TNL eSports Startups 008: Gumbler Grabs $5.5M For Real Money eSports

TNL ESPORTS STARTUPS 008: Gumbler

TNL eSports Startups 008: Gumbler (Photo: The Next Level)

TNL Take: The Market Opportunity between Gaming, eSports, Casinos and Gambling is enough to make any Venture Capitalist salivate.

The risks are clear though.

Just ask the Legal team for DraftKings/Fanduel or Valve with it's massive PR mess around Counter-Strike Gambling.

This week the UK Gambling Commission brought its first prosecution against Craig “NepentheZ” Douglas and Dylan Rigby, who have been charged with promoting a lottery and advertising unlawful gambling site which used FIFA Coins.

Even with that, Venture money continues to flow into the space. Last week I wrote about Real Money platform Rumblemonkey which launched publicly after raising an angel round.

Yesterday, Swedish startup Gumbler announced a $5.5M investment for their Real Money skill based gaming platform.

TNL eSports Startups 008: Gumbler (Photo: Gumbler)

Gumbler claims players of the Mobile game Mad Skills Motocross 2 have won a total of €650,000 in 2016 with an average revenue of €45 per paying player each month.

TNL eSports Startups 008: Gumbler (Photo: Gumbler)

Gumbler is not just looking at Mobile as an exclusive platform with upcoming PC support.

Interesting to also note that Gumbler VP Simon Sunden is the former Head of eSports at MTGx, the company that invested in ESL.

Finally, what is in the water in the Nordics?

Over just the past two months, I've covered four Nordic eSports investments:

Sweden: Znipe Raises $1M

Sweden: Strife Raises $1.5M

Sweden: Team NiP Worth $12.5M

Finland: Critical Force $4.5M

 

Winter maybe coming in the North but eSports investment is heating up.

 

OK. I even hate myself for that line.

TNL eSports Startups 007: Rumblemonkey Rolls Out Real Money Platform

TNL ESPORTS STARTUPS 007: Rumblemonkey

TNL eSports Startups 007: Rumblemonkey (Photo: The Next Level)

TNL Take: Rumblemonkey recently came out of stealth at PAX West for their Head-to-Head real money eSports platform. Rumblemonkey has raised an undisclosed amount of Angel funding.

Rumblemonkey Real Money Platform (Photo: Rumblemonkey)

At PAX West, Rumblemonkey debuted a Hearthstone 1v1 game for real money with proceeds benefiting charity.

Rumblemonkey at PAX West (Photo: Rumblemonkey)

Real money "platforms" for eSports are not unique and there are plenty of other startups in the space.

Founder and CEO Jacob Rapaport did tell me an interesting tidbit. Rumblemonkey offered both a $5 and $100 option to play.  Rappaport said they saw a "significant" portion of the audience choosing the $100 option with Rumblemonkey's Twitter announcing $1,000 generated in a single day.

Outside of the usual Skill Based Gaming vs. Gambling conversation that inevitably comes up, is the standard issue of building a product on someone else's IP:

 

You ultimately need Publisher support.