New Esports Team in League of Legends to be Funded by Venture Capital and Angel Investment
Investment in esports is reaching new heights, with venture capital and private investors pouring record amounts of money into pro gaming companies and the fantasy esports scene. The latest development in this trend is the funding of the newest team in the largest competition in League of Legends, which will be supported by venture capital and angel investment. This marks the first time that such funding has been seen in the esports industry.
The recently revealed esports organization, Immortals, has announced its acquisition of Team 8, one of the franchises that competes in the League Championship Series (LCS), the premiere Western competition for Riot Games’ immensely popular game. Immortals has secured funding from an impressive list of investors, including prominent figures in the sports and technology industries, as well as venture capital firms.
These investors include individuals such as Peter Levin, the president of Lionsgate Interactive Venture and Games; Allen Debevoise, a chairman at Machinima; Steve Kaplan, a co-owner of the pro basketball franchise Memphis Grizzlies; and Brian Lee, famous for co-founding startups with celebrities like Kim Kardashian. The ownership group also includes Machine Shop Ventures, better known as the business alter-alias of the band Linkin Park. Immortals is chaired by Clinton Foy, the managing director of Crosscut Ventures.
Fantasy esports is already a lucrative industry, but top esports franchises have not seen significant revenue growth despite the industry boom. However, Immortals’ investors are in it for the long run. They view esports as a marathon rather than a sprint, which is a refreshing perspective for long-term esports fans who have witnessed the negative impact of short-term money-driven interests in the industry.
Despite its nascent stage, Immortals is off to a promising start. The team has secured a major partner in chip manufacturer AMD, and acquiring Team 8 grants them a position in one of the largest and most stable esports scenes. However, maintaining Immortals’ position in the LCS may require an intense effort, as Team 8 struggled during the Summer season and the roster lacks star talent. Immortals will be announcing its plans for the roster and coaching staff in the near future.
Passion and Long-Term Goals Drive Immortals
Leading the charge at Immortals is CEO Noah Whinston, a former Northwestern University student with experience running a company and building a competitive team. Whinston has enlisted the support of a diverse group of investors who are passionate about esports, including long-time gaming enthusiast Clinton Foy. Foy, who has a background in the gaming industry dating back to the late 1970s, views esports as more than just an investment opportunity. His love for the energy and excitement of esports events motivates him to contribute to the growth and development of the industry.
Both Foy and Whinston recognize the potential of esports to become a globally recognized sport. They aim not only to succeed as an esports team but also to help shape the industry by establishing standards, sustainable leagues, and durable brands. They believe in collaboration with publishers, leagues, owners, coaches, players, and the entire ecosystem to elevate esports to the next level.
The esports industry is expected to grow exponentially in the coming year, with major players like broadcasting giant Turner, fantasy sports sites FanDuel and DraftKings, and streaming platform Twitch entering the arena. However, there is still much work to be done to establish structure, regulation, and industry-wide collaboration. Immortals plans to lead the way in this regard and expand rapidly into other popular esports like Dota 2 and Counter-Strike.
esports, venture capital, angel investment, Immortals, Team 8, League of Legends, LCS, Riot Games, fantasy esports, investment, industry growth