There is a $12 million funding round for US sports-focused venture capital funds Elysian Park Ventures and Cerro Capital Gamers, publisher of 16 Australian esports and entertainment titles.
Elysian Park, a subsidiary of the Los Angeles Dodgers, and Cerro, which was founded in 2021 and announced investments in the religion of sports earlier this year, are leading Series A funding. He is affiliated with Powerhouse Capital, an LA VC firm with investments in athletic and sports betting technology company Boom; Australia’s Aura Ventures, which helped take gamer data company Catapult public; and Australian firm Artesian, which has invested in tennis coaching start-up Bestshot and performance-focused esports emotes. The financing will allow Gamurs to make further acquisitions.
“In terms of the fundraising round, it makes sense for us to have some additional capital and a bit of dry powder on hand and see what acquisitions we can make,” Gamers CEO Riyad Chikhani said in a phone call from Sydney. are capable.” “We saw the writing on the wall in the context of the market and the economy… and so the low advertising rates that generate our revenue from our business and the many deals we receive make sense to think about talk about what additional capital is required.” What would that mean for business.”
Founded in 2015 by 27-year-old Chikhani, Gamurs expanded globally in 2016 with the acquisition of a publishing company in Austin, Texas. Esports releases by players – including point esports and Pro Game Guide– Has an average of 55 million monthly readers.
“Most of our employees live in the US, with 80% of our sales coming from the US, so it makes sense to have investors with a deep network of investors and a deep understanding of the US market,” said Chikhani. It was natural for Elysian Park to align with investing in esports, esports and general media, and then Cerro tried to invest in everything gaming and development as well, so it made sense. The round went pretty well. ,
Previous seed round investments have come from Australian investors including Allium Capital and Perle Ventures. In addition, a number of individual investors backed the company through an accelerator operated by Australia’s largest automobile association when Chikhani was a 19-year-old university student.
Chikhani said that Gamur is growing fast; In its most recent fiscal year, which ended in June, the company reported sales growth of 180% and profit margins that exceeded that rate, thanks to the rapidly increasing popularity of exports. While he declined to name specific dollar amounts, gamers’ purchase of the esports title in late September provides some context. Gumus paid $6.8 million (about $5 million) to Toronto-based Enthusiast Gaming for six titles, including operation sports and the destroyerEarnings for the acquired group were approximately $1.1 million, according to a Nasdaq-listed vendor disclosure.
“That [esports] The industry has surpassed $1 billion in terms of revenue and that’s really exciting, but it’s still pretty small given the gaming market,” said Chikhan. “The eSports audience is quite significant – 550 to 600 million – and growing very fast. We are confident that the eSports market will have over a billion viewers in the next five, ten years.
The executive said investing in esports franchises by owners of mainstream sports leagues is a sign the sector continues to grow. “It’s an incredible validation of what the market is going to be in the next 20, 30, 40 years,” Chikhani said. “Being the world’s largest English-language publication is a long-term investment.”