Platform-makers like EnjinCoin and Bountie want its services to complement both hardworking gamers and players who want to train themselves into esports. Naturally, these sites are doing their best in keeping tabs on the market, as well as contribute to it in some shape or form. Based on recent reports from The Esports Observer, they seem to be in a very good place, financially speaking.
The news site has published its Q1 2018 Esports Business Digest which details the most relevant financial movements in the esports circuit over the last three months. Within that short amount of time, the industry has raised more capital in this specific quarter than any other quarter in the past few years. Specifically, the total number has almost reached the US$2 billion mark.
Why is this upsurge happening? A few reasons:
- Asia’s esports market is on a slow-but-steady move, since the Chinese live-streaming market has been growing from US$5.5 billion in revenue since last year. It’s projected to head up to US$16.5 billion in 2022, with Tencent being the biggest player in this field since they are involved in funding live-streaming platforms Huy and Douyu TV.
- A lot of people are making big team-related investments. Highlights include a US$38 million funding round for Vision Esports, which is a special investment vehicle for Vision Venture Partners who also happen to own Twin Galaxies and Echo Fox.
- To add on to that, investors have put in US$2.5 million into esports data platform FanAI (which is used by big teams like Cloud9 and a number of Overwatch League teams) and tournament organizers DreamHack. FanAI’s data has been used by Catalyst Sports, which led to the Dr. Pepper and Team SoloMid sponsorship that happened recently.
- There is a growing boom in esports stadiums and facilities around the world from Las Vegas to Hangzhou.
- Mobile esports is also on the rise with titles like Mobile Legends, Arena of Valor, and Vainglory being top picks in this exclusive space. In fact, Bountie is continuing this initiative with an upcoming exhibition match later this week.
- We should also factor in other major esports events like the Blizzard-exclusive Overwatch League. The league itself is not only expensive to run but also dishes out harsh monetary fines for teams that do not behave themselves. Because of its high production values and operational costs, it’s no surprise that this happens to be one of the key reasons investments are at an all-time high.
This is definitely good news, as there are a lot of people who want to support such endeavours and keep the field growing. How far can it go beyond The International and Overwatch League? Who knows, but one thing is for certain: companies and startups will need to keep the esports and gaming scene growing with its new ideas and innovations.
Article originally published on Bountie, albeit with slight edits to maintain Kakuchopurei’s style & tone. Learn more about Bountie here.