Logan McLean, Esports Advisor, for NGame Esports talks about Modern Times Group (MTG) and valuations in esports.
Sweden based digital entertainment company, Modern Times Group (MTG), invested $11 million in 7 game and esports startups in the first half of 2019. Investing in 7 startups in 6-8 months is pretty aggressive. What do you think the strategy is for MTG?
Modern Times Group has an incredible diverse asset pool. I am confident that their investment decisions are another round of successful ventures into various technology and game development sectors. They have a history of stimulating companies and projects that they engage in throughout different industries. I would be so bold as to say it is business as usual for MTG and would expect more ventures announced throughout the year.
Should esports startups be valued just like startups in other industries, or should the valuation be different?
Esport organizations should be funded like tech startups and ran very similar. With that being said, the expected RoI should be treated like traditional sports teams. It is when investors enter the market with expectations different than these see frequent frustration and failure. With the exponential increase to tournament pot sizes, the value of players, and organizations owning the rights to said players should increase in a manner that reflects that value.