How To Invest Into Esports?

Esports has seen a surge in popularity in recent years. With so many people wanting to get involved, how can you invest into esports?

Introduction

The esports industry is still in its early stages but is growing rapidly. There are a variety of ways to invest into esports, including venture capital, angel investing, private equity, and sponsorship.

Venture capital is one of the most common ways to invest into esports. This is when a venture capitalist invests money into an esports company in exchange for equity. The value of the company goes up, and the investor receives a return on their investment when the company is sold or goes public.

Angel investing is another way to invest into esports. An angel investor is typically a wealthy individual who invests their own money into a startup company. They usually don’t expect to see a return on their investment and are more interested in supporting the growth of the industry.

Private equity is another option for investing into esports. A private equity firm raises money from investors and then uses that money to buy shares of an esports company. The firm then sells the company for a profit after a few years.

Sponsorship is another way to invest into esports. This is when a company pays to have their brand associated with an esports team or event. Sponsorships can range from small branding deals to multimillion-dollar contracts

What is Esports?

Esports, also known as electronic sports, is a form of competition that is facilitated by electronic systems, particularly video games. Esports often takes the form of organized, multiplayer video game competitions, particularly between professional players, individually or as teams.

The History of Esports

It is commonly thought that Esports started in South Korea with the launch of the Cyberathlete Professional League (CPL) in 1997. However, there were competitive video game tournaments being held as early as 1972. The earliest known video game competition took place at Stanford University for the game Spacewar. Throughout the 1970s and 1980s, Atari held larger Space Invaders tournaments which drew crowds of over 10,000 people. However, it was not until the 1990s when Esports began to gain more mainstream attention.

The 1990s saw the rise of PC gaming and with it came a new generation of gamers. Highly competitive arcade games such as Street Fighter II and Mortal Kombat became popular among this new demographic. In 1992, Nintendo organised the World Championships for its game Super Mario Kart which was broadcast on television across America. This event is widely considered to be one of the first major esports tournaments. The late 1990s also saw the formation of professional gaming organisations such as Cyberathlete Professional League and World Cyber Games. These organisations helped to legitimise esports and establish formal structures such as rulesets, prize pools, and player salaries.

The 2000s were a pivotal period for esports due to two key developments: the launch of broadband internet connections and streaming services such as Twitch. These innovations allowed gamers from all over the world to play together online and watch each other compete in real-time. The increased accessibility and global reach of esports helped to attract large audiences and investment from major companies such as Coca-Cola, Samsung, and Intel. As a result, esports has grown rapidly in recent years with tournaments being held all over the world for games such as League of Legends, Fortnite, Counter-Strike: Global Offensive, Overwatch, Dota 2, and many more.

The Present of Esports

The present of Esports has looked quite different ever since the outbreak of COVID-19. With traditional sports put on hold for the foreseeable future, and with many people around the world now stuck at home, Esports has seen a surge in popularity. This is evident in both viewership and investment.

According to a report from Goldman Sachs, global Esports revenue is expected to grow from $1.1 billion in 2019 to $3.0 billion by 2022. This represents a compound annual growth rate (CAGR) of 26%. And according to Newzoo, there are now nearly 500 million Esports viewers around the world.

Investment into Esports has also seen a significant increase in recent years. In 2018, global investment into Esports totaled $1.8 billion across 213 deals. This was more than double the $692 million invested in 2017 across 172 deals. And according to Deloitte, 2019 saw a record $4.5 billion invested into Esports, with North America accounting for 56% of that total.

Looking forward, the future of Esports appears to be very bright. The industry is expected to continue growing at a rapid pace and attracting more investors and viewers from around the world.

The Future of Esports

The future of esports is looking very bright. More and more traditional sports organizations are starting to invest in esports, and the industry is only getting bigger and more popular. There are a few things that could happen that would really take esports to the next level:

1. Increased investment from traditional sports organizations
2. More mainstream media coverage
3. More countries recognizing esports as a legitimate sport
4. More universities offering scholarships for esports athletes
5. Increased prize money for tournaments

All of these things are already happening to some extent, but if they all continue to grow at their current rates, then the future of esports is looking very bright indeed.

How to Invest Into Esports

You’re probably wondering how to invest into esports. After all, it seems like everywhere you look, there’s another story about how much money is being poured into the industry, and how it’s only going to continue growing. The truth is, there are a lot of different ways to invest into esports. In this article, we’ll go over a few of the most popular methods.

Where to Invest

With the global eSports market estimated to be worth close to $1 billion in 2019, there are plenty of opportunities for those looking to invest in the industry – but where should you put your money?

There are a number of ways to invest in eSports, from buying shares in companies that own eSports teams or organize tournaments, to investing in the digital currencies used by many gamers.

Here we take a look at some of the best ways to get involved in eSports investing.

Investing in an eSports team
One way to get exposure to the eSports industry is to invest in an eSports team. There are a number of big-name teams out there, including Cloud9, Team Liquid and SK Telecom T1, which are all worth millions of dollars.

