Game streaming site Twitch just sold to Amazon for $US970 million in cash, and it’s a big win for everyone involved, including Twitch’s investors.
The company last raised money one year ago at a $US100 million valuation, a source tells Business Insider. That’s not counting the few million it raised in its first form, Justin.TV.
Twitch raised $US35 million in total from investors such as Bessemer Venture Partners, Thrive Capital, and Draper Associates. Bessemer’s Ethan Kurzweil served on the startup’s board.
Bessemer is the largest investor in Twitch.
Twitch began in 2011 as a pivot from another startup, Justin.tv, which launched a few years prior.
Twitch, which allows users to post and watch videos of video game run-throughs, was a hugely popular segment of Justin.tv’s traffic. Twitch amassed 8 million views in its first month, and it became so poular that it eventually took over Justin.tv’s business in its entirety, as the company officially changed its name earlier this year. The site now has 55 million viewers.
Another Justin.tv spin-off, SocialCam, was previously acquired for $US60 million, so spin-offs and pivots seem to be the founders’ strengths.
It’s unclear how Justin.tv’s original investors, including Y combinator and Asop Louie Partners, made out in the Twitch acquisition, but you can guess it was pretty good. Paul Graham’s accelerator program Y Combinator wrote the first $US50,000 check for Justin.tv.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
Business Insider Emails & Alerts
Site highlights each day to your inbox.