Gate to the Games GmbH↓SIMBA-DICKIE-GROUP
Situation
Markus Schwarze started trading collectible cards while still at school. In 2008 he founded Gate to the Games together with his mother Ingrid, initially from his childhood bedroom. It grew into an online shop for trading card games – Pokémon, Yu-Gi-Oh!, Magic: The Gathering, Dragonball, Digimon and others, sold as single cards as well as boosters, displays and accessories. Its growth can be traced through its premises: first offices in Biederitz in 2015, a move to Schönebeck in 2017, and in 2021 its own warehouse with an office building in Osterweddingen (Sülzetal), with almost 30 staff at the time. In 2019 Schwarze said the company was "clearly among the largest in Germany". With the product range, events for the player community and new projects, funding requirements grew. The question was: where could growth capital come from without the founder giving up control?
Process
IGCP served as exclusive adviser on this strategic capital partnership and identified SIMBA-DICKIE-GROUP as an investor that supports the founder's vision and entrepreneurial direction. That the partner turned out to be a toy group rather than a pure financial investor follows its own logic. Trading cards are part of the toy market, with their own supply chains, licences and retail relationships. A partner from this industry can contribute purchasing power, retail experience and brand knowledge. The chosen structure – a capital increase rather than a sale of shares – channels the money into the company itself and leaves operational responsibility with the founder.
Outcome
SIMBA-DICKIE-GROUP, based in Fürth, was founded in 1982 by Fritz and Michael Sieber and remains family-owned. Its brands include Simba, Dickie Toys, Smoby, BIG, Majorette and Märklin; revenue in 2024 was around EUR 712 million. In 2023 the group invested a substantial seven-figure sum as part of a capital increase. The commercial register shows increases in share capital in September and October 2023 and lists SIMBA-DICKIE-GROUP GmbH and Sieber Holding as shareholders. Markus Schwarze remained managing director. In 2024 Gate to the Games launched its own game, "Neverrift", on Kickstarter; the campaign raised around EUR 235,000 against a goal of EUR 25,000.
What the case shows
Gate to the Games shows that growth capital does not necessarily mean the founder selling shares. Here, a mother-and-son founder business brought a family-owned industry group on board through a capital increase: the money goes into the company, and the founder stays at the helm. Retailers in specialised niches should therefore look beyond financial investors. Manufacturers and groups further along the value chain know the market, the suppliers and the customers – and may have a strategic interest in direct access to an active community of collectors and players. Anyone seeking such a partner should clarify beforehand which role the investor is to play in day-to-day business and which not.