When we talk about esports, we are talking about a subsegment of the gaming industry, which was worth $152bn in 2019. And this is where it gets interesting...
Although as investors we don’t target this industry directly, we do invest in deep tech startups that do target this sector. Few examples that we have seen:
. Player performance - uses computer vision and AI to analyse performance of players and give improvement tips. Startups: Visor, Gosu.ai, Senpai.gg, Bayes Holdings, Mobalytics, Emotai
. Cybersecurity solutions - the games industry is one of the worst offenders for security rankings in mobile apps. Leaks are also frequent even across major players such as Nintendo, Sony, MSFT/AMD, Epic. Startups: Guardsquare, NowSecure
. Hyper personalization of games - In Fortnite, over 70% of revenues are driven by personalization of your character. These startups provide tools for game developers and gamers to personalize their experience. Startups: Affectiva, Didimo
. Content creation - esports pose a different challenge and enable a different immersion from a viewer and engagement standpoint (with matches that can last for several hours). These companies address content creation, distribution and the way we see esports. Startups: Theta.tv, Replai
. Content monetization - While user views/subscribers remain as the main source of income for streamers, the truth is that YouTube, Twitch, Facebook are focusing on the 1% of streamers with a huge number of followers. All the others need to have alternative ways to monetize content. Startups: Maestro, FanAI, Streamloots