Epic Games

Epic Games stands as one of the most influential players in the gaming industry, renowned for its flagship game Fortnite and the groundbreaking Unreal Engine technology. The company is led by co-founder Tim Sweeney, who also serves as chief executive officer, guiding Epic’s strategic direction and innovation. Epic Games is a privately held company, so it is not epic games publicly traded and does not appear on public exchanges like NASDAQ or NYSE. In terms of who owns epic games, its shares are held by its founders, management, employees, venture capital funds, and other private individuals and institutional investors. Beyond gaming, Epic has expanded its footprint into media, entertainment, and digital platforms, establishing a unique ecosystem that blends creativity, interactivity, and technology. The commercial relationship between Epic Games and its partners is central to its business strategy, as these collaborations with other leaders in the gaming and technology sectors drive innovation and market positioning. For investors exploring opportunities to buy Epic Games stock or participate in its growth, the company’s innovative technology stack, global gaming dominance, and strategic investments present a compelling case.

Company Overview

  • Founded: 1991

  • Headquarters: Raleigh City, North Carolina

  • Industry: Gaming

  • Total Funding: $7.86 billion

  • Current Valuation: $22.5 billion

  • Employee Count: 1,001-5,000

  • Website: www.epicgames.com

Highlights for Epic Games

  • Valued at $22.5 billion following its latest funding round.

  • Proprietary products including Fortnite and Unreal Engine drive consistent revenue growth.

  • The Epic Games Store has rapidly expanded, offering over 2,900 titles in FY2023.

  • Annual player spending on Epic's own titles surpassed $950 million in 2023.

  • Diversified revenue streams from gaming, game development tools, and licensing.

Product & Technology

Core Offerings:

  • Epic Games Store: A robust digital distribution platform offering free and paid PC games.

  • Fortnite: A global gaming phenomenon featuring four modes: Battle Royale, Party Royale, Creative, and Save The World.

  • Unreal Engine: Industry-leading real-time 3D creation software and gaming engine used across gaming, film, architecture, and automotive sectors. The gaming engine powers popular titles such as Fortnite, Gears of War, and Infinity Blade, and is available for commercial use.

  • In-Game Economy: V-Bucks virtual currency powers Fortnite’s microtransactions for character skins, battle passes, and in-game assets.

Technology Stack:

  • Advanced real-time rendering capabilities.

  • Cross-platform infrastructure enabling multi-device compatibility.

  • Intuitive developer tools for world-building, animation, and simulations.

  • AI-driven enhancements for immersive experiences.

Competitive Advantages

  • Flagship Titles: Fortnite continues to dominate global gaming charts.

  • Proprietary Technology: Unreal Engine sets the industry standard for real-time 3D rendering.

  • Diverse Applications: Beyond gaming, Unreal Engine supports industries like architecture and film.

  • Strategic Acquisitions: Over 19 acquisitions to bolster animation, 3D modeling, and development studios.

  • Global Reach: Strong community engagement across multiple platforms.

Market Opportunity

The gaming industry remains one of the fastest-growing entertainment sectors, with global PC gaming revenues reaching $36.9 billion in 2020. Epic Games is well-positioned to capture market share through its blend of proprietary titles, licensing technology, and digital storefront. Unlike public companies, Epic Games is a private company, which means its shares are not traded on public exchanges, there is no ticker symbol, and ownership disclosure rules differ, making investment access more limited and less transparent compared to public companies.

Market Trends:

  • Continued growth in free-to-play gaming models.

  • Increasing adoption of cross-platform compatibility.

  • Expansion of virtual economies within digital platforms.

  • Rising adoption of real-time 3D rendering technology.

  • Growing investor interest in pre-IPO companies, with more opportunities emerging to invest in the pre-IPO stage of private companies like Epic Games before they go public.

Financial Overview

  • Annual Revenue: Exceeded $6 billion in 2022.

  • Epic Games Store Revenue Split: Developer-friendly 88/12 revenue model.

  • Spending Trends: $950 million spent on Epic's own titles in FY2023.

  • Player Spending on Third-Party Apps: $310 million in FY2023.

Funding History and Investment Rounds

  • Corporate Funding: $330 million, valuation at $681.81 million

  • Later Stage VC (Multiple Rounds): $7.86 billion, valuation up to $31.5 billion.

  • Latest Round: $1.5 billion, valuation at $22.5 billion.

Epic Games pre-IPO investment opportunities have occurred through these funding rounds, allowing accredited investors to participate before any public offering. As Epic Games has not conducted an IPO, there is no Epic Games IPO price or IPO price available for public investors. The company remains private, so there has not been an Epic Games IPO or IPO Epic Games event to date.

