The Seattle-based tech company Matcherino has stepped up its ambitions to generate extra profits for anybody with an interest in organizing esports contests. The brand has announced an extra $1.5 million gained in its latest funding round that will be used to improve its esports services.
It was the latest funding round that Matcherino has carried out since they started operations in 2015. The tech company has already raised nearly $8 million so far, with a significant $2.7 million being added in December 2018.
Previous investors have included the likes of Madrona Venture Group, aXiomatic, Vulcan Capital and Seven Peaks Ventures. But the latest funding round brought new faces to the table such as Galaxy Digital and Wells Fargo Strategic Capital.
Galaxy Digital has already hit the headlines through its innovative approach to blockchain banking technology, and their move to invest in Matcherino could prove to be very shrewd.
Matcherino’s big plans
At the moment Matcherino is a relatively small tech company that employs just 20 people. But Matcherino has big plans to help esports tournament organizers receive more in the way of revenues from the gaming contests that they put on.
This is because Matcherino has developed software that makes it simple for anybody to run gaming tournaments and they will then help the organizer get properly paid by advertisers for their efforts. In exchange, Matcherino will take a cut of the revenue generated by e-commerce sales.
Matcherino already successfully host around 500 esports tournaments each month, and their gaming service extends to managing the payouts that players receive, as well as helping with the sale of virtual items.
But it’s advertising that will make up the bulk of any revenues enjoyed by Matcherino. The firm has recently outlined its latest advertising product that is designed to help companies get their brands featured on popular esports platforms.
This comes in the form of their ‘SponsorQuest’ product that has already helped the likes of Gamestop, Bubba Burger and 24 Hour Fitness access the difficult-to-reach gamer demographic.
Many of the world’s largest companies such as McDonalds and Audi have invested huge amounts of money in sponsoring the world’s biggest esports teams and tournaments. As the revenue from global esports is expected to hit $1 billion in 2019, the activity remains hugely attractive for companies at all levels.
Some video gaming websites like Kotaku have recently reported worrying signs that the esports bubble is set to burst. But with investments into esports related companies approaching $1 billion this year, and prize pools for tournaments like the Fortnite World Cup and Dota 2 The International event hitting the $30 million mark, it seems that competitive gaming isn’t slowing down just yet.
As a result, Matcherino’s vision of helping esports tournament organizers find advertisers and boost their incomes could be very well-timed. Plus with many innovative gaming-related brands like Microsoft, Valve, and Unikrn, making Seattle their home, it seems as though the Pacific North West is well-placed to take full advantage of the esports revolution.