How To Invest In Esports in 2020
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Esports is a growing industry with a lot of potential for investment. Here’s a guide on how to invest in esports in 2020.
What is esports?
Esports is a form of sport competition using video games. Esports often takes the form of organized, multiplayer video game competitions, particularly between professional players, individually or as teams.
A brief history of esports
The term “esports” is short for “electronic sports,” and refers to the organized competition of video gaming. While esports have been around in some form since the early days of arcade gaming and LAN parties, the popularity of professional esports has exploded in recent years.
Esports tournaments are now broadcast to millions of viewers around the world, and the top players in the world can earn millions of dollars in prize money. The global esports economy is expected to generate $1.1 billion in revenue in 2019, and it is only expected to grow in the coming years.
Investors are taking notice of the popularity of esports, and there are now a number of ways to invest in the industry. Here’s a brief history of esports and how you can invest in it today.
While organized video gaming competitions have been around since the 1970s, the modern era of esports began with the launch of the game Starcraft in 1998. Starcraft was one of the first games designed specifically for competitive play, and it quickly became popular in South Korea. In 2000, South Korean television broadcaster Ongamenet began broadcasting Starcraft matches to millions of viewers.
The popularity of Starcraft led to the development of other competitive games such as Counter-Strike and League of Legends. These games were popularized by online streaming platforms such as Twitch, which allowed anyone to watch or broadcast their gameplay online. The rise of Twitch helped propel esports into the mainstream consciousness, and today there are dozens of professional leagues for a variety of different games.
The rise of esports
While traditional sports still maintain a dominant position in the world of competitive gaming, esports is quickly gaining ground. In fact, the global esports market is expected to reach $1.81 billion by 2022, up from $696 million in 2017, according to research firm Newzoo. And it’s not just casual observers who are taking notice — a growing number of investors are looking to get in on the action as well.
One of the things that makes esports so attractive to investors is the massive and passionate global audience that it commands. According to Newzoo, there are now nearly 500 million esports enthusiasts around the world, and that number is expected to grow to almost 600 million by 2021. What’s more, these fans are incredibly engaged — Newzoo reports that they spend an average of 3.5 hours watching esports each week.
This high level of engagement has helped drive impressive growth in both revenue and prize money for the industry. For example, total prize money for esports competitions topped $100 million for the first time ever in 2017, and it is expected to surpass $200 million in 2019, according to Esports Charts. At the same time, revenues from sponsorships, advertising, media rights, and other sources are expected to reach $1.4 billion by 2022, up from $696 million in 2017.
With so much growth potential, it’s no wonder that investors are clamoring for a piece of the action. If you’re thinking about investing in esports yourself, here’s what you need to know.
How to invest in esports
The esports industry has seen tremendous growth in recent years and is expected to continue to grow at a rapid pace. Investor interest in esports has also been on the rise. So, how can you get involved and start investing in esports?
The risks of investing in esports
Before we dive into how to invest in esports, it’s important to understand the risks associated with this burgeoning industry.
Esports is a relatively new industry, and as such, it is still susceptible to a number of growing pains. First and foremost amongst these is the question of regulation.
The esports industry is currently unregulated, which means that there are no clear guidelines or rules governing how tournaments and events are run, or how prize money is distributed. This lack of regulation can lead to a number of problems, including:
-Tournaments being cancelled or postponed at short notice
-Changes to the format or rules of tournaments at short notice
-Prize money not being paid out
-Investors not getting clear information on how their money is being used.
The potential rewards of investing in esports
The potential rewards of investing in esports are considerable. With the industry growing at an unprecedented rate, there is vast potential for both short- and long-term returns on investment.
For example, in 2019 the global esports economy was worth $865 million, and it is estimated to grow to $1.79 billion by 2022. This rapid growth is being driven by a number of factors, including an increase in the number of people playing and watching esports, the proliferation of esports leagues and tournaments, and continued investment from sponsors and advertisers.
As the industry continues to grow, there will be increasing opportunities for investors to get involved in esports. For those considering making an investment, it is important to do your research and understand the risks involved. But with careful planning and due diligence, the rewards of investing in esports can be significant.
How to get started investing in esports
If you’re interested in investing in esports, there are a few things you should know before getting started.
Esports are a relatively new industry, and as such, the landscape is constantly changing. This can make investing in esports a bit of a risk, but it also presents some unique opportunities for those who are willing to take on that risk.
Here are a few things you should keep in mind if you’re thinking about investing in esports:
1. Do your research.
Before you invest any money in esports, it’s important that you do your research and understand the industry. There are a lot of moving parts to the esports industry, and it can be difficult to keep up with all the changes. The best way to stay informed is to read industry news sources and follow key figures on social media.
2. Consider your investment goals.
As with any investment, it’s important to have a clear understanding of your goals before you get started. Are you looking to make a quick profit? Or are you hoping to invest in something that will grow over time? There are many different ways to make money from esports, so it’s important to choose an investment strategy that aligns with your goals.
3. Be aware of the risks.
Investing in any new industry comes with risks, and esports is no different. The industry is still young and constantly changing, which makes it difficult to predict which investments will be successful in the long run. It’s important to remember that not every investment will pan out, so don’t put all your eggs in one basket. Diversify your portfolio and only invest what you can afford to lose.
The future of esports
Esports is a rapidly growing industry with immense potential. 2020 is poised to be a big year for the industry, with several new investment opportunities emerging. Here’s a look at some of the best ways to invest in esports in 2020.
The continued growth of esports
It’s been a big year for esports. The industry has seen explosive growth in 2019, with the total global esports economy reaching $696 million. This figure is expected to grow to $1.79 billion by 2022, according to market research firm Newzoo.
And it’s not just the size of the prize pools that are getting bigger. The number of people watching esports is also on the rise. In 2018, there were 380 million global esports viewers, and this is predicted to grow to 646 million by 2023.
With such rapid growth, it’s no wonder that brands and investors are taking notice of the esports industry. Brands are projected to spend $694 million on sponsorship deals in 2019, up from $655 million in 2018. And investors have plowed $4.5 billion into esports companies since 2015.
So what does the future hold for esports? Here are three predictions for the industry in 2020 and beyond.
1. More traditional sports teams will get involved in esports
2. Celebrities will continue to invest in esports teams and organizations
3. Esports will become more mainstream
The challenges facing esports
The esports industry is still in its early stages, and there are a number of challenges that it needs to overcome in order to reach its full potential.
One of the biggest challenges is the lack of regulation and standardization. This makes it difficult for investors to know where to invest and how to measure the success of their investments.
There is also a lack of media coverage and understanding of esports, which makes it difficult to attract sponsors and investors.
Finally, the industry is currently dominated by a small number of companies, which makes it difficult for new entrants to compete.