// startup autopsy
Backflip Studios
DragonVale's fire eventually burned out — and Hasbro couldn't relight it.
acquisition gone wrongAcqui-hire
Fatal mistake: Became overly dependent on DragonVale as its sole revenue driver, failing to develop a sustainable pipeline of new hit games post-acquisition by Hasbro.
Key Events Timeline
FOUNDING
Backflip Studios founded in Boulder, Colorado by Julian Farrior, entering the early mobile gaming market.
FUNDING
Raises $145K in initial seed funding to develop mobile games for the App Store.
PRODUCT LAUNCH
DragonVale launches and becomes a massive hit, generating millions in in-app purchase revenue and vaulting Backflip to prominence.
PRODUCT LAUNCH
Hasbro makes a strategic minority investment in Backflip Studios, recognizing the mobile gaming opportunity.
PRODUCT LAUNCH
Hasbro acquires Backflip Studios for approximately $112M, making it a wholly owned subsidiary.
DOWN ROUND
DragonVale revenues decline sharply as mobile gaming competition intensifies; new titles fail to gain traction.
SHUTDOWN
Hasbro shuts down Backflip Studios, laying off most staff after the studio fails to produce another hit and DragonVale revenue dries up.