Logan McLean, Esports Advisor, for NGame Esports talks about investors and esports organizations compared to tech startups.
North American organization, 100 Thieves, completed its Series B funding round, raising $35 million. In your opinion, what type of investors do you think esports organizations are attracting?
In my experience working directly with potential investors, esports is attracting everyone, potential investors from every background looking to pour money into an emerging market. From misguided sharks thinking they can make a quick dollar; to the calculated, iconic businessmen and owners of traditional sports teams; Jerry Jones, Ted Leonsis, Mark Cuban, and Stan Kroenke.
Mr. Kroenke and Kroenke Sports & Entertainment are the owners of the Overwatch League franchise, Los Angeles Gladiators, and now own Echo Fox’s League of Legends Championship Series slot.
Readers may recognize Kroenke Sports & Entertainment as owners of the iconic teams: Los Angeles Rams, Denver Nuggets, Colorado Avalanche, and the globally known Arsenal F.C.
From an investor perspective, does it make sense to treat esports like tech startups that we would see in Silicon Valley or something else?
How do we explain something to someone who is entirely ignorant of a concept; similar to if you were explaining something to a child, we simplify it. We draw comparisons to ideas already familiar to whom we are telling for them to grasp the new concept more easily. I firmly believe that esports and tech startups are very similar, and by promoting it as such to investors, the more quickly they will grasp this new frontier.