July 2019 Esports Investment Overview Report
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ESPORTS JULY 2019 Contents Feed Summary TAKE SHARPER DECISIONS Investment Trends WITH TRACXN Market Details ✓ Analyst team Covering 250+ Sectors Exit Outlook ✓ Proprietary Business Model tagging ✓ 6000+ On-demand Queries answered Investors ✓ Sector Reports, Market Maps News ✓ One-Click Connect with Founders Appendix Join 500+ Investors & Corporates to get the Tracxn Advantage 2 Feed Report - eSports - Jul 2019 Copyright © 2019, Tracxn Technologies Private Limited. All rights reserved. Contents Feed Summary Feed Summary Investment Trends Investment Trend Summary Market Details Exit Outlook Summary Exit Outlook BlueBox Investors Summary of Key Markets News Notable Companies in the Sector Appendix Recent News 3 Feed Report - eSports - Jul 2019 Copyright © 2019, Tracxn Technologies Private Limited. All rights reserved. eSports > Feed Summary eSports Feed Summary Video game tournaments, typically played between professional gamers, and the companies involved in developing, organizing, and propagating them. Overview • Inclusions: All online and offline players who contribute to the eSports ecosystem and enable live 698 279 gameplay and distribution worldwide. Includes Covered on eSports game developers, platforms (tech solutions Funded which help in organizing and running tournaments), Tracxn broadcasters (live and direct to audience), league organizers and player organizations. 21 $4.9B Mega • Exclusions: Horizontal gaming companies whose Funding Companies primary focus is not on eSports. • Excludes funding information of Chinese companies Feed in Numbers Top Companies 7 15 19 Unicorns Soonicorns Minicorns 11 12 79 IPO’d Cos Late Stage Cos Series A+ Cos Epic Games Twitch Valve (1991, Cary, $1.6B) (2011, San Francisco, $35.1M) (1996, Bellevue) 46 1 95 Acquisitions Acquihired DeadPooled Note: Mega Companies includes IPO’d companies, Mega Acquisitions and Unicorn. Data is taken from Tracxn Platform as on July 24, 2019. 4 Feed Report - eSports - Jul 2019 Copyright © 2019, Tracxn Technologies Private Limited. All rights reserved. eSports > Feed Summary > Investment Trend Summary Investment Trend Summary Summary of Funding Activity in eSports Entrepreneurial Activity Global Funding Trend Top Geos of Investment *YTD $ Funding # Rounds *YTD US $3.3B $1.9B 100 91 85 SEA 81 63 $565M 73 Europe $243M 46 $804M $541M $447M India $166M $162M $168M $261M Israel $36.2M 2014 2015 2016 2017 2018 2019* 2014 2015 2016 2017 2018 2019* Y-o-Y # of Companies Founded 23 44 46 61 64 37 $ Funding Recent Investments Most Active Investors $1.2B - PE $46M - Series B Seed CourtsideVC (#4), First Round Capital (#3), Greycroft Partners Epic Games (1991, Cary, $1.6B) Gen.G (2019, Playa Vista, $46M) (#3) Advancit Capital (#3), Samsung NEXT (#3), Bessemer Venture $150M - Series E $37M - Series B Series A/B Partners (#2) Discord (2012, San Francisco, $280M) SoloMid (2009, San Francisco, $62M) Index Ventures (#1), Vulcan Capital (#1), Lightspeed Venture Series C+ $53.6M - Series B $37M - Series A Partners (#1) Cloud9 (2013, Santa Monica, $101M) TSM (2009, Los Angeles, $37M) Incubators Y Combinator (#10), BITKRAFT (#9), 500 Startups (#7) $51.1M - Series B $35.5M - Series A Mobile Premier League (2018, Bangalore, Other Notable Nazara (2000, Mumbai, $102M) FundersClub (#3), CAA Ventures (#3), Tencent (#2) $40.6M) Investors $50M - Series D $30.5M - Series B Silicon Valley Bank (#1), KKR (#1), Western Technology Debt Investors Discord (2012, San Francisco, $280M) PlayVS (2015, Detroit, $46M) Investment (#1) 5 Feed Report - eSports - Jul 2019 Copyright © 2019, Tracxn Technologies Private Limited. All rights reserved. eSports > Feed Summary > Exit Outlook Summary Exit Outlook Summary Summary of exit outlook in eSports Recent IPOs Top Acquisitions Super League Feb 2019 Pinnacle Aug 2006 Feb 2017 Hattrick Sports Group Acq by Fortuna for $89.5M eSports tournament organizer Online sports and eSports betting platfor… IPO MCap: $91.7M IPO MCap: - Sep 2016 Pixonic Acq by Mail.Ru for $30M Versus Systems Jul 2016 Gfinity Competitive gaming platform for gamers eSports league organizer Jan 2016 Ustream Acq by IBM for $130M IPO MCap: - IPO MCap: - Jan 2016 MLG Acq by Activision for $46M Millennial Esports Mar 2012 AfriOre Turtle Entertainment Acq by Modern Times Group Provider of competitive gaming platform Real money based gaming platform Jul 2015 IPO MCap: $2.2M IPO MCap: - for $87.2M eSports Mogul Oct 2011 Bandai Namco Entertainment Aug 2014 Twitch Acq by Amazon for $970M esports media and software company Video game developer and publisher IPO MCap: $6.6M IPO MCap: - Top Investors in Exits Most Active Acquirers Epic Games (1991, Cary, $1.6B) Dot Esports (Oct 2016), eSports (Aug 2016), eSportsNation Tencent 4 Gamurs 3 Garena (2009, Singapore, $563M) (Apr 2016) Discord (2012, San Francisco, $280M) Benchmark 2 Unikrn 2 ChallengeMe (Apr 2018), Leetcoin (Apr 2017) Riot Games (2006, San Francisco, $15M) Discord (2012, San Francisco, $280M) FirstMark 2 Cineplex 2 eSports (Sep 2015, $10M), WorldGaming (Sep 2015) Riot Games (2006, San Francisco, $15M) Band of Angels 1 Ustream (2007, San Francisco, $48.6M) Microsoft 1 Mixer (Aug 2016) Singapore 1 Garena (2009, Singapore, $563M) IBM 1 Ustream (Jan 2016, $130M) Government 6 Feed Report - eSports - Jul 2019 Copyright © 2019, Tracxn Technologies Private Limited. All rights reserved. Marketmap: eSports eSports > Feed Summary > BlueBox FACTSHEET GAME DEVELOPERS Overview MOBA FPS Companies 698 Funded 279 Series A+ 79 Funding $4.9B Last 2 yrs $2.3B Most Active Investors Seed CourtsideVC (4) Series A/B Advancit Capital (3) FOR PROFESSIONALS FOR AMATEURS Series C+ Index Ventures (1) Others FundersClub (3) PLAYER ORGANIZATION* REAL MONEY GAMING* Incubators Y Combinator (10) Exits FREE-TO-PLAY IPOs 11 Super League, eSports Mogul LEAGUE ORGANIZERS TOURNAMENTS Acquisitions 46 Twitch, Ustream Top Acquirers Gamurs, Unikrn Feed in Numbers ANALYTICS & TOOLS BETTING Unicorns 7 Soonicorns 15 Minicorns 19 Editor Picks 84 Acquihired 1 Deadpooled 95 Top Companies * * COACHING ESPORTS FANTASY Epic Games (1991, Cary, $1.6B) Twitch (2011, San Francisco, $35.1M) Valve (1996, Bellevue) MEDIA Top Cities Cary 1 Cos $1.6B BROADCASTERS Bay Area 50 Cos $800M Funding data excludes Debt, Grants & Post-IPO rounds. Excludes all details for Chinese companies. * Upcoming Business Model 7 Feed Report - eSports - Jul 2019 Copyright © 2019, Tracxn Technologies Private Limited. All rights reserved. eSports > Feed Summary > Summary of Key Markets Summary of Key Markets Key Sub Sectors in eSports Sector # Cos # Total # Cos on Last 2 Years Sub Sectors Top Markets of Investment Activity Tracked Funded Funding Platform $ Invested # Round eSports Platforms > Competitive Gaming > Game Developers 117 $127M 26 54 33 $2.2B Real Money Gaming Video game developers and creators of eSports games Enablers > Analytics & Tools 67 $240M 20 League Organizers Player Organizations Organizations which create and run leagues and 93 33 $1.1B 58 $359M 19 eSports tournaments League Organizers Enablers 93 $124M 17 197 89 $604M Companies which help further the eSports ecosystem Enablers through various tools 33 $61.3M 5 Player Organizations Broadcasters > Team organizations which employ train eSports 58 19 $392M Live Streaming 42 $28.8M 6 gamers to compete Enablers > 12 $18.4M 8 eSports Platforms Coaching Technology solutions which help in running 246 78 $321M eSports Platforms > 41 $60.5M 4 tournaments and involve all stakeholders Competitive Gaming Broadcasters Online and offline players who broadcast live matches 50 27 $239M and practice videos to the audience 8 Feed Report - eSports - Jul 2019 Copyright © 2019, Tracxn Technologies Private Limited. All rights reserved. eSports > Feed Summary > Notable Companies in the Sector Notable Companies in the Sector List of Notable Companies in eSports Public Acquired Unicorns Super League Twitch Epic Games (2014, Santa Monica, $31M)* (2011, San Francisco, $35.1M) (1991, Cary, $1.6B) eSports Mogul Riot Games Garena (2016, Perth) (2006, San Francisco, $15M) (2009, Singapore, $563M) Millennial Esports Ustream ZeniMax (2017, Toronto) (2007, San Francisco, $48.6M) (1999, Washington D.C., $471M) Thermaltake Discord (1999, Taipei) (2012, San Francisco, $280M) Versus Systems Hero Entertainment (2014, Los Angeles) (1993, Owings Mills, $228M) AfriOre Smilegate (2019, Toronto) (2002, Seongnam-si) Bandai Namco Valve Entertainment (1996, Bellevue) (1955, Tokyo) Gfinity (2013, London) The Farm 51 (2005, Gliwice) Note: *(Founded Year, Location, Total Funding) 9 Feed Report - eSports - Jul 2019 Copyright © 2019, Tracxn Technologies Private Limited. All rights reserved. eSports > Feed Summary > Notable Companies by Market Notable Companies by Market (1/4) List of Notable Companies by Market in eSports Game Developers MOBA MOBA FPS Super Evil Megacorp (2012, San Mateo, Valve (1996, Bellevue) Epic Games (1991, Cary, $1.6B) $63.2M) Game developer and publisher Cross platform game engine and game developer Mobile game developer specializing in the core Unicorn. Stage: Unfunded Unicorn. Stage: Funded games Bandai Namco Entertainment (1955, Tokyo) KKR, Iconiq Capital, Kleiner Perkins and 8 Other Soonicorn. Stage: Series B Video game developer and publisher Investors Index Ventures, Korea Investment Partners, Breyer Stage: Public Capital and 7 Other Investors ZeniMax (1999, Washington D.C., $471M) Game development and publishing company Nival (1996, Limassol, $38M) Unicorn. Stage: Series E Video game developer specializing in strategy and Providence Equity Partners MMORPG games Soonicorn.