Elevating Gaming Excellence: Kong Studios' Legal Partnership

How Kong Studios scaled internationally while maintaining their high standard of integrity with support from SPZ Legal.

Coworking space where startup prepares for seed investment

"We consider SPZ as our legal counsel, our internal team, taking care of everything from the legal and compliance side."

 

- Andy Lee, Kong Studios

About Kong Studios

Kong Studios, an international gaming company founded in 2013, is on a mission to redefine the gaming industry. With a core focus on player experience and game quality, Kong Studios has rapidly grown into a global force with over 400 team members spread across Korea, Japan, and the United States, with the support of SPZ Legal. At the heart of Kong's corporate culture lies the value of integrity, driving their commitment to excellence in every aspect of their operations.

SPZ Legal and Kong Studios Partnership

"Our mission for Kong Studios is to prioritize gaming quality first, ensuring a thrilling experience for players while maintaining integrity throughout our operations."

 

- Andy Lee

Problem: The Need for A Personal Approach to Legal Expertise

Since its inception, Kong Studios faced numerous legal hurdles typical of startups. Limited access to tailored legal support, bureaucratic complexities when engaging with larger law firms, and cost-prohibitive legal services were among the primary challenges. Additionally, obtaining practical legal advice aligned with real-world business needs proved elusive, hindering the company's ability to navigate legal landscapes effectively. 

SPZ Legal LP Image Block (1)

Some of the biggest challenges to legal support were:

Difficulty accessing legal assistance: Kong Studios struggled to find suitable legal support as a startup, especially with larger law firms being hard to access and work with.

Complex legal terminology: Communication with previous law firms often involved deciphering complex legal language that didn't translate well to real-life situations, making it challenging for Kong to understand how legal issues impacted their operations.

Bureaucratic processes: Previous law firms had cumbersome chain-of-command processes, making it difficult for Kong to get timely and practical answers to their legal questions.
Cost considerations: Larger law firms were often expensive, presenting financial challenges for Kong as a startup with limited resources. They needed a firm to help them prioritize important legal matters as they scaled.

Urgent legal needs: Startups frequently encounter urgent legal situations that require immediate attention, but Kong found it challenging to get timely responses and support from their previous legal partners.

"We struggled to find a legal team to provide the personalized assistance we needed as a startup. Larger law firms were inaccessible, and we often received generic, bureaucratic responses."

- Andy Lee

Solution: SPZ Legal's Tailored Legal Support

In 2017, Kong Studios forged a strategic partnership with SPZ Legal, a boutique legal team specializing in startup support. This collaboration provided Kong Studios access to personalized legal assistance tailored to their unique challenges. Unlike larger firms, SPZ Legal offered direct communication channels, ensuring quick response times and clear, actionable advice. Moreover, SPZ Legal's cost-effective legal services proved instrumental in optimizing Kong Studios' legal operations without compromising quality or expertise. 

SPZ Legal LP Image Block (2)

Some of the types of support offered through the years have included:

Venture Capital Financing: SPZ Legal advised Kong Studios on its Series A financing and subsequently its Series B financing in 2021, which propelled Kong Studios to unicorn status ($1B in valuation). Throughout the finaning process, SPZ Legal provided comprehensive legal support, including navigating complex deal structures and multinational investors' requirements.

Corporate Structuring: As Kong Studios expanded internationally, SPZ Legal advised the company with its international expansion and operations, including subsidiary formation and establishing intercompany agreements in compliance with transfer pricing requirements.

Commercial Agreements: SPZ Legal provides Kong Studios extensive support on its commercial agreements, enabling Kong to establish strategic partnerships and expand its market reach. This includes drafting and negotiating NDAs, MSAs, and other agreements with vendors; data processing agreements; and licensing agreements with distributors and publishers. Kong Studios relies on SPZ Legal as an extension of its internal team to manage the process seamlessly and efficiently. 

Cap Table Management: SPZ Legal routinely supports Kong Studios on all equity-related matters, including the establishment and administration of a stock option plan to help the company attract and retain top talent globally.

Ongoing General Counsel Support: To the extent that Kong Studios’ legal needs exceed SPZ Legal’s in-house capabilities, SPZ Legal serves as Kong Studios’ outside general counsel by liaising with and managing specialist counsel, including on regulatory matters.

"SPZ Legal became our trusted legal counsel, offering practical advice tailored to our specific needs. They provided real-life solutions that made sense for a small company like us."


- Andy Lee

Outcome: Long-term Partnership, Growth, and Success

The partnership with SPZ Legal brought about transformative outcomes for Kong Studios. SPZ Legal's practical and timely advice facilitated the rapid resolution of legal issues, empowering Kong Studios to focus on core business objectives with enhanced confidence. This long-standing partnership fosters growth and success for Kong Studios in the competitive gaming industry, helping propel Kong Studios from a small startup to unicorn status and 400+ team members spread across the U.S. and Asia.

Startup Lawyers Partner with Gaming Company

Key Takeaways

  • SPZ Legal offers personalized legal support tailored to the needs of startups.
  • Their practical advice and expertise help companies like Kong Studios navigate complex legal challenges with confidence.
  • By partnering with SPZ Legal, startups can focus on their core missions while ensuring legal compliance and integrity.

"With SPZ Legal's support, we gained confidence in our legal operations and were able to focus on our core mission of delivering top-notch gaming experiences. Their expertise and personalized approach have been invaluable to our growth."

- Andy Lee

Let's Propel Your Mission Forward