How to Invest in Esports Stock

It’s no secret that esports is a growing industry with immense potential. Here’s a quick guide on how to invest in esports stock.

Why invest in Esports

The global Esports market is growing

The global Esports market is growing rapidly, with successful professional leagues and tournaments attracting increasing numbers of viewers and competitors. This growth is being driven by a number of factors, including the increasing popularity of online gaming, the rise of mobile gaming, and the growth of live streaming services such as Twitch.

While the Esports market is still relatively small compared to other professional sports, it offers a number of advantages for investors. These include a younger and more engaged audience, a growing number of opportunities for investment, and a range of potential investment strategies.

If you’re considering investing in Esports, there are a few things you should keep in mind. First, it’s important to understand the different types of games that are popular in the Esports world. Second, you’ll need to identify which teams and players are most likely to succeed in the competitive landscape. And finally, you’ll need to consider which investment strategy is right for you.

Esports is a viable investment

Esports is a viable investment for a number of reasons. First, the industry is expected to grow rapidly in the coming years. Second, esports has a global reach, which means that investors can tap into new markets. Third, esports is a relatively young industry, which means that there are plenty of opportunities for early investors to get in on the ground floor. Finally, esports is an exciting industry, which means that investors can expect to see high returns on their investment.

How to invest in Esports

Esports is a rapidly growing industry with multiple avenues for investment. This guide will explore the different types of Esports investments and provide advice on how to get started.

Publicly traded companies

With the recent surge in popularity of Esports, many investors are wondering how they can get in on the action. Unfortunately, there is no centralized Esports stock exchange where you can buy and trade shares of your favorite teams or players. However, there are a few publicly traded companies that have a significant presence in the Esports industry, and investing in these companies is one way to capitalize on the growing popularity of Esports.

The two most well-known publicly traded companies with a significant presence in Esports are Activision Blizzard (ATVI) and Electronic Arts (EA). Activision Blizzard is the parent company of some of the most popular Esports franchises, including Call of Duty, Overwatch, and Hearthstone. EA is the parent company of popular franchises such as Battlefield, FIFA, and Madden. Both companies have been early movers in the world of competitive gaming, and both have made significant investments in building out their Esports capabilities.

In addition to Activision Blizzard and EA, there are a few other publicly traded companies with a noteworthy presence in Esports. These includeTake-Two Interactive (TTWO), which publishes the NBA 2K franchise; Tencent Holdings (TCEHY), which owns Riot Games, developer of League of Legends; and Comcast (CMCSA), which owns a majority stake in esports organization SK Gaming.

While there are not any dedicated Esports exchanges yet, there are a few ways for investors to get involved in the industry through publicly traded companies. By doing your research and investing in companies with a strong presence in Esports, you can give yourself exposure to this rapidly growing industry.

Esports investment funds

Investment funds are a type of financial institution that pools money from investors to invest in a variety of assets, including stocks, bonds, and other securities. Esports investment funds are specialized investment vehicles that invest exclusively in esports-related companies and projects.

There are a handful of esports investment funds currently in operation, with more likely to launch in the coming years. These investment funds offer investors the opportunity to gain exposure to the growing esports industry without having to pick individual stocks or make other direct investments.

Esports investment funds typically invest in a mix of public and private companies involved in the esports industry. Some of the most popular investments for these types of funds include:

-Esports media rights companies: These are the companies that acquire and distribute the broadcasting rights for esports events. Examples include Riot Games (owner of League of Legends) and Twitch (an online streaming platform popular with gamers).

-Esports teams: Professional esports teams are similar to traditional sports teams, with players competing in tournaments and leagues for prize money. These teams can be sponsored by brands and generate revenue through ticket sales, merchandise sales, and broadcast rights deals. Notable examples include Cloud9 (an American team that competes in multiple games) and SK Telecom T1 (a South Korean team that competes in League of Legends).

-Esports event organizers: These are the companies that operate esports tournaments and leagues. Major examples include ESL (the world’s largest esports company) and Blizzard Entertainment (the developer of popular games such as Overwatch and Hearthstone).

-Esports betting websites: A growing number of websites are offering betting on esports matches, similar to traditional sports betting. Notable examples include Unikrn (a US-based company) and Pinnacle (a UK-based company).

Game publishers

In general, the game publishers are the safest bet when it comes to investing in esports. These are the companies that make and own the popular video games that people compete in as esports athletes. Some of the most well-known game publishers with successful esports programs include Activision Blizzard (ATVI), Electronic Arts (EA), and take-Two Interactive (TTWO). These stocks are all publicly traded on major U.S. exchanges and have a long history of profitability and shareholder value creation.

While there are many game publishers to choose from, these three have demonstrated a commitment to esports and have the financial resources to continue to invest in this growing industry. They also have proven track records of success in developing and monetizing popular video games. As such, they are well-positioned to capitalize on the growth of esports.

