“Hyper-Growth” a term that can be used to describe the eSport sector where numbers keep braking new highs, and team like the french team vitality getting bigger and bigger.
One Year ago, rewind.gg -a 50 million Fund that specializes in competitive video games- set his eyes on the french team vitality with the first round of €20 million. The fund, coming from the wealth of Indian billionaire Tej Kohli, opened its wallet again to bring €14 million to the French Team, increasing to €34 million the total of the investments into Vitality. A European record.
Esport is the future of entertainement
“Kids nowadays don’t grow up playing football or basketball, the grow playing video games” added Amit Jain the chairmen of the fund.
The investor affirmed he made a bet on the long term, wants to make of Vitality “one of the first billion euro clubs”.
With a staff made of a hundred people, the club is now able to position a team on almost all the major leagues, from “Fifa” to “League of Legends”, passing by “Fortnite” or “Counter-Strike”
Betting early in the cycle
For Nicolas Maurer, CEO, and co-founder of Team Vitality, “we are going toward a 2 paced ecosystem in which a small number of team will gather the majority of the available funds”. “It will last a few years, but this new fundraising confirms our place among the European Top 3 (along with G2 and FNATIC), besides our role of leading the French esport”, he therefore embraced.
According to him, the current investors copy their strategy on the one used in traditional sport 20 years ago: “You need to bet early in the cycle to reap in the long run”. Overall, esport should generate $1,1 billion in revenue this year, according to Newzoo. A nice return compared to the video game market in his entirety ($134 billion) but a 3x growth (26,7% against 9,5%).
This new fundraising should allow Team Vitality to develop internationally, in particular in Asia where the team starting to count some fans, it will also allow the team to strengthen the coaching to give the best mental and physical preparation to the players. The yellow team already endowed this year a training center in the core of the Stade de France. “We’re a sports club, we need to win titles,” said Nicolas Maurer.
Still, it’s one of its best rivals will head to the final of League of Legends Worlds championship this Sunday – the biggest event of the esport scene – in Paris. “A frustration” for this young boss who reassures himself by underlining the unreal performance of his Counter-Strike team.