If you’re looking to invest in an eSports team, you can do so by buying shares in the company that owns the team. For example, Cloud9 is owned by Jack Etienne’s Universal Entertainment Corporation, while Team Liquid is owned by aXiomatic Gaming LLC.

Alternatively, you can invest in the team itself by buying shares in any investment funds that have invested in the team or by purchasing shares on secondary markets such as Binance’s Equity Token Offering (ETO) platform.

Investing in an eSports tournament organizer
Another way to get involved in eSports investing is to buy shares in a company that organizes tournaments. Companies such as Electronic Sports League (ESL) and Major League Gaming (MLG) host some of the biggest tournaments in the world and generate huge amounts of revenue from sponsorship deals, broadcasting rights and ticket sales.

You can buy shares in these companies on stock exchanges around the world or through private placement offerings.

1 esports company: 100 Thieves

Games

Games are the first thing you should look into when wanting to invest into esports. Different games have different player bases, some games may have a very small player base while others might have millions of people playing. It’s important to do your research on the game or games you want to invest in, so you don’t end up wasting your money.

There are many websites that can give you information about games and their player base size such as SteamSpy and Isthereanydeal. These websites can tell you how many people own a game and how often it is played. This information is important because it will help give you an idea of how big the game is and if it is worth investing in.

Another important factor to look at when choosing a game is the competitive scene. Not all games have a competitive scene and not all competitive scenes are created equal. There are some games with very small competitive scenes while others might have huge tournaments with millions of dollars up for grabs. Games like Dota 2, League of Legends, Counter Strike: Global Offensive and Overwatch all have large competitive scenes with many tournaments being held each year.

These are just some of the things you should look into when wanting to invest into esports through games.

Teams

2. Research Esports Teams to Invest In
Like with any sport, there are professional teams that compete in various tournaments and leagues around the world. These are the organizations that you can invest into as an investor. Doing your research on which teams to invest in is important, as different teams will have different value propositions. For example, some teams may be more stable and consistent performers, while others may be up-and-comers with high potential but more risk. It all depends on what you as an investor are looking for.

Here are a few factors you should research when trying to identify which esports team to invest in:
– The team’s past performance
– The team’s current roster
– The organization and management of the team
– The game(s) the team competes in

Players

With the global esports economy projected to reach $696 million in 2017, there’s never been a better time to invest in the competitive gaming industry. Here’s a look at three key ways you can get involved.

1. Invest in an esports team
Just like traditional sports, owning an esports team can be a very lucrative investment. And while there are a number of established organizations, there’s still plenty of room for new teams to make their mark on the scene.

2. Invest in an esports organization
Esports organizations are similar to traditional sports teams, but they usually don’t field their own competitive teams. Instead, they focus on organizing and running tournaments and leagues. This is a great way to get involved in the esports industry without having to make a large financial investment.

3. Invest in an esports company
There are a number of companies that provide services to the esports industry, from streaming platforms to tournament organizers. These companies are often very well-positioned to capitalize on the growth of the industry and can be great investments for those looking to get involved in esports.

Tournaments

Esports tournaments are organized online and offline events in which professional or semi-professional gamers compete in individual or team-based games. These events are sponsored by companies that want to promote their brand to the gaming community, as well as by the game developers themselves.

The most popular esports tournaments are typically held for first-person shooter (FPS) games, such as Counter-Strike: Global Offensive (CS:GO) and Overwatch, and multiplayer online battle arena (MOBA) games, such asLeague of Legends (LoL) and Dota 2. Other popular genres include real-time strategy (RTS) games, such as Starcraft II, and fighting games, such as Street Fighter V.

While some esports tournaments are organized by the game developers themselves, the majority are now run by third-party organizations. These include Major League Gaming (MLG), Electronic Sports League (ESL), and Turner Broadcasting System’s Eleague.

The prize pools for esports tournaments can vary widely, from a few thousand dollars to multimillion-dollar payouts. The largest tournament to date is The International 2017, which had a prize pool of over $24 million.

Media

According to Goldman Sachs, theEsports industry is expected to grow 24% year-over-year to $2.96 billion in 2022. And while there’s no shortage of big companies getting involved in the space — think Disney’s recent $1 billion acquisition of Twitch — many investors are still wondering how they can get in on the action.

For those looking to invest in Esports, there are a few different options available. Perhaps the most direct way to invest is by buying shares of an Esports company, such as an organization that owns and operates multiple Esports teams or a video game publisher that produces popular Esports titles. Another option is to invest in the companies that are helping to drive the growth of the industry, such as those providing streaming services or developing new technologies for competitive gaming.

Of course, with any investment there are risks to consider. The Esports industry is still relatively young and therefore subject to change. For example, a decline in popularity for a particular game could hurt the earnings of companies involved in that title’s Esports scene. Additionally, because most Esports organizations are privately owned, it can be difficult for investors to get accurate information about their financials and future plans.

Still, for those who are willing to do their homework, investing in Esports can be a lucrative way to cash in on the growth of this rapidly expanding industry.

