eSports Company Fnatic Raises $7M Funding From Boston Celtics and Others
Fnatic, a London-based eSports organization with professional teams in popular video games such as League of Legends and Dota 2, announced this week that it has raised $7 million in financing. Lead investors of this round of funding include Raptor Group, the investment company of Jim Pallotta, who is the co-owner and executive board member of the Boston Celtics. Other participating investors are Joi Ito, director of MIT Media Lab; Hannes Wallin, CEO and founder of Fractal Design; and Hersh Interactive Group.
“The major shift [in eSports] has been in the acceptance and inclusion by sports franchises, media companies and high profile individuals who have entered and advanced the industry rapidly,” said Sam Mathews, founder and chairman of Fnatic, in an official company statement.
According to reports by VentureBeat’s GamesBeat, the eSports market is predicted to reach $696 million in revenue this year and is on track to hit $1.5 billion by 2020. The tremendous market opportunity has attracted investors from across the board; in particular, a growing number of traditional sports teams are staking an interest in eSports teams. For example, the Philadelphia 76ers made headlines in 2016 for being the first professional sports team to invest in eSports with the acquisition of international eSports team Dignitas. Sports executives such as L.A. Dodgers co-owner Todd Boehly and Golden State Warriors co-owner Chamath Palihapitiya have also made similar venture investments in eSports organizations.
“Fnatic is at the forefront of advancing esports,” said Chris Pallotta, Raptor Group’s investment officer. “[It is] constantly deploying innovative forms of engagement and monetization that we believe will transform the overall sports and entertainment industry over time.”
According to Fnatic, the new funding will be used to recruit coaches, analysts, and other admin positions to help strengthen the organization’s roster of eSports teams. Fnatic is also planning to invest in training facilities, merchandising, and expanding its international eSports presence.
