European esports organization Fnatic has announced that it’s raised $10 million in an internal funding round led by venture capital and private equity firm, Beringea. Additionally, Fnatic will let fans invest and own a small piece of the organization through a crowdfunding equity campaign.
Fnatic Raises $10M
In an internal funding round led by Beringea, Fnatic raised $10 million, bringing its total raised funds to $35 million. The participation of existing investors Unbound, LVL1 Group, JHD, and key management helped reach goals. Fnatic will use the new round of investment to further establish its brand and remain at the top of esports. Additionally, it aims to “build a standout team while maintaining a clear focus on economics and profitability.”
On top of that, Fnatic will launch a new crowdfunding equity campaign through Crowdcube. This campaign allows fans to invest and own a piece of the organization, although minimum investments look like $22 thousand. Still, no real mark has been provided. Those who invest will receive annual company reports, be a part of the org, and likely attend annual events.
Sam Mathews, founder and CEO of Fnatic, also spoke on the major announcement. He stated the benefits of the long-awaited campaign and how he wanted fans to take a part in the organization.
“We’ve been looking to conduct a crowdfund campaign for a while.” Sam said. “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. 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 entertainment, sports and gaming performance.”
Esports Growth and Equity
In a press release, Karen McCormick, Chief Investment Officer of Beringea, stated how much esports grew thanks to Fnatic’s strong brand. “Esports is an industry experiencing explosive growth, and yet in many ways is still in adolescence,” Karen said. “Having evaluated the industry from many angles, Fnatic was a relatively simple investment decision given the brand’s premier status, consistency as a true performance company, and growth and engagement of the fan base.
As each year passes, it seems like the numbers get bigger and bigger. With Fnatic securing $10 million and totaling their investment to $35 million, fans wonder what’s next. After having continuous successful financial runs, the European powerhouse remains on top, both in competitive gaming and business. Overall, Fnatic is one group that has marked itself in esports history and for once, fans can take part in that legacy.
Written by Jay Hunter
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