E-sport ( stands for electrical sports ) is some type of multiplayer video game and is usually played by professional players. Games that are played in E-sports right now are CSGO, League of Legends, Dota 2, etc. It also has lots of viewers for example last year there was an audience of more than 443 million people (245 million casual viewers and 198 enthusiasts).
Many people might think that is boring watching other people play a video game for hours when you can do that by yourself and enjoy it more. Well not only can you learn new things from professionals on how to be the best but it is also really fun to watch it overall.
They are watched on popular streaming services like Twitch and Youtube (you can also watch live streams in 2021 for free) and what makes it even more fun to watch is that you will be watching your favorite gamer playing in real-time.
The age differs from one league to another because each one is allowed to set their own age restriction for example in Super League gamers can be 6-16 years old while in Overwatch League the player has to be at least 18 years old.
Should I invest in E-sports?
Well, seeing how E-sports are worth more than 1$ billion, investing in e-sports doesn’t really sound like a bad idea. E-sports have gained a lot of popularity over the last few months due to the pandemic since people had nothing better to do at home E-sports became a hoppy of lots of people.
Due to its rapid popularity, people believe that it has become really close to the Wall Street investors (an investment community that includes things like large banks, securities, stock exchanges, etc). Competitive gamers have millions of supporters and receive prizes equally as large. On the other hand, entertainment stocks are usually highly speculative, and being an entrepreneur it can be something that you would want to look at it.
E-sport betting sites have also gained a lot of attention (Valorant betting being one of the most popular ones) which have sponsored a lot of important E-sport tournaments and we really don’t see this stopping anytime soon seeing how much they profit. To invest first, you must learn the different types of stocks on offer.
One way to start investing in e-sport right now is through public markets. Look below for two companies that can you look forward to.
A company that you can start with is Tencent which is the owner of Riot Games and at the same time creator of Valorant. Valorant is expected to grow a huge e-sport scene and gain a lot of money due to the gambling that arises.
YouTube has also made a really big investment into esports to date, signing an exclusive multiyear broadcasting deal with gaming platform Faceit to stream the Faceit’s E-sports Championship.
Obviously public market is not the primary way of investing in E-sport but it is a great way of starting. There are lots of investors who want to start but feel like it would be really challenging since there are a lot of entrepreneurs/companies who try it but lose a lot of money and don’t really get anything in return. But if E-sport is something that you want to try then we encourage you to try it and see if it works out. Their overgrowth is significant over the year.
Although you have to be careful because it is a risky market. These 1$ billion could change in just a hundred dollars if things don’t go the right way. Look into the industry carefully (this isn’t just a simple investment but a lifetime thing) at their advantages and disadvantages to help you with your decision.
If investing in E-sport is a career that you chose and you are a beginner then you can find some helpful tips below:
- Don’t try to find a deal right away. The first thing that you should do is learn the different types of E-sports stock on offer.
- Build your personal network since your access to a deal can be heavily reliant on your personal network. It might be hard at first but by putting a lot of work into your passion you can achieve it.
- Avoid “talking down” to another investor as much as possible since you won’t be able to get a deal if others don’t have any respect for you due to your poor professionalism as an entrepreneur. Respect each and every one.
- List a few potential revenue streams for your business but not too many since it can give you a lack of focus. Extra tip: Stay away from “consulting” for a potential revenue stream since this is a clear red flag for when you are looking for investing in E-sport.