the business.
Ells says that the company is looking to raise $250 million to scale its business and make it competitive with established brands like Mattel.
“We believe that it’s time for us to be at the forefront of a very disruptive new era,” Ells said.
Mattels first major venture was the purchase of PlayDoll in 2016.
That acquisition has allowed the company to scale quickly and make the company’s toys available for the masses.
That includes a new line of PlayBoys and PlayDolls, as well as a new range of PlayNgos.
In the past year, Ells has been working to grow his company to become more than a toy maker and into a major digital toy player.
Mattels first acquisition in 2018, the acquisition of PopCap in 2021, and its first acquisition of Playdoh in 2022 have all resulted in significant gains for the company.
Mattes growth has been driven by its investments in new brands and investments in the toys industry, which has helped the company become more relevant to young girls.
“We have a number of brands and the acquisition will allow us to grow to be a much more prominent brand in the next generation of digital toy users,” Ellsi said.
