Building a Global Games Company with e-Residency

Cupcake Entertainment is a Brazilian/Estonian fast growing mobile and Facebook games developer and publisher. We want to help people exercising their brains while having fun and our goal is to be the #1 casual brain puzzle games company in the world and all of our games, and everything we do in the company, is aimed at that specific goal.

Our target audience is women over 35 years old. Most of them are in the US, but also in UK, CA, DE and FR. Not by accident as Cupcake and our games were built with that audience in mind. The Change the Game research by Google Play found out that 65% of women aged 10 to 65 in the US play mobile games and 49 per cent of mobile gamers are women.

Cupcake was founded in 2012, initially doing outsourcing and advergames. In 2012 and 2013 we launched our first two games, which failed commercially but were an important learning in the making of Letters of Gold, which is currently our biggest game and is the one the led us to only work on our own games. Letters of Gold is a word search puzzle, a mix of the traditional word search games with puzzles like the ones you find in Candy Crush.

In 2014 we were accepted into Startup Chile, which is the biggest startup accelerator in Latin America. It helped us improve the business side of the company and we started seeing some early revenue growth in early 2015.

After that we got into GameFounders, which is a Estonian startup accelerator for game companies in a batch they ran in Malaysia. GameFounders was crucial for building our network in the industry and improving our games and by the end of the program we were growing really fast, about 45% a month, a growth rate we sustained for 18 months!

The networking we gained from GameFounders, as well as sustained growth rate, led to a recognition in the games industry which resulted in a $1M investment by Thailand’s Playlab in 2017. Nowadays Cupcake is one of the biggest games companies in Brazil and we are building the structure for further growth.

During GameFounders we established our Estonian Oü company and became e-residents. Being e-residents became really important for us because of a cultural trait of Cupcake: we are all remote. There’s not a Cupcake office anywhere and being able to run the company from anywhere in the world is really important to us.

Our remote team is scattered all over Brazil, and one guy is in Germany. We communicate on a daily basis using video and all of our process were designed to work remotely, even hiring. I won’t get into the pros and cons of remote working in this article, João will write another article detailing how we work remotely, but it is something that works really well for Cupcake and we wish to continue.

We already run many services from the Estonian company and our goal is to actually set foot in Estonia, move the team there if they wish to (many do) and hire people in Estonia, but still work remote. After all, that’s the whole point of e-residence, to allow people to run their companies from all over the world.

Author: Gabriel Stürmer

CMO of Cupcake Entertainment.