Azra Games has defied the funding gods and raised $42.7 million in funding to accelerate development of its mobile role-playing game Project Legends.
The Web3-based game has been in the works since Mark Otero, CEO and veteran entrepreneur, founded the company in January 2022.
In an interview with GamesBeat, Otero said the company’s energy in creating its RPG is focused on providing exciting gameplay, visceral combat, and compelling storylines.
As for Web3, Otero said: “Our philosophy in 2022 was to build a great game first. Build one of the best RPG games in the world. Because that’s the way the game can sustain itself. Once we achieve that, we can extend and use digital technologies, including Web3, behind the scenes to enhance the player experience. But first and foremost you have to build a great game and then start playing for free, and then give people the opportunity to buy a Web3 wallet and take advantage of the Web3 features.”
He said he believes the company has developed a new approach to a new business model that requires free gaming.
“We cannot announce any of our partners at this time,” he said. “This game is a dark fantasy and a mirror of our current times, where the player can illuminate the world in an otherwise dark world. Those are Project Legends.”
Pantera Capital (led by Franklin Bi) led the investment round, with participation from A16z crypto (Arianna Simpson), A16z GAMES (Jonathan Lai) and NFX (Gigi Levy-Weiss). This brings Azra’s total funding to date to $68.3 million. That’s pretty amazing considering the tough investment climate for all gaming companies.
The funding will be instrumental in accelerating Azra Games’ growth and advancing the various projects currently in development, including the groundbreaking flagship game, currently codenamed ‘Project Legends’. The financing underlines investors’ confidence in Azra Games’ vision and potential to revolutionize the mobile RPG genre across all platforms, paving the way for the future.
Otero was known for starting Capital Games, which was acquired by Electronic Arts. Capital Games created the top-grossing mobile game Star Wars: Galaxy of Heroes (Otero’s 8th RPG). That game made EA well over a billion in revenue.
Otero said the huge potential of mobile RPGs yields impressive margins and represents a third of total mobile game revenues. These games have evolved through several generation cycles and are now poised for the most significant paradigm shift in their history.
“We aim to define what I call the fourth generation of mobile RPGs. The first generation emerged with mobile app stores, characterized by text-based RPGs with 2D graphics, limited by limited memory and weak processors,” said Otero. “The second generation saw improvements in the user interface, richer icons and automatic battles with basic animations. The third used advanced smartphone technology and offered 3D graphics, interactive turn-based combat and more advanced controls.
Otero added: “I believe the fourth generation of mobile RPGs is competing with PC and console RPGs, with open worlds, over-the-shoulder camera perspectives, real-time combat and extensive PvE campaigns. It represents a significant paradigm shift in mobile gaming. With our growing team of experts and robust funding, we are excited to bring Western gamers true console/PC quality PRG experiences on their mobile devices.”
A big round
For investors, Otero said he appreciated investors who participated in each round. And he focused on institutional financing through traditional venture capital funds because it offers the company the best way to control its future, he said.
“And we have achieved that. So we have maintained our independence and own all the intellectual property we create,” he said.
In addition to mobile gaming projects, the $42.7 million funding will allow Azra Games to expand its global team of approximately 83 people. By the time the game comes out, the company hopes to grow to more than 120 people, Otero said, with the goal of building a second team. You can see the openings here.
“We’re excited to partner with Azra Games to build a new generation of RPGs based on deep storytelling, mobile-native combat and immersive economies. Mark is the rare entrepreneur who has successfully navigated multiple industry shifts and built billion-dollar franchises in gaming,” said Franklin Bi, general partner at Pantera Capital, in a statement. “Today, Mark is building a truly special team at Azra to define a new standard for mobile role-playing games, open world economies and player empowerment. I can’t wait for the world to see what’s coming and officially join the Azra universe.”
“The team at Azra Games has the incredible opportunity and vision to pioneer the fourth generation of mobile RPG games that combine the creativity of new game formats and experiences with the digital ownership of blockchain,” said Arianna Simpson, general partner at A16z crypto , in a statement. “Mark has an incredible ability to bring out the best in his team, and we can’t wait to see Azra’s vision come to life in the coming months.”
Project Legends from Azra Games channels the gritty, adult atmosphere of 1970s sword-and-sorcery fantasy art. Otero said the team is inspired by legendary artists like Frank Frazetta and Boris Vallejo, capturing the essence of Conan the Barbarian and Heavy Metal Magazine, making it a stark contrast to the current anime-dominated RPG scene, with strong appeal to Western audiences.
“We were inspired by a number of artists, including Boris Vallejo and Frank Frazetta, and there was one more. So inspiration was taken from what made each work of art by these artists unique,” says Otero. “Just like Boris, they were beautiful, supple, feminine human bodies. With Frazetta he captured the essence of flexibility, but positioned it more as a dangerous attitude. And so we wanted to take the essence of what these great artists were known for. And then we translate our own version of that for Project Legends.”
The game is a hybrid of free-to-play Web2 gameplay and blockchain-based Web3, with an emphasis on making sure the gameplay is great first, Otero said. Project Legends, which will soon receive its official name, will be released in the third quarter of 2025.
An abnormal financing round
Otero acknowledged that the round is an anomaly because 2023 and 2024 saw a dramatic decline in funding for pre-revenue gaming companies.
“There is a lack of funding for the most part, as a general theme, and there are probably some outliers like us,” Otero said.
I asked if the company had reached a major milestone that prompted the strong funding round.
“It’s a very good question. I’ll answer some of it. I think what has really got investors excited is the team we’re putting together and the progress we’ve made with the game itself,” said Otero. “We invented what I consider to be a pretty unique combat system, and I think that really resonates, and it’s a testament to the strength of the team and our vision.”
He noted that the company started Azra Labs, which is led by CTO and co-founder Travis Boudreau, with a focus on making breakthroughs in games with smaller teams and high speed.
“I think this really impressed the investors,” he said.
The way forward
Otero said there will be some announcements in the first quarter, with things like partner reveals and Web3 technology choices.
“All of this is to say that we have invested years in a platform, tools and technology to build fourth-generation collectible RPG games,” Otero said. “That is our specialty. That’s why we’ve built out the infrastructure that will allow us to continue creating games that reduce costs and increase speed.”
For testing the game, Otero envisions testing out the gameplay and then backtracking, doing that multiple times. He also expects a lot of content to be released after launch, as the company will first create a free-to-play mobile game. Then it will become a game-as-a-service and hopefully also on PC and consoles.
“We make sure all the KPIs are right, we get the gameplay right, we build the initial audience and then we port the game to multiple platforms,” Otero said.
The state of the gaming market
I asked about the times we live in.
Looking back on the recession of 2008 and 2009, he said he designed his first successful commercial game during that “Great Recession.”
He said such times are difficult for everyone, but they can also be an advantage for teams that have traction and can maintain that momentum.
“This market allows us to attract and recruit talent that would otherwise be more difficult in a different type of market,” he said. “We certainly take advantage of the reality to position ourselves and win.”
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