Kabam shareholders raise $38.5M in secondary offering at $700 million valuation

In a secondary offering that raised $38.5 million for shareholders, Kabam has established that it has a valuation of $700 million, the company said today.

It might appear on the surface that Kabam actually raised that money for itself. But the company confirms that the money being raised in the secondary offering is going to Kabam’s shareholders (employees), not the company itself. That means that some existing shareholders or employees have already decided to sell their early Kabam stock and that a new investor is buying them. The company said that those shareholders received $38.5 million from the new investors, and that transaction has established Kabam’s value at $700 million.