Trust Esports, a new venture capital fund focused on esports startups, announced its formation last week. The fund’s goal is to take advantage of the favorable development in the competitive gaming industry, providing funding for innovative businesses looking to improve the esports market.
According to the announcement, the fund will support 10 to 12 businesses in developing their tools for innovation in gaming. Creating applications, mods, platforms, and services for esports, these companies are tackling areas like improving viewing experience, developing audience monetization solutions, and optimizing playing conditions.
The fund, a collaboration between FIMALAC and Matthieu Dallon, will have €20 million of investment funds at its disposal. FIMALAC is a French holding company with interest in the digital media and entertainment industry through its subsidiary Webedia and Fimalac Entertainment. Then, Matthieu Dallon is the person behind ESWC (Electronic Sports World Cup), an annual gaming tournament featuring various titles. He also created Toornament, an open online platform for gaming tournaments organizers and esports league management.
“The creation of this unique and pioneering fund is testament to the confidence I have in the development of Esports, and in the young French and European talents that drive this industry,” said FIMALAC Owner and President Marc Ladreit de Lacharrière.
With esports continuing to grow steadily year-over-year, topics like viewership experience quality, revenue distribution solutions, and building a transparent and fair environment are constantly at the forefront. Supporting companies with tools that address such issues should greatly benefit all involved parties.
APICAP, a French private equity and venture capital firm, was chosen to manage the fund. Having a focus on seed, startup, and SME companies, the independent management company fits the bill. Dallon and Mathias Monribot, a startup pioneer, will provide sourcing, assistance, and consulting during the process.
Supporting a booming market
The recent explosion of esports has spawned a wide range of companies. While the industry has shown tremendous potential, there still are some facets that need attention for it to keep flourishing.
Venture capital firms have had their eyes peeled on this development. They’re pouring funding into the market on an ongoing basis. This has led to many new features being introduced in the industry, ranging from collegiate esports management to analytics and streaming.
That being said, Trust Esports should have no problems finding viable parties that drive innovation in the industry. The only question that remains is which company’s product will be cutting edge enough to secure the monies.