What to look for when investing in Esports

When it comes to investing in esports, there are a few things you should look for. For instance, you want to invest in a company that is involved in multiple aspects of the esports industry. This could include game publishers, tournament operators, and even streaming platforms. You also want to consider the financial stability of the company before investing.

Management

While there are a number of important factors to consider when evaluating an esports organization as a potential investment, management is perhaps the most important. A strong management team with a proven track record in traditional sports, media, and/ or entertainment will be best positioned to navigate the unique challenges and opportunities that come with operating in the esports industry. Furthermore, experienced management will be better equipped to identify and capitalize on new revenue streams as they emerge. As such, investors should closely examine an organization’s management team before making any decisions about investing.

In addition to traditional sports, media, and entertainment experience, it is also important for esports organizations to have management team members with experience in the esports industry specifically. While many of the same principles that apply to traditional sports also apply to esports, there are also a number of unique aspects to the esports industry that require special expertise. For example, game publishers play a much more central role in the esports ecosystem than traditional sports leagues do in the traditional sports ecosystem. As such, it is important for esports organizations to have management team members with experience dealing with game publishers.

Another important factor to consider when evaluating an esports organization’s management team is diversity. The vast majority of esportswas dominated by men; however, this is slowly starting to change. An organization that has a diverse management team will be better positioned to appeal to the growing number of female gamers and tap into new revenue streams that come with them.

Finally, it is also important for investors to consider an organization’s commitment to corporate governance. Many public companies in traditional sports have been embroiled in scandal due to lax corporate governance standards. While there have not been any major scandals in the Esports industry thus far, it is still important for investors to consider an organization’s commitment to corporate governance before investing.

Growth potential

The potential for growth in the esports industry is undeniable. According to a report from Newzoo, the global esports economy is expected to reach $696 million in 2017, a year-over-year increase of 41.3%. By 2020, that number is expected to balloon to $1.5 billion.

With such impressive growth projections, it’s no wonder that investors are looking for ways to get in on the action. But before you plunk down your hard-earned cash, there are a few things you need to know about investing in esports.

Here are three factors to consider when weighing an investment in esports:

1. The audience: The first thing you need to understand about investing in esports is the audience. Unlike traditional sports, which tend to be popular with adults over the age of 35, esports draws its largest audience from the coveted 18-34 demographic. In fact, according to a report from Goldman Sachs, 60% of esport fans are under the age of 21.

This is an important distinction because it indicates that the current crop of esport fans are more likely to be early adopters of new technology and trends. That means they’re also more likely than traditional sports fans to be open to new brands and products — which present a major opportunity for sponsors and advertisers looking to reach this valuable demographic.

2. The platforms: Esports tournaments are typically streamed online on platforms like Twitch and YouTube Gaming. In addition, some networks have started broadcasts esports events on television. This presents a major opportunity for media companies looking to invest in esports content or platforms as traditional broadcasters look for ways to reach younger audiences who are cutting the cord.

3. The games: There are dozens of different games played at the professional level in esports, but not all games are created equal when it comes to investment potential. Some games, like League of Legends and Counter Strike: Global Offensive, have large established fan bases and well-organized professional leagues that offer an attractive proposition for sponsors and advertisers. Other games, like Overwatch and Hearthstone, are newer on the scene but show great promise thanks to their popularity with younger audiences and their association with established gaming brands like Blizzard Entertainment.

Financials

It’s important to look at a company’s financials before investing in them. You want to make sure that they are in good financial health and that they have a solid business plan. You can find this information in their annual report or on their website.

Esports is a growing industry, but it is still relatively new. That means that there are not a lot of publicly-traded companies that are pure-play esports companies. That said, there are a few companies that have significant esports businesses and are worth considering as potential investments. These include:

-Activision Blizzard (ATVI)
-Electronic Arts (EA)
-Take-Two Interactive (TTWO)
-Tencent (TCEHY)

Each of these companies has different financials and business models, so it’s important to do your own research before investing. But these are all large, well-established companies with strong balance sheets and proven track records. They are also leaders in the esports industry, with significant investments in tournaments, teams, and content.

Risks of investing in Esports

While there are many potential rewards, there are also several risks associated with investing in esports. One of the biggest risks is that the industry is still very young and is thus subject to a great deal of volatility. The games themselves can also be quite fickle, with popularity ebbing and flowing on a regular basis. As such, investing in esports can be a risky proposition.

The Esports market is still young

The Esports market is still young and, as such, is ripe with opportunity but also potential risks. Anyone looking to invest in Esports should be aware of these risks before putting any money down.

One of the biggest risks facing investors in Esports is the lack of regulation. Because the market is still relatively new, there are no real governing bodies or set rules and regulations in place. This could lead to problems down the line if things start to go sour.

