Neon: Putting players and developers at the center of gaming

The consumer internet is at a tipping point. For years, Apple and Google have maintained a stranglehold on mobile game developers, taking 15-30% of every dollar their users spend in app. But these global monopolies are finally beginning to crumble as legal action by the DOJ and industry giants force change.

Neon is building the platform to put power back in the hands of developers, accelerating the gaming industry’s shift to a more competitive, fair, and open ecosystem. We’re excited to be a part of Neon’s $14 million round, alongside Thrive Capital, a16z Speedrun, Griffin Gaming Partners, SciFi VC, and Ribbit Capital. 

Neon lets game developers run their own webshops, selling digital products to players and without paying the 30% platform tax. Its secure checkout handles everything under the hood, including payments. For developers in 45 countries around the globe and expanding, this is a no brainer, and it shows – in the last five months, Neon’s total processing volume has increased by 100x.

At Renegade, we invest in companies that we believe can become movements. That means they’re purpose-driven, attack a market at a tipping point, and build a compounding advantage. Here’s why Neon is a movement.

Purpose-driven

Neon was founded by Chris Faught, formerly on the Apple Pay team at Apple and a commercial director at Affirm. During his time at Affirm, Chris experienced how novel payments products could be a powerful growth engine for D2C merchants. In particular, a collaboration with Shopify showed him how the right software could help small businesses become more financially independent.

Chris and his team are also gamers – he has always loved how games bring people together and tell compelling stories. But he grew frustrated with market dynamics that constrained developers and made it harder for them to share their work. This led Chris to start Neon, using his fintech and ecommerce expertise to tip the balance of power away from monopolistic app store operators and towards game studios.

Attacking a market at a tipping point

This is one of the most exciting moments in the consumer internet, as legal challenges seek to turn the app store model on its head. Fortnite-maker Epic Games successfully sued Google, finding that its Play Store and Play Billing services are illegal monopolies. Now the DOJ is taking aim at Apple, accusing it of blocking out competitors, stifling innovation, and keeping prices artificially high.

The prize is big. Analysis from the trials shows Google’s Play Store revenue is $11 billion a year at a whopping 62% operating margin, while Apple takes $15-18 billion with a 78% margin. These are dollars taken directly from developers, who currently have no other options when it comes to payment processing. Some 70% of Apple’s App Store revenue is generated from games. But this isn’t just about app stores. Increasing regulatory pressure on Apple and Google will filter through to any type of marketplace, including giants like Amazon and Shopify, allowing online vendors more choice in their service and payment providers. 

Building a compounding advantage

A key element of the new creator economy is the more intimate relationship between brands and their customers that we’ve come to expect in traditional ecommerce. Neon brings this concept to the gaming world, enabling studios to create rich, personalized experiences that allow players to connect, buy, and engage in dedicated spaces. This fosters greater loyalty, turning players into repeat customers – over one-third of players who purchase on a Neon-powered webstore make multiple purchases each month.

Neon’s approach also fixes the gaming industry’s broken monetization model. By connecting developers directly with players, they are freed from the grip of third-party app stores, allowing them to keep more of their revenues and reinvest them into creating even better games for their community. The result is a more dynamic, player-focused ecosystem, where creativity and connection are at the forefront of the gaming experience. 🎮

We partner with ambitious founders pushing to transform entire industries. If that’s you, let’s talk. hi@renegadepartners.com