Growth of sports
The esports industry has been growing over the years at a fast pace, both in viewership and revenue. Viewership is the main reason for the increase in revenue. As sports games have the potential to reach a larger audience, brands are supporting and investing in esports marketing, both directly and indirectly. This is significantly increasing revenue, which had previously decreased in COVID but has now returned to its track since 2022.
Esports games have experienced growth in many other aspects too, which are related, and by seeing this growth in esports games, people can understand how to leverage it.
The firms that produced the gaming gear, such as Intel, Microsoft, and ATI, were among the first to enter the esports market. Computer hardware firms merely paid to sponsor significant events and run advertisements during them in the early days of esports investing.
WHO INVESTS IN ESPORTS?
- Corporate Investors: These are the major investors initially interested in advertising as esports sponsors. While huge brands in a number of different areas have entered the fray, hardware, and game companies like Intel and Microsoft have been active from the start.
- Venture Capital: These investors, along with angel investors, take a strong interest in esports. These include Accel Partners, the Kraft Group, etc. These investors put their money into startups that provide services to esports.
- Celebrity Investors: The investment of Ashton Kutcher and Mark Cuban in esports was eye-opening for these investors. They are going to be partners with venture capital investors.
- Traditional Sports Club—The Professional Sports League has not accepted Esports as a competition. They are actually planning to include esports in their existing framework.
Top 10 Investors in Sports
- BITKRAFT (2015, US): BITKRAFT finances seed and series A-stage businesses. The portfolio firms are spread out geographically, with a mild emphasis on the US market. The fund invests in a wide range of esports-related businesses, including broadcasters, in-game advertisers, audience monetization, and betting, as opposed to focusing on a single esports sub-sector.
- Play Ventures (2018, Singapore): Play Ventures finances startups in the seed, series A, and series B stages. The fund primarily focuses on funding game creators, but it also has other gaming-related investments in its portfolio, including game creation tools, programmatic advertising, and narrative software.
- Makers Fund (2017, US): Makers Fund finances startups in seed, series A, and B. They assist creative, aspirational founders. This fund supports ambitious business owners as they traverse the challenges of early-stage business development and helps them lay their first foundation.
- 1UP Ventures: This firm provides seed and Series A funding to startups. They are creating a diverse and welcoming community of the world’s most skilled, seasoned, and inventive independent game creators at 1Up Ventures. They think that by cooperating, they may all achieve greater success.
- Black Sheep Ventures: These finance startups in preseed, seed, and series A. In industries such as eSports, gaming, blockchain technology, immersive experiences, and others where disruptive technology like blockchain and visionary creative thinking can permanently shift the status quo, Black Sheep Ventures strives to find visionary entrepreneurs who are unafraid to create new facts for entertainment content and human interactions.
- CAA Ventures: This firm invests in startups in the seed, Series A, and Series B rounds.CAA Ventures benefits business owners in ways other than finance. The majority of these businesses operate in the consumer internet space, with a focus on mobile platforms, social networking, crowdsourcing, online video, publishing, gaming, and eCommerce.
- Dune Ventures: These finance startups in pre-seed, seed, and series A and B. Dune Ventures is a brand-new early-stage venture company that invests in interactive technology, esports, and gaming. We make investments all around the world and support entrepreneurs that are creating the infrastructure, social platforms, and content studios that will shape the future of entertainment.
- Alpha Wave Global: Lead by Anirudh Sign this fund invests in esports and esports fantasy organizations.
- InfoEdge: InfoEdge group has always been on the frontline of investing in various technology and innovation start-ups. They have also added a few gaming, esports, and esports fantasy companies to their portfolio.
- Polygon: The blockchain company has also added its stake in esports and esports fantasy organizations.
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What do sports investors look for in sports investments?
- Growth and Performance
- Strong Team
- Healthy Financials and Economics
The scale and activity of the esports investing ecosystem are expanding quickly. All investor categories have seen a rise in investment activity, and we anticipate seeing more esports-focused investors in the future. Organizations in the esports fantasy domain like FanClash have also been drawing major traction from around the globe.