Sports Venture Capitalists Backing the Future of Esports

Sports venture capitalists are taking notice of the growing esports industry, with many investing in teams, leagues, and platforms. This is a smart move, as the global esports market is projected to reach $1.5 billion by 2025.

One notable example is a16z, a venture capital firm that has invested in several esports teams and platforms. They've also partnered with major brands to create innovative marketing campaigns.

The rise of esports has created new opportunities for athletes, with many professional gamers earning six-figure salaries. In fact, the world's top esports players can earn up to $1 million per year.

The eSports industry has seen a significant influx of investments from venture capitalists (VCs) in recent years. By 2016, the eSports market was valued at $493M, but jumped to $903M by 2018.

VCs have taken notice of the eSports industry's growth and are now actively investing in it. In fact, the eSports market has only increased in value since 2018.

Some notable investments in the eSports industry include Vindex, which raised $60M in October 2019, and Mainline, which raised $6.8M in its second round of funding. These investments demonstrate the growing interest in the eSports industry.

Investors are focusing on various areas of the eSports industry, including existing eSports teams, developing an eSports division out of an existing franchise, or establishing a new team altogether. This diversification of investments is a sign of the industry's maturity.

Here are some recent investments in the eSports industry:

The eSports industry is no longer just a niche market, but a significant player in the world of sports and entertainment.

The esports business and finance landscape is a rapidly growing and evolving space. Venture capitalists have taken notice, with investments in the industry skyrocketing in recent years.

The esports market was valued at $493M in 2016, but jumped to $903M by 2018. Its value has only increased since then. Investors have taken their time to jump on the esports rush, but it's all hands on deck now.

VCs are investing in various aspects of the esports industry, including teams, franchises, and platforms. Vindex, for example, raised $60M in October 2019, while 100 Thieves raised $35M in a Series B round. Mainline, eFuse, and Artist Capital Management have also received significant funding.

Here are some recent investments in the esports industry:

The diversity of investors in the esports industry is a sign of its maturity. Venture capitalists lead the way in investments, followed by private equity and other investors.

The esports industry is a multi-million dollar market that's growing rapidly. The market value jumped from $493M in 2016 to $903M in 2018, and it's only increased since then.

Investors are taking notice and investing in the industry. Venture capitalists lead the way, investing in existing esports teams, developing an esports division out of an existing franchise, or establishing a new team altogether.

There are five main investment opportunities in esports that investors tend to focus on: Investing in existing esports teamsDeveloping an esports division out of an existing franchiseEstablishing a new teamMonetization platforms for brandsTalent recruitment and sponsorship deal sourcing

These opportunities are driving growth in the industry and attracting more investors. The recent investments in Vindex, Mainline, eFuse, Artist Capital Management, and 100 Thieves are just a few examples of the significant funding happening in esports.

For another approach, see: Meghan Markle's New Business Venture Has Reportedly Faced a Setback

Corporate Venture Capital is a practice where large firms take an equity stake in small but innovative or specialist firms to gain a specific competitive advantage. This is not the same as traditional venture capital, but rather a specific subset of it.

Corporate Venture Capital (CVC) has a long history, dating back to 1914 when Pierre S. Du Pont's company invested in General Motors. CVC is the investment of corporate funds directly in external startup companies.

CVC firms believe they have a competitive advantage due to their strong balance sheet, ability to be patient investors, and superior knowledge of markets and technologies. However, managing a successful CVC unit is a difficult task that involves many hurdles.

Here are some key characteristics of CVC:

In the sports industry, CVC is different between leagues, teams, and companies. For example, the NBA has its own CVC arm, which has invested in companies like Sorare and Sportradar. The NFL was the first league to create a venture arm, and the Minnesota Twins (MLB) and Indiana University (NCAA) also have venture arms.

As a savvy investor, you're likely on the lookout for emerging industries that are poised for growth. Three industries that have caught the attention of VCs in the esports space are gaming hardware, esports infrastructure, and virtual goods.

Gaming hardware has seen significant investment, with companies like Razer and HyperX leading the charge.

Esports infrastructure, including venues and streaming platforms, has also attracted VC attention. According to a report, the global esports infrastructure market is expected to reach $1.4 billion by 2025.

Virtual goods, including in-game items and cosmetics, have become a lucrative market within the gaming industry. In 2020, the global virtual goods market size was valued at $15.5 billion.

The eSports industry has seen a significant increase in value, jumping from $493M in 2016 to $903M in 2018, and continuing to rise since then.

Investors have taken notice, with venture capitalists leading the way in investments. The eSports market has become attractive to investors, with many companies raising significant funds in recent years.

Some notable investments include Vindex raising $60M, Mainline raising $6.8M, and 100 Thieves raising $35M. These investments will help push the eSports industry into another successful era.

Investors are focusing on various aspects of the eSports industry, with five main investment opportunities including investing in existing eSports teams, developing an eSports division out of an existing franchise, or establishing a new team altogether.

Here are some of the notable eSports-related investments:

The esports industry has come a long way since 1983 when Walter Day launched the first professional gamer team. Over 37 years later, thousands of professional esports players, teams, and franchises exist today.

By 2009, over 160 esports competitions were held, and this number skyrocketed to nearly 700 in 2012. The prize money also grew significantly, jumping from $2M in 2009 to $10M in 2012.

The rise of live streaming services like Twitch played a huge role in the industry's growth. Founded in 2011, Twitch broadcasted competitions and events worldwide, turning casual viewers into hardcore fans.

The prize money continued to grow, reaching $10M in 2012. This growth attracted the attention of venture capital firms, who saw the potential for investment in the esports industry.

Here's a brief timeline of the industry's growth:

Today, the esports industry is a multi-million dollar market, with a valuation of $903M in 2018.

The rise of corporate venture capital arms in sports is a bullish signal for the industry, indicating a lot of growth ahead.

This trend is particularly evident in the esports industry, where we can expect to see more investment and innovation.

Going forward, the esports industry will likely see a significant increase in corporate involvement, leading to new opportunities for teams, players, and fans alike.

The growth of corporate venture capital arms in sports is a vote of confidence in the industry's potential for long-term success.

Here's an interesting read: Corporate Venture Capital