Professional Documents
Culture Documents
$5.0
$ 5.0 M
M ~5x-6x Revenue Options
Investments needed
(2018 – mid 2020)
Sources: 1. corp.mail.ru
2.esportsobserver.com
3.cybersport.ru
2
Why invest in eSports?
eSports is a rapidly growing modern phenomenon
In 2018, the global eSports economy will grow to $906 million, In 2018, eSports enthusiasts* will reach 165 million,
a year-on-year growth of +38.2%, with the majority of However, with occasional viewers, the total audience will
revenue streams coming from sponsorship and advertising. amount to 380 million. The average eSport fan is much
younger than in traditional sports.
+27.4% +14.4%
GAGR Esports Occasional GAGR
2018-2021 2018-2021
enthusiasts viewers
+13.8%
+19.3% YoY 307 M
+38.2% YoY
YoY
+33.0% $ 1,650
215 M
YoY M 192 M
$ 906 160 M
$ 655 M 250 M
$ 493 165 M
M 121 M 143 M
M
Source: Global Esports Market Report 2018 *enthusiasts – people, who watch eSport at least once per month
4
Other major eSports
Top teams get the majority of their income from sponsorships sponsors
Teams Sponsors
5
Major investors are trying to get into eSports
May 2018 February 2018 December 2017 November 2017 October 2017 August 2017
Pool of investors Jerry Jones and John Goff Pool of investors Hersh Family Investment
Investors:
European investors, Jerry Jones – owner of Private equity firm
private equity firm co- the largest mobile World Wrestling
incl. Olivier Delcourt – Dallas Cowboys (a specializing in buyouts, mid
founded by NBA hall of operator in Russia and Entertainment,
president of Dijon FC professional American to late stage growth, and
famer Yao Ming CIS Beverly Hills Sports
football team) special situations.
Council and other
LoL, CS:GO, PUBG LoL, Heartstone, PUBG LoL, FIFA, CS:GO, Dota 2 Dota 2, CS:GO, Hearthstone LoL, CS:GO, Overwatch, PUBG LoL, CS:GO, Overwatch
Source: cybersport.ru
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Contracts with players are valuable assets
Zeus STYKO
Daniil Martin
Teslenko Stick
Gambit NaVi HellRaisers Mousesports
eSport $100 USD k $50 USD k
GuardiaN Crush
Ladislav Igor
Kovacs Shevchenko
NaVi FaZe Clan Pro100 Vega
Rumored: $150-200 USD k Rumored: $50-100 USD k
Squadron
Source: cybersport.ru
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Most watched games on
Top games attract huge audiences and prize money Twitch in May 2018, hours
657 M $ 2.4 M - -
#1 141 M
563 M new game - -
#3 42 M
Sources: 1. sullygnome.com 3.esportsobserver.com
2.esportsearnings.com 4.polygon.com
* total hours during Apr 2017 – May 2018
- games released in 2017
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How the industry works
How the industry works
Overview of the eSports ecosystem
10
eSports teams have three main value sources
4x
revenue
6x-8x
revenue 3 Team audience
Company
value
Text Here Text Here
2 Results/
Tournament winnings
11
Entering the eSports market with
HellRaisers
Prize Prize
Place Tournament Location
Invest in a world-class eSports team pool won
2018
2 Moche XL Esports Lisbon $50,000 $15,000
Filed an application for trademark registration 1 FCDB Cup 2017 Minsk $40,000 $20,000
6 ESL Pro League Season 6 - Europe Online $125,000 -
Have a dedicated and fast-growing fan base 2 DreamHack Tours 2017 Tours $100,000 $ 20,000
StarLadder i-League StarSeries
3-4 Kiev $300,000 $ 25,000
Season 3
2016
European Minor Championship 2017
420,000 subscribers 325,000 visits per year 2 - Atlanta Bucharest $50,000 $ 15,000
180,000 subscribers
2 DreamHack Tours 2016 Tours $50,000 $ 15,000
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Managed and coached by a highly-qualified team with 10+ years of experience in eSports
CEO
Oleksii Kucherov
▪ Professional Counter-Strike player 2004-2012
▪ Since 2015, operational and finance director of
HellRaisers
▪ As an analyst, has a deep understanding of CS:GO
Graphic artist
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Development opportunities with
HellRaisers
There are two main ways to increase HellRaisers’s value
Investment:
Relocation and new gaming house
+ new rosters $ 900k
▪ Increase revenue from sponsorship and media
rights sales Increase in revenue
from sponsorship
▪ Access to an international eSports audience
and player transfers
▪ Organizing a place for professional team training
and content creation
Investment:
4x
revenue
6x-8x
revenue
Only new rosters
(PUBG and/or Fortnite team) $ 500k Increase in team audience Increase in company
capitalization
▪ Games popularity and audience growing rapidly
▪ Large prize pools for future championships have
been announced
▪ Contracts with players are cheaper than for other
Better results at
more well-established games
tournaments
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Relocation would have the greatest effect on the company`s value
Road map
And here`s why :
Preparing of
Office staff
Preparing documents office and
eSport companies’ valuation is higher in Western Europe hiring
gaming house
and North America, than in CIS.
Access to an international eSports audience and sponsors. Total costs structure in the case of relocation and
new roster signings:
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