The Quest for Angel Investors in the E-Sports Venture Space
The e-sports industry has seen explosive growth over the past decade, drawing the attention of both venture capitalists and individual angel investors. However, finding the right investors can be a challenge. Not all angel investors are interested in the long-term potential of e-sports, and those who are often require a deeper understanding of the industry to make informed investments.
Angels in the E-Sports Venture Space
The problem of finding angel investors interested in e-sports is twofold. Firstly, the number of such investors is limited. Secondly, the return on investment is often a long-term play, which is not always aligned with the typical expectations of angel investors. These investors, like those backing Facebook, Instagram, or Snapchat, are accustomed to seeing returns in the short term. However, the nature of e-sports is fundamentally different, necessitating a different approach and longer-term horizon.
Investing in e-sports is not a "home run" in the traditional sense. Instead, it's a marathon, where consistent performance and gradual growth over time can lead to substantial returns. This requires patience, a willingness to invest in the future, and a deep understanding of the industry’s potential. For those willing to put in the time and effort, the long-term rewards can be significant.
Venture Capital in the E-Sports Landscape
When it comes to securing larger sums of investment, venture capital firms are a key player in the e-sports space. Venture capital is a type of private equity, a form of financing that is provided by firms or funds to small, early-stage emerging firms. These firms are typically characterized by high growth potential and have demonstrated significant growth already. Venture capital investors are well aware of the risk involved and are looking for companies that can scale and become high-growth ventures.
Hiring venture capital firms for e-sports ventures brings a professional approach and greater resources, but it also demands a clear path for scale and profitability. The investment requires not just passion but also a solid business plan and market strategy to attract these firms.
Digging Deeper with Stephen Hays of Deep Space Ventures
One notable figure in the e-sports investment space is Stephen Hays, Managing Partner of Deep Space Ventures. Stephen has been actively involved in e-sports, investing in several promising startups such as Battlefy, Haste, and Mobalytics. His investment decisions are based on a unique perspective and thesis that emphasizes the intensity and frequency of engagement in e-sports, as well as the industry's growth potential.
For Stephen, the combination of consistent high engagement and the trajectory of e-sports growth makes it an attractive investment opportunity. He believes that e-sports startups can provide the same level of return as other high-growth tech ventures but with a more specialized focus.
To learn more about Stephen's perspective on investing in e-sports, you can listen to Episode 15 of The Esports Narrative. This episode delves deeper into how he views the e-sports space and what makes certain ventures particularly appealing to him.
Whether looking for individual angel investors or venture capital firms, the e-sports industry offers unique opportunities for those willing to pursue long-term growth and innovation. Investment in e-sports requires a strategic and patient approach, but for those who are committed, the rewards can be substantial.