When to Invest

There is no one answer to when the best time to invest in esports is. However, there are certain factors that can give you a general idea of when the industry is thriving and when companies within the industry are growing.

The first factor to look at is the amount of interest in esports. This can be determined by looking at the number of people searching for “esports” online or the number of people talking about esports on social media. Generally, when there is a lot of interest in esports, it means that more people are watching esports and more companies are willing to invest in the industry.

The second factor to look at is the amount of investment into esports. This can be determined by looking at how much money companies are willing to invest in esports tournaments, teams, or leagues. Generally, when there is a lot of money being invested into esports, it means that the industry is doing well and that companies believe that there is a lot of potential for growth in the future.

The third factor to look at is the amount of prize money being awarded in esports tournaments. This can be determined by looking at how much prize money was awarded in major tournaments over time. Generally, when there is a lot of prize money being awarded, it means that companies are willing to invest more money into esports and that they believe that there is a lot of potential for growth in the future.

How Much to Invest

The global esports economy will reach $696 million in 2017, a 41.3 percent increase from 2016. By 2020, esports is projected to generate $1.5 billion in annual revenue.

These figures explain why so many brands—including Nike, Coca-Cola, and Red Bull—have invested in the space, and why traditional sports teams like the NBA’s Philadelphia 76ers have bought professional esports teams. If you’re thinking about joining them, here are a few factors you need to consider before making your own investment into esports.

How much should you invest?
There’s no simple answer to this question since it depends on numerous factors, including your own budget and goals for the investment. That said, most experts recommend starting with a smaller amount of money—say, $50,000 or less—and seeing how things go before increasing your investment.

What kind of esports company should you invest in?
Again, this depends on your goals for the investment. If you want to be involved with a particular game or team, then investing in that game or team’s organization is a good idea. However, if you want to have a more general involvement in the industry, then investing in an organization that owns multiple teams across different games might be a better option.

What are the risks of investing in esports?
As with any investment, there are always risks involved. The key is to do your research and make sure you understand the risks before making any decisions. For example, one risk specific to esports is that tournaments can be cancelled or postponed at the last minute due to unforeseen circumstances (like bad weather). This can obviously have an effect on your investment portfolio.

Other risks include the possibility that certain games might fall out of popularity (meaning teams that compete in those games would also lose value), or that investors might not see the ROI they were hoping for. As long as you’re aware of these risks and take them into account when making decisions about investments, you should be able to minimize any potential losses.

Risks and Rewards of Investing Into Esports

Esports is a rapidly growing industry with a lot of potential for investors. However, as with any investment, there are risks and rewards associated with investing into esports. In this article, we’ll explore both the risks and rewards of investing into esports.

Risks

Before making any decisions to invest, it’s critical that you understand the risks associated with esports. Let’s take a look at some of the biggest dangers that you should keep in mind before placing your money in this rapidly growing industry.

Lack of Regulation
The esports industry is still in its infancy, which means that there are very few rules and regulations governing it. This can make it difficult to protect your investment, as there is no guarantee that you will be able to get your money back if something goes wrong.

It’s also worth noting that the lack of regulation makes it easier for unscrupulous individuals to take advantage of unsuspecting investors. If you are thinking about investing in esports, you should be sure to do your research and only invest with reputable companies.

High level of volatility
The esports industry is highly volatile, which means that the value of your investment can fluctuate greatly over time. This can be a good thing if you are able to timed your investments well, but it can also lead to substantial losses if you are not careful.

It’s important to remember that the value of esports investments can change rapidly, so you should only invest an amount of money that you are comfortable with losing.

Shortage of proven track records
Another risk associated with investing in esports is the lack of proven track records. Unlike other industries, there are very few esport organizations with long-term success stories. This makes it difficult to predict which companies will be successful in the future and which ones will fail.

As an investor, you should be aware that many esport organizations are started by inexperienced individuals who may not have the business acumen to make their ventures successful. Before investing, be sure to do your due diligence and only put your money into companies with a strong management team.

Rewards

The global esports market is forecast to grow from $1.1 billion in 2019 to $1.8 billion by 2022, according to research firm Newzoo. That’s an impressive compound annual growth rate of 21.3%.

To put that in perspective, the U.S. sports market is only expected to grow at a 4% clip during that time frame. Even more impressive is the fact that the esports audience is expected to grow from 453 million this year to 646 million by 2022.

So it’s no wonder that everyone from traditional sports teams to celebrities are getting involved in esports.

Conclusion

What are the best ways to invest into esports?
The best ways to invest into esports vary depending on what you’re looking to get out of your investment. If you’re looking to make a quick profit, then investing in individual players or teams may be the best option for you. However, if you’re looking to invest in the long-term future of the industry, then investing in esports infrastructure or content production may be a better option.

How risky is investing in esports?
Like any investment, there is always some risk involved. However, the risk involved in investing in esports is often lower than other investments, such as stocks or real estate. This is due to the fact that the esports industry is still in its early stages of development and thus has a lot of growth potential. Additionally, many people who invest in esports do so because they are passionate about the industry and believe in its long-term success.