If you were wondering about the future of esports and potential stagnation, your doubts should be dispelled. Esports is stronger than ever – with plenty of money flowing in.
Unikrn reports that famous American esports organisation has filed a SEC report this Wednesday detailing the amount of equity investment raised. It raised just over $19.7 million in equity, out of $25 million total offered. It is seriously closing in on its projected amount.
The source of the investments is unknown at this time. Venture capital funds generally required 15 to 25 percent equity per financing round. If they are involved, Cloud9’s value could hover around $100 million, according to estimates from Unikrn.
The cash injection has come at the right time, as Cloud9 joined the Overwatch League. Reportedly, it cost them a whopping $20 million to be one of the 12 participating teams in London. Cloud9 is also poised to reenter the NA LCS, which should cost them somewhere in the vicinity of $10 million. They will have to cover $5 million of that sum upfront.
This is not the first funding round that Cloud9 had. Last November they raked in $3 million, with another round this March that drew in Tesla board members, Reddit co-founder Alexis Ohanian and other high-profile investors from the world of sports.
Cloud9 was founded in 2013 as a League of Legends and has since rapidly expanded, fielding CS:GO and Overwatch rosters to much success. Their Dota 2 team has been disbanded, but a return is possible in the future as their lot improves.