It’s been a big week for esports organisation Fnatic. First off, the organisation’s CS:GO team has been competing in the current Flashpoint Season 2 tournament as one of the three invited teams to the event. In their Group Stage bracket, called Midsommar, they have won their opening contest against cOntact Gaming by a 2-1 scoreline, moving them into the Upper Bracket Final against MAD Lions to be played on Saturday November 14.
However, the amount of money that their CS:GO team could win in that event is dwarfed by the news that the organisation has secured a total of $10 million in investment in the company, as well as opening up the opportunity for esports fans and supporters of the team to crowdfund the team.
This new tranche of cash has been raised by a round of internal funding, which was led by Beringea with a number of existing investors in the franchise, Unbound, LVL1 Group, and JHD all contributing, as well as key management officials from within the Fnatic organisation.
In total, this means that the amount invested in the esports franchise will now top around $35 million, and the additional funds generated are set to be earmarked to hire a new Chief Financial Officer, as well as being used to further grow the Fnatic brand name both within the esports and esports betting industry, as well as being used to enhance Fnatic team’s prospects of remaining at the elite level in a number of esports disciplines.
“Simple Investment Decision”
Speaking about the decision to invest more in Fnatic, the Chief Investment Officer of Berengea, Karen McCormick, commented that,
“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 level 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.”
Crowdfunding via Crowdcube
Alongside this new investment at corporate level, the company is also inviting fans and other investors to join in with a new crowdfunding venture on the Crowdcube platform, where it hopes to raise an additional $1.3 million in investments.
The move, which may be of interest to fans, smaller scale investors, and even those who may like to bet on esports, but who may prefer to gamble some of their funds in a share of one of the premier brands, rather than the latest CS:GO betting lines or similar.
Sam Matthews, the CEO of Fnatic, commented that the company had been “looking to conduct a crowdfunding 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.”
Those who choose to invest via crowdfunding will receive regular reports on the company and once the Covid-19 pandemic is controlled, Fnatic hopes to hold an annual shareholders event for investors to attend.
Featured Image Credits: Fnatic.com