Smash.gg has announced this week that they just reached a new milestone… $11 Million in funding!
Smash.gg was founded in 2015. They are THE open platform when it comes to creating and managing tournaments from 10 people to hundreds. We here at n3rdabl3 have even used them for events in the past! They focus on grassroots organizations who lack the size, funding and resources of the industry’s larger tournament groups. They’re latest round of funding knocked out their last huge milestone of $3 Million in 2016.
Nabeel Hyatt from Spark Capital is leading the investment. Hyatt joined with other American Venture Capital firms like Accel Partners, Horizon Ventures, and Lowercase Capital to fund the investment. Some of Spark Capital’s other familiar investments are organizations and companies like Tumblr, Kik, and Oculus.
Smash.gg initially started to focus on tournaments and events revolving around the Super Smash Bros. games. However, since then they have grown in size and now encompass games like Injustice and Street Fighter as well. They do still show love and support for Smash Bros. though and continue to receive support on that front.
Smash.gg lets their organizers sell merchandise on tournament storefronts which allows them to offer prize funding. They also pride themselves their fantasy services which give out prizes for their users as well.
Over recent years the Esports industry has grown exponentially and become a breeding ground for these grassroots organizations. A competing group, Battlefy, has earned some high end partnerships in recent months and will soon participate in the Geico Eleague Amateur Series. Super League Gaming, another amateur tornament platform, has since raised $15 million in investments from companies like Nickelodeon and Axiomatic.
The motivation behind these investments is that companies see this as a temporary situation. The mindset is that eventually comparable infrastructures will be required at the amateur level of esports, spawning a race to be the first in effectively serving this emerging and growing market.