Esports is a rapidly growing entertainment sector. The global esports audience has grown from $1.2 billion in 2015 to $3.5 billion in 2017.
Esports is now bigger than professional sports such as football or basketball.
Investing in esports is a great way to earn passive income. There are several ways to invest in esports.
Some of them include buying shares in teams, investing in startups, and even creating your own esports team.
What Is Esports?
In brief, Esport is an organized form of competitive gaming where two or more players take part in various games.
These games may be played on electronic devices like computers or consoles.
The most popular esport is League of Legends. It’s a multiplayer online battle arena game that uses the same technology as video games but with higher stakes (e.g., millions of dollars).
The popularity of esports continues to increase on YouTube. Gaming videos have increased by nearly 50% this year.
This growth was led by League of Legends, Counter-Strike: Global Offensive, Dota 2, Fortnite, Overwatch, Minecraft, PUBG, and Super Smash Bros (see also ‘Who Is The Best Character In Super Smash Bros?‘).
How To Invest In Esports
There are many ways to invest in esports, including crowdfunding, venture capital, private equity, and traditional stock markets.
Crowdfunding
Crowdfunding allows you to raise money through social media platforms.
You can use crowdfunding to fund ideas like starting a business, building a product, and funding a new eSports team.
You can also use crowdfunding to invest in esports companies. For example, you could back a startup company that makes esports equipment.
Venture Capital
If you want to invest in esports directly, you can do so using venture capital. Venture capital is when large financial institutions provide financing for businesses.
These institutions are looking for high-growth potential businesses. They usually invest in early stage companies.
Private Equity
If you already know which companies will grow, you can invest in their stocks privately. Private equity firms buy these stocks to help manage their growth.
Traditional Stock Markets
Finally, if you don’t mind putting in work before seeing any returns, then you can invest in esports via the traditional stock market.
This means buying shares in a particular company. If the company grows, then you make profits.
Some people prefer investing in esports because they believe it’s safer than other investments. That said, there are risks associated with all types of investing.
For example, you could lose money investing in esports. However, you could also lose money investing in real estate, gold, or cryptocurrencies.
Is Investing In Esports Worth It?
It depends on what you expect out of your investment.
If you want to get rich quick, then investing in esports isn’t worth it. Instead, focus on making money slowly over time.
However, if you want to enjoy some extra cash while watching your favorite esports matches, then investing in esports might be worth it.
Investment Advice
When investing in esports, you should always look at the long term.
That means you need to consider how much money you plan to spend today versus how much money you plan on spending in five years.
Also, you need to think about whether you’re willing to put in the effort required to succeed.
If you aren’t willing to put in the work, then why would anyone else care about your success?
Finally, you need to decide whether you want to invest in one specific esports industry or multiple industries.
For example, if you want to invest in gaming, then you could choose between gaming hardware, software, and services.
Or, if you want to diversify, you could invest in esports teams, leagues, tournaments, and organizations.
Stocks To Know About in Esports
When investing in something, you want to know what the most valuable things are.
The same goes for investing in esports. Here are three stocks you should know about:
1) Activision Blizzard (ATVI)
Activision Blizzard is an American video game publisher headquartered in Santa Monica, California. The company was founded in 1979 by Bobby Kotick.
Activision Blizzard has more than 300 million active monthly users across its games.
These include Call Of Duty, Overwatch, World Of Warcraft, Hearthstone, Diablo III, Destiny 2, and many others.
2) Electronic Arts (EA)
Electronic Arts is an American video game developer and electronic entertainment company based in Redwood City, California.
Founded in 1982, EA employs more than 20,000 employees worldwide.
EA published games such as Madden NFL, FIFA Soccer, Battlefield, Need For Speed, Star Wars Battlefront, and Mass Effect.
3) Tencent Holdings Limited (TCEHY)
Tencent Holdings Limited is an international Chinese technology company that develops online games, social media platforms, and mobile apps.
Tencent Holdings Limited operates under two subsidiaries: Tencent Games and Tencent Music.
Other companies with a stake in esports include NVIDIA Corporation, Sony Interactive Entertainment, Intel Corporation, Microsoft Corporation, Epic Games, Ubisoft, Square Enix, Valve Corporation, Facebook, Google, Apple, Amazon, Twitch, and YouTube.
Indirect Or Direct Investments?
To start investing in esports, you first need to determine whether you want to invest directly or indirectly.
Indirect investments involve buying shares in publicly traded companies.
These types of investments are typically easier to make because they don’t require any additional paperwork.
However, indirect investments can also be risky because you have no control over the company.
On the other hand, direct investments involve purchasing equity in privately held companies.
This type of investment provides you with more control over the company but requires more paperwork.
However, there are still plenty of ways to invest in esports without having to go through all of this hassle.
Final Thoughts
Esports is a complicated yet profitable aspect of the gaming industry.
It’s important to understand how it works before you jump into investing in esports.
If you do your research, you will find a variety of different strategies that allow you to get started on your path to financial success.
My name is Ashley Newby and I want to put integrity back into esports and get the hype surrounding them paramount once more. During my teenage years, I happened to stumble across a Street Fighter tournament online and I was hooked.
From that day, I have kept up with and watched many tournaments including Valorant, Super Smash Bros, and League of Legends. I even got to compete in my first one earlier this year!
