November 11, 2020
Major esports organization Fnatic has announced a new $10 million internal funding round and plans to launch a crowdfunding campaign to raise a further $1.3 million.
The internal round of funding was led by Beringea with participation from existing investors Unbound, LVL1 Group, JHD as well as key management. The new round of investment will be used to further grow the already massive Fnatic brand and maintain Fnatic’s place at the top of many esports, as well as hire a new CFO. It also brings the total amount of investment in Fnatic to almost $35 million.
“Esports is an industry experiencing explosive growth, and yet in many ways is still in adolescence,” said Karen McCormick, Chief Investment Officer of Beringea. “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.”
As well as this new round of investment the esports organization has also announced plans to launch a crowdfunding campaign on the Crowdcube platform. This crowdfunding drive will allow fans and small scale investors to own a piece of Fnatic, with the minimum investment expected to sit around the $22 mark, although an exact price is yet to be confirmed.
“We’ve been looking to conduct a crowdfund campaign for a while,” said Sam Mathews, founder and CEO of Fnatic. “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.”
Those who do invest in Fnatic via the crowdfunding drive will get annual, if not bi-annual, reports on the company, and once the pandemic is over Fnatic hopes to hold an annual event for them to attend. Matthews also made a point of noting that most traditional sports teams are owned by billionaires and any kind of ownership for fans is not feasible. But with this new indicative Fnatic fans can own a part of the business and really feel like they have a true stake in the teams that play under the Fnatic banner.
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