Australian PE Firm Buys eSports Team LG Dire Wolves

AUSTRALIAN PE FIRM BUYS ESPORTS TEAM LG DIRE WOLVES

Guinevere Capital Buys Controlling Stake In LG Dire Wolves (Photo: Guinevere Capital)

TNL Take: Now that the influx of eSports and Pro Team's investments have started, this is only just the beginning across a multitude of sectors.

Australia joined the eSports Investment party last week when Melbourne based Private Equity firm Guinevere Capital bought a controlling stake in local team LG Dire Wolves.

This investment is a bit curious though.

LG Dire Wolves aren't that big and tiny compared to the likes of Dignitas (76ers) and Team Liquid (aXiomatic). They currently only have a League of Legends team with some previous experience with Smite.

The team did recently sign a deal with LG Electronics hence the name.

LG Australia Signs Dire Wolves (Photo: LG Dire Wolves)

There's also very little info on Guinevere Capital - the website just has their logo.

Guinevere's Managing Director David Harris has a traditional Sports background in Cricket, Rugby and Football.

My guess as to why LG Dire Wolves? Local and inexpensive.

LG Dire Wolves joins other eSports teams like Immortals and Team EnVyUs with VC/PE investment.

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.