Esports are a multi-million industry. Very, very soon they are going to be worth billions. In fact, NewZoo, one of the companies that actually specializes in running comprehensive analyses of the industry estimates that by 2020, video games (played as an official sport) will be worth $1.4 billion.
This is an impressive amount that has made brands such as BMW and Mercedes-Benz invest into the industry – in the form of training facilities. Even sports teams, such as Paris Saint-Germain have decided to leave their mark by tying up a partnership with Chinese powerhouse LGD.
And the money has followed. Now, a fantasy shooter game called Overwatch is building arenas all around the world so that you can attend a “match” just like you would go to a football game. One thing is certain – however bizarre this looks to you, remember that this is a multi-billion industry. Private equity is apparently important and there’s no mistaking this fact that it helps companies build and expand at an outstanding clip. That’s why Mr. Garfield wants to bring more private investors onboard and make the whole thing work.
However, whether this is possible would depend only on the willingness of investors to spend money on esports. Mr. Garfield is quite confident that he can convince the whole lot of them.
However, there’s a rule – don’t try to cheat the crowd. If you are a carmaker, then make very sure that you are selling them cars and not trying to masquerade it as something else – they don’t really take fondly to this kind of cheating.
Now, Popdog, a new esports company started by esports professional Alexander Garfield has managed to raise $9 million in fresh capital and the company is here to teach everyone about sports – even the mainstream brands that are not related to it in any way.
Mr. Garfield’s initiative will work with players from both end of the industry – from those specializing in delivering esports-ready product to those that prefer to be a mainstream brand and just pour cash into the segment.
Popdog will be focusing on offering insightful tips to those mainstream (endemic brands), but it will also boost various experiences that esports fans themselves are very interested in. As a result, Popdog will change how events are live-streamed, which will be an important stepping-stone to its future success, according to Mr. Garfield. There is of course more to come, he estimates, however this remains to be seen. Venture capital is important, of course, as it helps everyone involved to quickly find a way to realize a project without any unnecessary hassle.
In a nutshell, the $9 million funding round was done with the sole purpose to kickstart a start-up that is focused on delivering relevant business insights to anyone interested in breaking into the esports industry (in one form or another) and make sure that they capitalize on it by adding to their own capital without any trouble or effort. It all adds up.