Los Angeles Business Journal

Game Console Maker Raises $15 Million

By Natalie Jarvey Thursday, May 9, 2013

Video game startup Ouya began production on its mini console last year after raising $8.6 million through crowdfunding website Kickstarter. Now the company has more than doubled its financing to see production through to completion.

The West L.A. company announced Thursday that it has raised $15 million in a round led by Kleiner Perkins Caufield & Byers with participation from firms such as Mayfield Fund, Nvidia and Shasta Ventures.

This is the first round of institutional money that Ouya has raised. Its funding now totals more than $23 million.

Ouya Chief Executive Julie Uhrman wrote in a blog post that the funding allows Ouya to increase production on its console, which taps into the Android mobile operating system.

“It means we’ve got additional resources to make Ouya everything it can be,” Uhrman wrote. “It means that we can increase production to meet our demand and continue to support game developers who are building innovative and exclusive games for Ouya.”

The company did not respond to a request for comment.

Ouya has also announced that it is pushing back the release date for its $99 console from June 4 to June 25. Uhrman cited high demand from gamers and retailers as the reason for the delayed release.

“We are shifting our launch date by three weeks to give us more time to make more Ouyas,” she said.

The company has signed up retailers such as GameStop, Best Buy and Amazon to begin selling the console in June.

But Ouya has been hit by early negative product reviews from tech bloggers, who said the console still needs improvement.