附近上门

Funding for esports startups has not just grown in recent years鈥攊t has exploded.

U.S. venture investment in the fledgling 颅field of organized professional competitive video gaming spiked by a whopping 1,125 percent to $146.49 million across 34 deals in 2017, compared with $11.96 million over six deals in 2013, according to 附近上门 data.

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Between 2016 and 2017, investment amounts spiked 186 percent. However, deal flow was nearly the same, signaling larger average deal sizes.

Meanwhile, market researcher Newzoo estimates the global esports market by 102 percent to reach $655 million in 2017. Another data source pegs that number to be even higher.

A recent found out that the global gaming industry generated $108.4 billion in revenue during 2017, while esports itself accumulated $756 million in revenue. Newzoo estimates that esports will become a $1.5 billion market with 600 million active viewers around the world.

Dallas-based CEO and Founder speculates the amount of funding in esports is even higher than data indicates because 鈥渁 number of companies don鈥檛 report鈥� funding activity.

The past couple of years in particular 鈥渉ave seen a massive influx of investor capital and professional sports teams鈥� investing in the space, he said. Last November, his own company saw a high-profile exit when Dallas Cowboys owner Jerry Jones, along with investor John Goff, in his 15-year-old company for an undisclosed amount.

Lake formed one of the first professional teams in esports and is impressed by the recent surge in interest in a field he鈥檚 been intimately involved in for more than a decade.

鈥淭he entire ecosystem has exploded in the past few years,鈥� he told 附近上门 News. 鈥淚t鈥檚 one of the most compelling cutting-edge places you can be.鈥�

Big Paydays For Digital Might

Most professional video gamers are between the ages of 18 and 23. Some parents who lectured their children on how video games would never help them be successful are finding themselves eating their words. Skilled participants get paid well to play video games, travel around the world, and compete against others.

Players participating in the International Dota 2 Championship in August 2017 were competing for of more than $24 million. It is the largest prize pool in the history of esports. Colleges and universities are even to varsity video game players.

To Lake, it鈥檚 only logical in the new digital era that a digital sport would be gaining popularity.

鈥淲hen people are passionate about a sport, it usually matures into something more serious,鈥� Lake said. 鈥淲hen people first started playing baseball in New York 150 years ago, people thought it was pretty ridiculous when people started getting paid for it. Now, we鈥檙e the baseball players for this culture. This generation has been gamified since birth.鈥�

Like traditional sports, there are now agents, lawyers, marketing firms, and managers built into the esports space.

鈥淔or advertisers who want to speak to this generation and generations after, this is a very viable way to market to them,鈥� Lake said.

Buying Into The Trend

, managing partner of Dallas-based, has invested in seven esports companies in recent years. He believes in the field so much his firm has essentially turned esports into its second thesis. Two-thirds of its investments are in the B2B enterprise software industry, while about one-third are in the esports space.

One of Deep Space鈥檚 portfolio companies, Dallas-based, made headlines last year when Neil Leibman, the co-owner of MLB franchise Texas Rangers, and co-investor Chris Chaney in the startup for an undisclosed amount.

While it鈥檚 likely that the majority of the population has not even heard of OpTicGaming, it鈥檚 notable that the company currently has 3.34 million followers on Twitter. It鈥檚 not that far behind the NFL鈥檚 Dallas Cowboys with its 3.71 million followers.

Overall, Hays believes one of the factors behind its success is that players and viewers 鈥渁re highly engaged.鈥�

鈥淭here鈥檚 a lot of money to be spent,鈥� he told 附近上门 News. 鈥淚t鈥檚 a huge, global market that鈥檚 growing super fast.鈥�

Hays sees opportunity in improving analytics on how valuable viewers and engagement is within the space. One of Deep Space鈥檚 portfolio companies, Santa Monica, Calif.-based , is focused on just that.

鈥淎n esports competition gets millions of viewers on a Sunday afternoon but sponsors don鈥檛 pay as much for the same number of eyeballs on a Monday night football game or other NFL broadcast,鈥� Hays said.

Another appeal to esports, Hays believes, is that it鈥檚 a short-form content platform that is particularly appealing to today鈥檚 generation. And thanks to companies like, a social video platform for gamers, there鈥檚 a giant community being built around esports.

鈥淲ith so many communities being formed and no barriers to entry, there鈥檚 a huge media opportunity there. It鈥檚 a sport that鈥檚 accessible on any device, meaning you can watch and play it on a computer, phone, or any interactive device,鈥� he said. 鈥淎nd viewers can interact with players. That鈥檚 far more valuable than just airing some commercial that nobody watches.鈥�

Betting On Digital Sports

Something that could open up a whole other can of worms for esports is if certain states, such as Texas, legalize sports gambling. One company poised to benefit from that happening is, a Seattle-based startup that aims to provide a safe and legal place to gather, game, and bet on esports. The company has developed the tools and algorithms needed to analyze all the matches and create what Sood describes as 鈥渢he most comprehensive sports book for esports on earth.鈥�

Esports pioneer Sood founded Unikrn in 2014 and has raised a total of $10 million in venture capital since inception. It also raised $31.4 million in an ICO (Initial Coin Offering) in October 2017 from investors including Dallas Mavericks owner and.

Sood is most known for founding, the world鈥檚 first PC gaming manufacturer, which was to for an undisclosed amount in 2006. He also started , where he worked until 2014.

鈥淚鈥檓 a long-time gamer, and have been watching this space for a while,鈥� said Sood.

He鈥檚 not surprised that venture interest is up.

鈥淓ven though some people are still trying to figure out how to make money in the space, they are paying attention because viewership is up and the fan base continues to grow. It鈥檚 safe to say that esports is the fastest-growing sport in the world right now and it鈥檚 only going to continue to grow,鈥� Sood told 附近上门 News. 鈥淢ore people watch Twitch today than some TV channels.鈥�

Sood agrees that esports is a more intimate sport with high player engagement.

鈥淧rofessional players have relationships with fans at a very high level,鈥� he said. 鈥淚t鈥檚 definitely different that way in that fans are engaged with players in a way that you don鈥檛 see in any other sports.鈥�

The audience is young and tech savvy, making it appealing to advertisers.

鈥淎s big brands want to approach millennials and communicate with them, there鈥檚 probably no better way to do it than esports,鈥� Sood said. 鈥淲e鈥檙e dealing with a very current, very relevant customer base.鈥�

With such a huge jump in funding in a few years鈥� time and major professional sports owners acquiring esports companies left and right, it鈥檚 probably safe to say that this is an industry that will only continue to grow.

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