European esports organisation Fnatic announced today that it has raised $10m (~£7.54m) in a new investment funding round led by venture capital and private equity firm Beringea.
Additionally, the team will launch a crowdfunding equity campaign through Crowdcube, allowing fans to invest in Fnatic and own a small piece of the organisation.
Karen McCormick, Chief Investment Officer of Beringea, commented in a release: “Esports is an industry experiencing explosive growth, and yet in many ways is still in adolescence. Having evaluated the industry from many angles, Fnatic was a relatively simple investment decision given the premier status of the brand, consistency as a true performance company, and growth and engagement of the fan base.
“The business has also become a global leader in a very capital-efficient way, building a standout team while maintaining a clear focus on economics and profitability.”
In addition to Beringea, the $10m investment round included participation from existing investors Unbound, LVL1 Group, and JHD, as well as team management members. The funding will be used to aid Fnatic’s continued global growth and to support its competitive teams. Fnatic has raised nearly $35m (~£26.39m) to date in venture funding.
With the Crowdcube campaign, Fnatic hopes to raise another £1m. The funding drive will run from November 19th to December 7th.
Sam Mathews, founder and CEO of Fnatic, added: “We’ve been looking to conduct a crowdfund campaign for a while. This investment provides the perfect opportunity for our community, friends and enthusiasts to join our established investors and own a piece of Fnatic. Crowdfunding is a dynamic and increasingly popular way to fundraise as it provides an opportunity to transform our active and engaged community into investors by giving them the chance to get closer to our journey than ever before.
“We’re very excited to be working directly with our audience, partnering with them to shape the future of Fnatic, and of entertainment, sports, and gaming performance.”
Esports Insider says: The crowdfunding campaign may only produce a fraction of the investment round, but it’ll help engage fans in a way that we don’t typically see from esports organisations. Sounds like a win-win for Fnatic.