Another big risk is that Esports is still largely reliant on sponsorship and advertising revenue. This means that if sponsorships dry up or advertisers pull back, it could have a major impact on the industry as a whole. This risk is compounded by the fact that most Esports organizations are not yet profitable, meaning they could be in trouble if their revenue sources start to disappear.

Investors should also be aware of the potential for fraud and manipulation in the Esports market. As it stands now, there are no real safeguards in place to protect investors from losing their money to scams or bad deals. This is something that will likely improve over time as the market matures, but it is something to be aware of nonetheless.

Lastly, it’s important to remember that investments in Esports are still relatively new and largely unproven. While there have been some success stories, there are no guarantees when it comes to investing in this industry. As with any investment, there is always a chance that you could lose money, so be sure to do your research and only invest what you can afford to lose.

Esports is a niche market

Like any other entertainment industry, the esports market is subject to the laws of supply and demand. When there are more tournaments and teams, prices for sponsorships and advertising go up. When there are fewer tournaments and teams, prices go down.

This is why esports is a niche market. It’s not as big as traditional sports like football or basketball, so there aren’t as many companies vying for sponsorships. That means that companies that do sponsor esports teams can get a better return on their investment (ROI).

But it also means that investing in esports is riskier than investing in traditional sports. There’s less data to go on, and the industry is still relatively new. So while you could make a lot of money if esports takes off, you could also lose your shirt if it doesn’t.

How to diversify your Esports investments

Don’t put all your eggs in one basket

With the massive growth of the Esports industry, more and more people are looking to get involved and invest in Esports. However, with any investment, there is always risk involved.

One of the best ways to mitigate risk is to diversify your investments. Don’t put all your eggs in one basket, so to speak. Spread your investments across multiple Esports-related companies and industries.

Some areas you may want to consider investing in are:
-Esports teams
-Esports organizations
-Esports venues
-Esports event organizers
-Esports broadcasters and media companies
-Gaming hardware and software companies

Invest in different types of Esports companies

While there are many ways to invest in esports, one of the best ways to diversify your investments is to invest in different types of esports companies.

There are three main types of esports companies: game publishers, tournament organizers, and teams.

Each type of company offers different benefits and risks, so it’s important to understand the difference before you invest.

Game publishers are the companies that make the video games that are played in esports tournaments. Some of the biggest game publishers in the world are also some of the biggest names in esports, such as Riot Games (publisher of League of Legends) and Valve (publisher of Dota 2).

Investing in game publishers is a good way to get exposure to the growth of the esports industry while also diversifying your investment portfolio. Game publishers tend to be large, well-established companies with diverse businesses, so they offer some stability even as the esports industry grows and changes.

However, game publishers don’t always directly benefit from increases in esports viewership or prize money. For example, Riot Games doesn’t directly profit from tournament prize pools; instead, it earns revenue from league fees and game sales. So, while investing in game publishers is a good way to get exposure to the industry, it’s important to understand how each company makes money from esports before you invest.

Tournament organizers are the companies that run esports tournaments. Unlike game publishers, tournament organizers usually rely heavily on esports revenues to support their business. For example, Major League Gaming (MLG) is a professional tournament organizer that runs several large annual tournaments for games like Call of Duty and Halo.

Because they rely more heavily on Esports for their revenue, tournament organizers tend to be more volatile than game publishers. So investing in tournament organizers may offer higher potential rewards but also comes with more risk. Tournament organizers also tend to be smaller and less diversified than game publishers, so they may be less stable investments overall. However, investors who are willing to take on more risk may find that investing in tournament organizers offers higher potential rewards.

Teams are one of the most popular ways for fans to support their favorite players and games. Esports teams compete in tournaments organized by tournament operators like MLG and ESL. Teams often have sponsorships from larger companies which help them cover the costs of salaries and travel expenses for their players.

Team investments offer a number of advantages for investors looking to get involved with Esports. First, teams have much lower start-up costs than other types of Esports businesses like tournament operators or broadcasters. Second, teams generate revenue from multiple sources including player salaries, sponsorships, merchandise sales, and ticket sales from live events

Geographical diversification

Just as with any investment, diversification is important when it comes to investing in esports. By spreading your investments across a number of different companies, games, and geographical regions, you can mitigate some of the risks associated with investing in this relatively new industry.

One way to diversify your esports investments is to choose companies that are headquartered in a number of different countries. This can help to mitigate the risk posed by political and economic instability in any one country, as well as reducing your reliance on a single currency.

Similarly, it’s also worth considering investing in companies that are involved in a number of different games. While there are some titles that are more popular than others at the moment (such as League of Legends and Counter-Strike: Global Offensive), the popularity of games can change over time. By investing in companies that are active across a number of different titles, you’ll be less reliant on any one game remaining popular.