Investing in eSports

We try our best to be dynamic at SCC – we understand the need to adapt and change tact when necessary. It is a fundamental rule in the small company space that you have to be where the action is and you have to be there early. Back in 2016 we decided that the action would be in the blockchain space and as as result of this foresight, ourselves and our investors did extremely well.

3 years on, in 2019, we’re utterly convinced that the eSports industry is on the cusp of an insane growth spurt. Dota and Fortnite command the biggest prize pools. League of Legends (LoL) commands the biggest audiences. Riot Games, the gaming developer behind LoL is largely responsible for the growth in the eSports industry, bringing spectators and fans en masse.

For those of you who like to crunch the numbers, here are a few stats that might blow your mind;

Revenues from esports and streaming game content will reach $3.5 billion by the year 2021, according to a new report from Juniper Research. That’s up from approximately $1.8 billion in 2016.

A global market research firm, Newzoo says there are 215 million people around the globe that watch esports either casually or obsessively. This number is projected to grow to 307 Million by 2021. For comparison’s sake, Over 46 Million people tuned in to watch League of Legends Worlds 2017. That number is far higher than the viewership of the NBA Finals, Wimbledon Finals, The MLB: World Series and other traditional sporting events.

In 2017, worldwide aggregate prize money amounted to $121 million according to EEDAR, a total that is comparable to some of the biggest sporting leagues in the world. Esports prize money has climbed to new records for seven years in a row now with no end to the upward trend in sight. But how big is it now? The world’s biggest esports tournament (in terms of prizepool), The International 2018 (Dota 2 world championship) had a prizepool of $25,532,177. This figure is more than the prizepools of IPL ($8 Million), The Open($10.25 Million), The 2018 US Open ($20.5 Million for Men/Women), amongst other traditional sporting events.

Blue Star Capital, an investment company SCC has a 5% stake in, has seeded 6 “start up” teams globally. From India to Canada these teams will endeavor to recruit world class talent with the skillset, charisma and marketability to take these teams from their current embryonic state into well funded franchises competing at the highest level.

 

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