Thanks to Twitch, e-sports is hitting record numbers

The space has raised more than half of its total funding since Amazon acquired Twitch last year

Financial trends and news by Steven Loeb
July 3, 2015
Short URL: http://vator.tv/n/3e8c

Do you ever realized that nobody really talks about the e-sports category? It's a space that I've covered many times, with numerous companies, including e-sports betting leagues and game-streaming sites and video capture communities, all raising funding or getting acquired. It's a fast growing space, and one that seems to get ignored a lot of the time.

Now we can see just how fast it is growing as deal activity in the e-sports category hit a record quarterly high in the second quarter of this year, according to new data from CB Insights, with $37 million invested in 12 different deals.

The amount of funding is actually down a bit from the previous quarter, when $40 million was invested in 8 deals in the first quarter of 2015. The record for the amount of funding put into this space occurred in the first quarter of 2014, when $54 million was invested in only three deals. 

A big spotlight was put onto this space when social video platform Twitch was acquired by Amazon for nearly a billion dollars in September of 2014.

Twitch is a company that allows gamers to record live broadcasts of their videogames. The company has raised a total of $35 million in venture capital funding, including a Series C $20 million investment led by Thrive Capital with participation from WestSummit Capital and Take-Two Interactive Software in October 2013.

Since that acquisition, the space has exploded. Companies in the e-Sports and game-streaming categories have raised just over $295 million since the start of 2010, according to CB Insights data. The most amazing part: that over half of those deals, a total of 56% of them, have come since, you guessed it, September of 2014. It is not a coincidence that that just happens to be when the biggest deal in this entire category went down.

Since then, some of the big deals in the e-sports space have included Vulcun, a tournament site for fantasy e-sports, raising $12 million; Raptr, an optimization platform for PC gamers, raising $14 million; daily fantasy sports platform AlphaDraft raising $5 million; FanDuel, a provider of fantasy sports league, raising $70 million; and sports video analysis platform Hudl raising $72.5 million.

Other big players in this space include gaming video site Machinima, which raised a $24 million financing round in February for a total of $92 million; video game tournament company Major League Gaming, which has raised $67 million; Azubu, a global broadcast network specializing in delivering premium live and on-demand eSports programming, which has raised $35 million; and Kamcord, which helps players record and share video game playing, which has raised $28 million in funding, 

(Image source: neoteo.com)

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