Team Liquid Parent Company Axiomatic Raises $35 Million Amid Esports Funding Wave

Axiomatic Gaming, the parent company of esports organization Team Liquid, has raised $35 Million in funding. This is the latest example of how big money has been flowing into the sector.

Ares Management led the funding round that valued Team Liquid at $415million. This investment group also owns minority stakes of traditional sports teams such as McLaren Racing or Atletico de Madrid and provided a senior secured line of credit to the San Diego Padres. Last June, the company disclosed that it had invested more than $1B in sports, media, and entertainment investments.

This is Ares’ first investment in esports. Over the past seven months, it follows other deals in this space, including a $60million round for 100 Thieves and a 35 million round for Misfits Gaming Group. ReKTGlobal, the owner of Rogue and London Royal Ravens esports teams, was bought by Infinite Reality for $470million in stock.

Kort Schnabel, co-head of U.S. Direct Lending at Ares and partner, says that they spent a lot of time looking into the esports market, not knowing if we would invest. He was drawn to Team Liquid’s success in competitions since it was founded as a Starcraft Clan in 2000. The Axiomatic opportunity presented us with things that we didn’t see in any other esports opportunity we looked at.

Revolution Growth, a Washington D.C.-based venture fund, is also part of the round. Hiro Capital, which specializes in gaming and esports investments, is also among the other investors.

Hungate states that the organization will use its new funds to explore potential acquisitions and grow its fan base worldwide. Brazil is the fastest-growing market for the team. It already funds Valorant and Rainbow Six teams and is now about to open a third training facility.

Mark Vela, CEO of Axiomatic, stated that the company now has nine revenue streams. In 2021, top-line revenue increased by 50%. He expected this to continue in 2019. These changes are part of an industry-wide directional shift in which companies seek to diversify away from competitive play and the sponsorships it attracts.

Peter Guber founded Axiomatic. He is also part of the proprietorship team behind the Golden State Warriors and Los Angeles Dodgers. Ted Leonsis owns the Washington Wizards and Capitals through Monumental Sports & Entertainment. Axiomatic counts as its investors Magic Johnson, Michael Jordan, and Tony Robbins, a motivational speaker. In 2016, it acquired a management stake in Team Liquid.

The group hopes to replicate the loyalty shown by major sports clubs like the English soccer team Manchester United. Even though there are not many hyper-local, multigenerational roots in any given location. Gamers are more likely to be attached to a single game or player than to any one organization in esports. Axiomatic believes Team Liquid has the potential to create a lot of value around its fans and teams without having to reinvent itself through the metaverse or other non-gaming products as some other esports groups have done.

Hungate says, “We are a competitive esports group; we’re no lifestyle brand.” Hungate says that while other esports clubs may be perceived as exclusive, they are more inclusive.

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Adam Collins
Adam writes about technology, business and economics. With master's degree in Economics, he's presented six papers in international conferences. As a solivagant in the constant state of fernweh, curiosity is the main weapon in his arsenal.

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