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.

eSports Pro Team Investment: NiP Worth $12.5M

ESPORTS PRO TEAM INVESTMENT: NiP Worth $12.5M

(Photo: Bjorn Lindgren)

TNL Take: Owning an eSports team is the new G6.

While it makes sense for a Sports team, even potentially a Media company to invest or those willing to hustle, for a lot it's a vanity play. 

With the huge spotlight on eSports over the past two years, the investment landscape - which I do think is changing - has caused a massive spike in eSports team valuation.

Which for a lot of team owners that have grinded for years; it's time to finally get a paycheck which I fully support.

I hear a lot about team valuations and my reactions range from:

Are you kidding me?!

to

I'm sorry, can you repeat that again?

Again, for certain investors it's a great early bet into a massive future potential.  While I would love to speak about those numbers, I don't reveal confidential information.

 

I will speak about public info however.

 

Swedishstartupspace.com, which I'm fairly certain you can tell what they cover, revealed some very interesting insight into the recent investment into local team, Ninjas in Pyjamas - which is one of the best team names ever.

Here are the juicy details:

2015 Revenue: $2,100,000

2015 Profit: $83,000

$600K Investment at $12.5M Valuation

It's important to note that NiP also owns part of Xtrfy, which sell equipment and brought in $7.1M in revenue last year, which I'm sure helped with the valuation.

For everyone that asked, here's your data for your next pitch meeting.

 

Good luck.

 

TNL eSports Startups 001: Znipe

Swedish eSports Live Streaming Startup Znipe Raises $1M

TNL Take: I can't get Alan Rickman playing Snape out of my head every time I say Znipe's name. 

Swedish based Znipe was started by two former eSports Champions, CEO Johan "Vesslan" Ryman who played for NiP and Business Development Head Christian "Vilden" Lidstrom who played for SK Gaming along with Founder and CTO Erik Åkerfeldt.

Znipe CEO and (Photo: Znipe)

Znipe CEO and (Photo: Znipe)

Znipe just launched at ESL One Cologne and their benefit is providing viewers with the ability to customize your experience from up to 12 streams. A few others are tackling eSports viewership for this more hardcore viewing experience.

I'm curious as to how big the ~10% of the market is compared with the ~90% of the audience which may want just a passive, lean back experience. 

Especially on Mobile.

(via CB Insights)