Team Liquid’s parent company, Axiomatic Gaming, announced the completion of a funding round which netted the company $35 million. The funding round was led by Ares Management, an investment group with minority stakes in traditional sports teams. This investment marks Ares’ first foray into esports, one that required a lot of time and due diligence.
“We spent a lot of time scoping out the esports industry, unsure of whether we were going to make an investment or not,” said Kort Schnabel, Partner and Co-Head of US Direct Lending at Ares. “When we came across the Axiomatic opportunity, it presented things we did not see in any other esports opportunity that we evaluated.”
Axiomatic has said they plan to use the new funds to look at potential acquisitions that could take the team to new verticals, while growing its fan base internationally.
Axiomatic CEO Mark Vela said that the company now has nine different revenue streams, which are part of a directional shift for the industry in which organizations are looking to diversify their businesses away from strictly competitive play and sponsorships.
(All information was provided by Forbes)