The Rise of Esports Brought to you by: What are Esports? Esports - - PowerPoint PPT Presentation

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The Rise of Esports

What are Esports?

• Esports is a form of competition using video games. Most commonly,

esports take the form of organized, multiplayer video game competitions, particularly between professional players. -WikiPedia

The Buildup…

• Video Games invented, competition

limited to same household...some random stuff like Starcade (144 episodes)

• In late 80s/90s competitions began to

appear (remember the movie The Wizard 1989)

• LAN based competitions become

more common-internet speeds were not fast enough to allow remote competition

• Counter-Strike
• Star-Craft
• WoW
• The proliferation of widespread

broadband internet (after 1997 asian financial crisis theory)allowed for the explosive growth of the industry...

ESPORTS CHAMPIONSHIP 2017

What’s happening now

• Traditionally, money was made focusing on game sales to the gamers

themselves

• Now publishers are focusing on less direct methods
• Content creators (Twitch and YouTube)
• This is a cost effective marketing plan
• Grows audience
• Lots of Crossover happening (DeadMau5, Gordon Heyward, Post Malone)
• Esports is perfect storm
• Grows engaged and active communities
• Prolongs lifespan of game titles
• Transforms titles into true entertainment Brands
• Number of viewers far exceeds number of gamers and this allows monetization
• pportunities.

Why it matters… we love UP and to the RIGHT!

• Hundreds of Millions being

invested

• Extremely valuable demographic
• 18-24
• High income earners
• Global audience
• Market is fragmented
• Opens door for “arbitrage”
• pportunity

2 4 6 8 10 12 Category 1 Category 2 Category 3 Category 4

Up and To the Right Chart!

Series 1 Series 2 Series 3

You already know some of the major players

• Publishers
• Electronic Arts (EA)
• Activision/Blizzard (ATVI…)
• Hardware
• Dell (Alienware)
• ASUS
• ACER
• Streaming
• Facebook
• Twitch (Amazon)
• YouTube

Big Time Investor Involvement

• Magic Johnson
• Jeff Vinik-Owner TB Lightning
• Peter Guber- GS Warriors
• Ted Leonsis- Wash Wizards
• Robert Kraft- NE Patriots
• Rick Fox
• Joe Montana
• Hunter Pence
• Accel Partners
• Advancit Capital
• Amplify.LA
• CAA Ventures
• GGV Capital
• CRCM Ventures
• Courtside
• Sequoia Capital

Esports 101

• MOBAs (Multi Player Online Battle Arena)
• League of Legends
• Dota2 (Defense of the Ancients)
• Smite
• Shooters
• PUBG
• Call of Duty
• Real Time Strategy
• StarCraft
• MMO (Massive Multiplayer Online)
• World Of Warcaft
• Card Games
• Hearthstone (basically Magic!The Gathering)
• Gwent

**To get a quick understanding of what is popular and trending, visit twitch.tv and pay attention to top 25 games

Where I See OPPORTUNITY

• Public Companies Include ATVI and Tencent (other IPOs coming)
• Tier 1 Opportunities are mostly gone
• This leaves Tier 2 Organizations
• There are no set metrics for valuation (aka lots of arbitrage available!)
• Challenges include identifying solid management and growth plan (kind of like any other

business!)

• Talent on team important factor, but front office is 80%
• If you are looking for exposure with a non-endemic brand
• Great way to get access to a young and wealthy demographic
• Far cheaper than TV/Print
• My personal strategy
• Developing infrastructure on the business side
• Very few companies have strong foothold
• You may not be a Hotel expert, but you can probably name 3-5 Tech companies in that space,

same for transportation, fashion, etc… there are few household names in esports!

***This content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances.***

Call me CASHFLO

• Mark Flood
• Discord = cashflo#2330
• IG = cashflo
• Facbook.com/markflood
• Twitter = @thumbtalkin
• Email = cashflo@origin.gg