FIRY Divests Exit Games Stake, Realizing 1.1x Return on 2021 Investment

Investment firm FIRY has completed the sale of its 10.5% stake in Exit Games, the Hamburg-based developer of Photon multiplayer networking technology, for $55 million in cash. The transaction, which closed on October 2nd, represents a fully realized return of approximately 1.1x the original $50 million investment made in July 2021. FIRY's exit provides the company with additional capital flexibility while Exit Games' management continues building the Photon platform used by thousands of games including Stumble Guys.

FIRY's divestment marks a notable outcome for an investment made during the 2021 venture capital peak. The firm acquired its stake in Exit Games five years ago, when market conditions were significantly more favorable for technology investments. Paradise's commentary highlights the broader challenges facing venture funds from that vintage, many of which remain largely undistributed. By contrast, FIRY's ability to exit above cost in cash demonstrates Exit Games' sustained value creation in the multiplayer networking space.

Exit Games has established Photon as foundational infrastructure within the gaming ecosystem. The platform's adoption across thousands of titles, including the popular Stumble Guys, underscores its importance for developers requiring reliable multiplayer connectivity solutions. With FIRY's exit complete, Exit Games' management retains full operational control to continue developing and expanding Photon's capabilities across gaming engines and platforms.