CHARLOTTE – According to ia recent SEC filing, Charlotte-based esports conglomerate ReKTGlobal has secured an additional $7,391,006 in equity funding.
The company, which already boasts investors Steve Aoki, Imagine Dragons, Nicky Romero, Rudy Gobert, Tainy, Landon Collins, and Nick Gross, and owns and manages Team Rogue, is seeking to build the future for gamers globally.
According to a December press statement, TikTok stars Josh Richards and Griffin Johnson are the newest investors and members of the ownership team. ReKTGlobal bridges the gap between traditional sports and esports, is a competitive gaming organization, and an esports marketing company, according to the company’s press statements.
Nearly a year ago, Business Insider predicted a viewership growth of the industry of 9 percent compounded annually between 2019 and 2023, anticipating viewership to grow to 646 million people in 2023.
PwC measured the revenue value of the industry at $194 million in 2014, and prior to the spread of the pandemic, anticipated the industry’s growth to reach $1.8 billion by 2023. “This was before COVID-19,” reads the report. “Now, this projected figure looks understated.”
And, with the spread of COVID-19, more people may be watching in 2020 than analysts originally predicted. A PwC study found that with the cancellation of traditional in-person sporting events globally in March and the second quarter of 2020, esports and gaming popularity and viewership increased. One notable finding from the PwC study was that more than two-thirds of people under the age of 35 are playing or watching gaming content.
Locally, there are signs of increased interest in esports as well. In November, Wake Tech announced an investment in an esports arena along with the selection of Raleigh as the host of a first-of-its-kind collegiate esports national championship April 29–May 2, 2021. And in October, Lenovo unveiled a new effort, Lenovo Esports Solutions for Education.
In this context, the growth story of ReKTGlobal is one of a company that anticipated the increasing popularity of esports and gaming. The company, launched in 2017 by co-founders Amish Shah and Dave Bialek, raised a $10.8 million Series A round led by Nick Gross in 2019, then acquired Greenlit Content and Fullcube in 2019 and Fearless Media in 2020, all while expanding by opening offices in New York, L.A., Las Vegas, London, and Berlin from Charlotte.
The company also inked a partnership deal with influencer development company TalentX Entertainment in May 2020. Then, later in 2020, the company raised $35 million in debt capital from Summit Partners specifically to support strategic acquisitions.
ReKTGlobal also owns Team Rogue in the League of Legends European Championship (LEC) franchise system, along with Call of Duty League franchise the London Royal Ravens.
