In recent years, more and more parties have been interested in investing in the esports ecosystem, including venture capital companies. Even in the midst of a pandemic, investment in the realm of gaming and esports is still flowing. Here are some of the investments and acquisitions that took place throughout November 2020.
Fnatic Receives US $ 10 Million and Holds Crowdfunding
Fnatic, an esports organization from Europe, received an investment of US $ 10 million last month. The internal funding round is being led by Beringea, a venture capital firm with operations in the UK and the United States. Several other investors who invested in the funding round include Unbound, LVL1 Global, and JHD. Fnatic revealed that the investment they get will be used to strengthen their brand and esports team. In addition, they will also use these funds to expand globally.
Apart from internal funding, last month, Fnatic also held a crowdfunding campaign through Crowdcube. At that time, they set a target to get GBP 1 million to sell 0.99% of their shares. Before they offered their shares to the general public, there were investors who bought their shares. So, don’t be surprised if Fnatic managed to raise GBP945 thousand before they even sold their shares to the public.
Fnatic plans to use the crowdfunding funds to realize their short-term plans. They estimate, they will start making profits in 2023. According to their predictions, by 2023, they will get income of US $ 73 million and EBITDA (Earning Before Interest, Taxes, Depreciation, and Amortization) of US $ 3 million.
Immortal Gaming Club Get Invested
Last month, Immortals Gaming Club (IGC), an esports organization from North America, also received a disbursement of US $ 26 million. The funding was led by Meg Whitman, a member of the IGC board. Two other investors who invested in the funding round include Anschutz Entertainment Group (AEG) and March Capital Partners. Both have invested in the IGC before this.
IGC said they plan to use these funds to develop the brand for their esports team. In addition, they will also channel part of that investment to Gamers Club with the aim of enriching their game portfolio and expanding their reach.
Griffin Gaming Partners Raises US $ 235 Million in Gaming and Technology Funds
In November 2020, Griffin Gaming Partners managed to raise an investment of US $ 235 million to be allocated to the realm of gaming and technology. They plan to invest at least half of this fund in companies that focus on gaming platforms and infrastructure. The remaining funds will then be invested in game studios and content creation.
As a venture capital firm, Griffin Gaming Patners has invested in various gaming and technology companies, including Discord. Not long ago, they also provided capital to the game developer Frost Giant Studios.
BLAST Get Funds from Edge Investments
Danish esports tournament organizer BLAST has secured an investment of GBP 1.7 million from British company Edge Investments. BLAST said they would use these funds to strengthen their operations in the UK and expand globally. Apart from capital, BLAST will also utilize Edge’s expertise and network to optimize their ability to hold esports tournaments.
“Edge’s decision to invest in us is proof that the esports industry is growing, even though there have been various problems for many people this year,” said Robbie Douek, CEO of Blast, quoted by Esports Insider. “We chose Edge so we could leverage their expertise and networks in content distribution, media promotion and event hosting.”
ReKTGlobal Partners with Vikkstar
Esports company ReKT Global has made Vikram “Vikkstar” Singh Barn the co-owner of their Call of Duty League team, London Royal Ravens. Vikkstar is a gaming influencer from England. As co-owner of London Royal Ravens, Singh Barn will create a new content format. In addition, he also plans to independently create merchandise, promotional activities, and esports tournaments, apart from the tournament held by ReKT Global.
Queens Gaming Collective Receives Early Stage Funding
Queens Gaming Collective, a women-focused gaming lifestyle company, managed to raise $ 1.5 million in seed funding. The funding was led by BITKRAFT Ventures. In addition, there are 12 other investors who support the Queens Gaming Collective, including women entrepreneurs and business leaders. The funds will be used by the Queens Gaming Collective to find qualified workers, create content, and support the career growth of female creators and streamers in the world of gaming and esports.
Investment and Other Funding
Last month, Edge Esports Ltd, a startup that creates payment solutions and contracts for esports players, received an investment of US $ 1.5 million. Led by Blake Picquet, the investment round was also joined by Green Egg Ventures, Game Tech Ventures, and Robert Reeg. The investment funds will be used by Edge to strengthen their internal team.
Meanwhile, gamer performance analysis firm Statespace raised US $ 29 million in Series B funding, led by Khosla Ventures. They received this disbursement of capital six months after they closed their Series A investment round, which was worth US $ 15 million in May 2020. At that time, the funding round was also led by Khosla Ventures. Statespace CEO Wayne Mackey said their top priority at this time was to grow their platform.
StreamHERO, an ad network for streamers, received a pre-seed investment of US $ 550 thousand. The investment round is led by Adventures Lab. StreamHERO will use these funds to create new monetization tools for streamers and a new analytics system. Meanwhile, in November 2020, Hitmarker, the gaming and esports job search platform, held a crowdfunding campaign on Crowdcube. They sell 4% of their shares for extra capital. Their target from the crowdfunding campaign is GBP 200 thousand.
GAMURS Group, the parent company of Dot Esports, recently acquired the Pro Game Guides platform. To do that, they use funds from their investors, including the Aura Group. Next year, GAMURS plans to buy several other companies in the gaming arena.
GAMURS is not the only company that made acquisitions last month. Corsair Gaming also recently purchased Gamer Sensei, an esports training platform. With this, Gamers Sensei will become a division of Corsair. In addition, Take-Two Interactive also signed a contract agreement to acquire Codemasters for US $ 980 million. If the agreement is approved by shareholders and regulators, the acquisition is expected to be completed in Q1 2021.
Overall, throughout November 2020, total investment in the realm of games and esports reached US $ 306 million. In comparison, the total investment in the world of gaming and esports throughout 2020 has exceeded US $ 6.44 billion.