Investing in organised esports means investing in the future of entertainment, according to Esports Investments: the Escalating Odds in Competitive Gaming, one of Esports BAR’s several authoritative White Papers on the sector.
Based on research on the finances raised last year, this exclusive report encapsulates the vast array of financing initiatives taken to support the burgeoning esports business.
Inspired by the knowledge shared by experienced international investors during debates at Esports BAR Miami in 2019, the findings pin down the trends in funding a universe beloved by today’s youths, especially Millennials and Gen Z consumers.
The funds are currently going to mostlys esports start-ups and high-growth operations. They include esports organisations, esports teams, esports players, esports entertainment companies, esports media ventures, esports technology and esports service providers.
The financing looks set to go far because digital-first esports alone involves the following related media-and-entertainment extensions.
Competitive gaming takes financiers into:
- The global video-games business, which is worth an estimated US$160bn;
- Tthe industry of live entertainment via professional esports tournaments;
- The screen-media sector, which includes the thriving live-streaming platforms and the humongous traditional linear-broadcast TV; and
- The equally colossal world of professional sports, where the concept of teams, franchises, leagues and trophies has influenced esports extensively.
The money merchants pouring capital into the esports and other competitive-gaming cultures include the following:
- Venture-capital companies with dedicated esports divisions (like Hiro Capital, Artist Capital Management, Galaxy EOS VC Fund)
- Private-equity firms with dedicated esports divisions (like ATU Partners, Bpifrance, Swedbank Robur)
- Esports-dedicated venture-capital companies (like Trust Esport, BITKRAFT Ventures, Konvoy Ventures, Gaming VC)
- Media-and-Entertainment groups and celebrities (like MTG (Modern Times Group), Universal Music Group, Harris Blitzer Sports & Entertainment, Sony Corporation, Isle of Media, Will Smith, Jennifer Lopez)
- Traditional sports organisations and athletes (like the NBA, the English Premier League, Michael Jordan, David Beckham)
- Esports-dedicated investment funds (like aXiomatic Gaming, ATU Esports growth fund)
- Exchange-traded funds (like Roundhill BITKRAFT Esports & Digital Entertainment ETF, VanEck Vectors Video Gaming and eSports UCITS ETF)
- Stock exchanges via IPOs (like NASDAQ, NASDAQ First North Growth Market Denmark)
- Tech conglomerates (like Tencent Holdings, Apple Inc., Google, Facebook Inc.)
- Individual entrepreneurs (like Lev Leviev of LVL1 Group, Alibaba Group Holding’s Joseph Tsai, India-based Tej Kohli)
- Non-endemic brands (like Louis Vuitton, L’Oréal Paris, Porsche AG, Red Bull, Lion Cereal, DHL)
Delve into Esports Investments: the Escalating Odds in Competitive Gaming to discover the investments’ beneficiaries and why esports funding continues to grow.
Although based on estimated findings, research firm CB Insights calculated that investors committed more than US$1.85bn to esports in 2017 from US$309m in 2013. Esports Business Solutions UG/The Esports Observer figures indicate the volume of crucial disclosed deals rose to as much as US$4.5bn in 2018.
Download the Esports Investments: the Escalating Odds in Competitive Gaming White Paper for:
- An insight into the value of the global esports sector and how far esports investments have developed
- An analysis of esports by geographical region in 2019
- An examination of esports funding by various categories, from entertainment to tech platforms
- A roll-call of the key players in esports investment
- An exploration into esports betting as a hot investment vehicle
- Plus exclusive interviews with investors from Trust Esport, Konvoy Ventures and strategic advisor Han Park