Where To Invest In Esports?

If you’re wondering where to invest in esports, you’re not alone. The esports industry is growing at an incredible rate, and there are plenty of opportunities for investment. However, it can be tricky to know where to start.

In this blog post, we’ll explore some of the best places to invest in esports. We’ll look at the different types of investment opportunities available, and we’ll give you some tips on how to choose the right one for you.

So

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. The most common video game genres associated with esports are real-time strategy, first-person shooter (FPS), fighting, and multiplayer online battle arena (MOBA). Tournaments such as The International, the League of Legends World Championship, the Battle.net World Championship Series, the Overwatch World Cup, and the FIFA eWorld Cup are among the biggest in esports. Although organized online and offline competitions have long been a part of video game culture, these were mostly between amateurs until the late 2000s when participation by professional gamers and spectatorship in these events saw a large surge in popularity.

Organized esports tournaments began occurring in the 1970s when games such as Spacewar and Super Bug were played on university mainframes. Early interest in esports was fueled by popular Modding communities surrounding games such as QuakeCon and Cyberathlete Professional League (CPL). In 1997, South Korean media conglomerate KeSPA was formed to promote esports in the country. Meanwhile back in North America during this time StarCraft: Brood War tournaments hosted by Major League Gaming (MLG) were gaining popularity with prize pools reaching up to $10,000 USD.

The global Esports market

The global Esports market was valued at $194 million in 2016 and is projected to grow to $696 million by 2022, according to a report by market intelligence firm Newzoo.

Investors are pouring money into the nascent industry, betting on its potential to become the next big thing in sports. Here’s a look at some of the top companies and organizations in Esports, and where they’re investing.

Riot Games: The company behind “League of Legends,” one of the most popular Esports games in the world, with over 100 million monthly active players. Riot Games is majority-owned by Chinese tech giant Tencent.

Tencent: In addition to its stake in Riot Games, Tencent also owns 100% of Supercell, the gaming company behind “Clash of Clans” and “Clash Royale.” Tencent also has a majority stake in MapleStory publisher Nexon, and a minority stake in U.S.-based Activision Blizzard, which makes “Call of Duty” and “Overwatch.”

Activision Blizzard: In addition to Call of Duty and Overwatch, Activision Blizzard’s roster of games includes “World of Warcraft,” “Hearthstone” and “StarCraft.” The company has compete for attention in the growing esports market by creating its own professional league for Overwatch, called the Overwatch League.

Electronic Arts: One of the largest video game publishers in the world, with a roster that includes popular titles such as “FIFA,” “Madden NFL” and “Battlefield.” EA has been an early investor in esports, partnering with organizations such as Major League Gaming (now owned by Activision Blizzard) to host tournaments for its games.

Cloud9: A North American organization founded in 2013 that fields teams across several different esports games. Notable Cloud9 squads include its Counter-Strike: Global Offensive team, which won the ELEAGUE Major Boston 2018 tournament earlier this year, as well as its League of Legends team, which finished second at last year’s Mid-Season Invitational.

Revenue model of Esports

Esports is a form of competition using video games. Esports often takes the form of organized, multiplayer video game competitions, particularly between professional players. The most common video game genres associated with esports are real-time strategy, first-person shooter (FPS), fighting, and multiplayer online battle arena (MOBA). Tournaments such as The International, the League of Legends World Championship, the Battle.net World Championship Series and the Overwatch World Cup are among the most prestigious in the world. Esports is a rapidly growing industry with immense potential. According to a report by Goldman Sachs, the global esports market is expected to generate $3 billion in revenue by 2022.

There are two main revenue streams for esports: media rights and sponsorship. Media rights are sold to broadcasters in order to televise or stream tournaments. In 2018, media rights generated $349 million in revenue, accounting for nearly 12% of the total esports market. This figure is expected to grow to $1.79 billion by 2022. Meanwhile, sponsorships are sold to brands that wish to associate themselves with esports teams or tournaments. In 2018, sponsorship generated $897 million in revenue, accounting for nearly 31% of the total esports market. This figure is expected to grow to $2.96 billion by 2022.

Investors can gain exposure to the esports industry through a number of different channels. For example, they can invest in stocks of companies that own or operate esports teams or organize tournaments (such as Activision Blizzard and Electronic Arts), or they can invest in ETFs that track equity indexes with significant exposure to the industry (such as the Roundhill BITKRAFT Esports & Digital Entertainment ETF).

Why invest in Esports?

Esports are a rapidly growing industry with immense potential. Here are some key reasons to consider investing in esports:

-Esports offer high engagement rates and strong growth potential.global esports audience is estimated to reach nearly 600 million this year, up from just over 500 million in 2019. This represents year-over-year growth of almost 20%. And over the next five years, the global esports audience is expected to grow even further to reach nearly 700 million people by 2023.

-Esports have a young, educated, and affluent demographic profile. According to a report from Goldman Sachs, the average esports viewer is 32 years old and has an annual household income of $58,000. This is significantly higher than the general population and other traditional sports audiences. In addition, 61% of esports viewers have a college degree.

-Esports offer a unique opportunity for brands to reach their target audiences. According to Nielsen’s Esports Playbook, 77% of esports fans say they are more likely to purchase from brands that sponsor esports teams or events. And 82% of fans say they are more likely to recommend products from those same brands.

These factors make investing in esports a very attractive proposition for both companies and individual investors alike.

How to invest in Esports?

You can invest in esports in a few different ways. One is to invest in an esports organization, either through equity crowdfunding or by buying shares on a stock exchange. Another way is to invest in the companies that enable esports, such as those that make gaming hardware or develop games. You can also invest in the companies that are driving the growth of esports, such as those that produce esports content or run esports tournaments. Finally, you can invest in the people who play esports, either by sponsoring them or by investing in their training and development.

Risks of investing in Esports

Before you invest in anything, you should always be aware of the risks involved. The same is true for investing in esports. Here are some of the risks you need to be aware of before investing in esports:

1. The Esports Industry Is Still Young

The esports industry is still relatively young and it is constantly changing. This means that there is a lot of uncertainty surrounding the industry which could lead to investments not performing as well as expected.

2. Lack of Regulation

Another risk to consider is the lack of regulation in the esports industry. This means that there is a greater chance for fraudulent activities to take place.

3. Volatile Nature of Esports Events

Esports events can be very volatile and this can have a negative impact on investments. For example, if an eSports team unexpectedly loses a key player, this could lead to a decline in performance and ultimately lower investment returns.