Leadership Team

Tim Sweeney, CEO & Founder:

  • Creator of the original Unreal series and Unreal Engine.

  • Studied Mechanical Engineering at the University of Maryland.

Adam Sussman, President:

  • Former Chief Digital Officer at Nike and VP of Global Publishing at Electronic Arts.

  • MBA from Harvard University.

Randy Gelber, CFO:

  • Former Managing Director of Technology at UBS and Barclays.

  • MBA from the University of Pennsylvania.

Kim Libreri, CTO:

  • Former SVP Technology at Lucasfilm.

  • Studied Computer Engineering at The University of Manchester.

Mark Rein, Co-founder:

  • Instrumental in Epic Games' early growth and business development.

  • Formerly worked at id Software.

Additional Considerations

Growth Drivers:

  • Expansion of Fortnite's in-game economy and seasonal updates.

  • Unreal Engine adoption across non-gaming industries.

  • Growth in the Epic Games Store marketplace.

  • Strategic partnerships with tech and entertainment companies.

Risks and Challenges:

  • Regulatory challenges in digital storefronts (e.g., Apple lawsuit).

  • Highly competitive gaming and digital platform market.

  • Dependence on key flagship titles for revenue.

Future Outlook

  • Continued evolution of Fortnite with seasonal updates and exclusive collaborations.

  • Unreal Engine expansion into industries like film and automotive.

  • Growth in the Epic Games Store's third-party offerings.

  • Potential public offering to further solidify market presence.

Investing in Epic Games stock through the private market offers unique opportunities, but it also comes with a distinct set of risks and considerations that differ from investing in publicly traded companies. As Epic Games is a privately held company, its shares are not listed on public stock exchanges, and there is no readily available stock price or stock symbol for real-time reference. This lack of public market visibility means that private company stock, including Epic Games shares, can be significantly less liquid than public equities.

One of the primary challenges for investors is liquidity. Unlike public companies, where shares can be bought or sold quickly on an exchange, private company stock transactions—such as buying or selling Epic Games shares—often require company approval and may be subject to transfer restrictions. This can make it difficult to exit a position or realize gains in the short term, especially if there is limited market activity or an absence of an active secondary market for Epic Games pre-IPO shares.

Valuation is another important consideration. The stock price for Epic Games is typically determined by recent funding rounds, secondary market transactions, or negotiated deals, rather than transparent market pricing. As a result, the value of Epic Games stock can fluctuate based on private market sentiment, company performance, and broader trends in the video game industry. Investors should be prepared for the possibility that the post money valuation may not always reflect the true market value, and that past performance is not indicative of future results.

Regulatory oversight is also different for private companies. Epic Games, as a privately held interactive entertainment company, is not subject to the same disclosure requirements or regulatory scrutiny as publicly traded firms. This can make it more challenging for institutional investors and accredited investors to assess the company’s financial health, governance, and risk profile. Working with a registered broker dealer and a trusted platform is essential to ensure compliance and access to deep data insights and due diligence.

Additionally, the success of Epic Games is closely tied to the performance of its flagship products, such as Fortnite and Unreal Engine. Any shifts in the gaming industry, changes in consumer preferences, or increased competition could impact Epic Games revenue and, by extension, the value of its private company stock. Investors should also consider broader market risks, such as regulatory changes affecting in-game purchases or digital storefronts, which could influence the company’s growth trajectory.

Given these factors, it is crucial for anyone looking to invest in Epic Games or gain access to private market opportunities to conduct thorough research, understand the company’s business model, and evaluate the competitive landscape. Consulting a financial professional and leveraging the expertise of platforms specializing in private securities trading can help investors navigate these complexities and make informed decisions.

Rainmaker Securities, LLC (“RMS”) is a FINRA (FINRA.org) registered broker-dealer and SIPC (SIPC.org) member. Find this broker-dealer and its agents at brokercheck.finra.org. Our relationship summary can be found at rainmakersecurities.com/disclosures.

RMS is engaged by its clients to make referrals to buyers or sellers of private securities (“Securities”). If such client closes a Securities transaction with a buyer or seller so referred, RMS is entitled to a success fee from the client. Such success fee may be in the form of cash or in warrants to purchase securities of the client or client’s affiliate. RMS or RMS representatives may hold equity in its issuer clients or in the issuers of securities purchased or sold by the parties to a transaction.

This communication is confidential and is addressed only to its intended recipient. This communication does not represent an offer or solicitation to buy or sell Securities. Such an offer must be made via definitive legal documentation by the seller of securities.


Jeremy Nelson