The esports industry is making waves and gaining pay. A lot of that is due to investments in the sector by eSports VC firms. With the consistent growth of esports, more investments and VC firms are getting attracted.
To make things clear, a Venture Capital is a type of financing provided by an investment fund or several investors for a startup or a small business, with high growth prospects. eSports VC’s, then, are investment firms exclusively dedicated to investing the competitive gaming startup and expansion ecosystem.
Esports is a budding industry that has shown signs of massive growth. So, any startup that is well put together has a good chance of attracting VC firms. This is why esports companies keep securing funds from big-shot investors.
Esports Venture Capital Firms
We have compiled a list of VCs that have invested in more than one esports venture. This list is not a complete round-up as there are lots of VC firms that are funding esports. We’re only going to highlight some of them.
Sapphire used to be the investment arm of SAP, the global software company. This year, it has invested in excess of $115 in different industries including esports. Sapphire specializes in investing in tech startups with innovations that can disrupt industries. This, perhaps, is its reason for throwing funds into esports.
Doug Higgins, the co-founder and managing director of Sapphire Ventures said that one cannot ignore the statistics esports is creating. That’s in acknowledgment of the massive growth of the industry. He further said that teenagers do not look to become the next Tom Brady, they want to become the next Ninja.
BITKRAFT Esports Ventures
You can call this company an esports venture capital because it only invests in esports. The BITKRAFT claims to seek out ambitious and streetsmart founders with an upright character that is willing to get things done.
Its co-founder Jens Hilger said the firm aims to reach out to different aspects of the industry. This should explain why it has so many different investments in esports.
Some of its 2019 funding went to the following startups:
- Tonk Tonk Games – This startup aims to personalize user experience by putting a cartoon version of your face on the fighting characters in the game. It got a sum of $2m from BITKRAFT.
- According to Esports Insider, a Japanese esports event organizer received $1.9m. The startup will use the funds to scale up and support the commercialization of League of Legends Japan League.
- The Action Network is a startup that seeks to take advantage of legal esports betting. This area of esports will certainly grow on the back of the industry itself.
This company has been dubbed the largest video games company by revenue. Based in China and supported with government funding, it has a huge stake in esports tournaments in China.
Tencent Games is the developer of esports titles Honor of Kings and Arena of Valor. It has investments in Riot Games, the maker of League of Legends (LoL) and Supercell, the owners of Clash Royale.
That’s not all, Epic Games, Activision Blizzard, and Ubisoft are some of the other esports games developers it has shares in.
It’s no surprise this esports venture capital firm has a huge revenue. It also has investments in Bilibili, Huya, and Douyu which are some of the biggest live-streaming platforms in China. In short, Tencent Holdings is huge!
London Venture Partners (LVP)
Here is another strictly esports venture capital firm. It has a deep understanding of the ecosystem so it knows exactly what to look out for.
According to the firm, on their website, “We invest in people. That means founders with the potential to build the best in the world; teams with terrific, creative games development skills, or fantastic ideas for revolutionary games technology or services… and a vision that sets them apart.”
LVP has successfully transformed ideas into multi-million-dollar companies. It seeks to assist startups strategically and operationally.
Some of its esports investments are as follows:
- Dojo Madness
- Future Play Games
- Radiant Entertainment, etc.
The Kraft Group
This is a huge American investment firm that has supported a lot of companies in different industries. With the growth in esports, this firm has consequently decided to benefit from the boom. Skillz and Overwatch League’s Boston Uprising aree some of the esports ventures it has invested funds.
Its investment in the New England Patriots saw the team achieve one of the most dominating eras in NFL’s history. Hopefully, its involvement in eSports will bring about similar growth.
March Capital Partners (MCP)
This venture capital firm specializes in funding technology startups. According to the firm, it seeks out entrepreneurs with big dreams and are bold enough to chase them. The firm looks to invest early in startups that have shown the potential for growth and help it emerge and achieve its potential.
MCP has splashed the cash for esports ventures such as Dojo Madness, an esports player performance platform. Some others are Wavedash Games and Genvid.
There you have it, some of the venture capital firms that have invested in esports. These firms gave esports startups the opportunity to grow into what they are today.
As esports, as a whole, continues its year on year growth and attract more fans, VCs will continue to throw money into the industry. So, those of you nursing a dream to become a pro player now is the time to get in with Gamercraft!3