CrowdStar

About CrowdStar

CrowdStar carved a niche in the gaming industry by developing mobile and social games specifically targeting a female audience. Founded in 2008 by Suren Markosian and Jeff Tseng, the company initially focused on creating titles for the Facebook platform. Early successes included games like "Happy Aquarium" and "Happy Pets," which propelled CrowdStar to become one of the top developers on Facebook, at one point boasting 31 million daily active users.

A significant strategic shift occurred in 2012 when the company, under the leadership of then-CEO Peter Relan, pivoted to prioritize the mobile gaming market. This move was driven by the observation that the Facebook gaming audience was plateauing and the desire to cater more effectively to their core demographic of women. The company secured substantial funding, including a notable $23 million round in 2011 from investors like Intel Capital and Time Warner, to fuel this transition. This new direction led to the creation of its most recognized titles, "Covet Fashion" and "Design Home".

"Covet Fashion," launched in 2013, operates as a social-network-game hybrid where players act as stylists. They dress up virtual models for various challenges using clothing and accessories from real-world fashion brands, and the community votes on the best looks. This model not only engages players but also serves as a marketing platform for over 175 partnered brands, driving traffic to their e-commerce sites. "Design Home" applies a similar concept to interior design, allowing users to decorate virtual rooms with furniture from actual brands, which can also be purchased in real life. The business model for these games is freemium; they are free to download and play, with revenue generated through in-app purchases of virtual currency and through brand partnerships and advertising. In November 2016, Glu Mobile acquired a controlling interest in CrowdStar for approximately $45.5 million, a move that proved highly successful for Glu, whose stock price saw a significant increase following the acquisition. The deal was seen as a way for Glu to become a leader in the fashion game category.