The Rise of Esports Brought to you by: What are Esports? Esports - PowerPoint PPT Presentation

The Rise of Esports Brought to you by:

What are Esports? • Esports is a form of competition using video games. Most commonly, esports take the form of organized, multiplayer video game competitions, particularly between professional players. -WikiPedia

The Buildup… • Video Games invented, competition limited to same household...some random stuff like Starcade (144 episodes) • In late 80s/90s competitions began to appear (remember the movie The Wizard 1989) • LAN based competitions become more common-internet speeds were not fast enough to allow remote competition • Counter-Strike • Star-Craft • WoW • The proliferation of widespread broadband internet (after 1997 asian financial crisis theory)allowed for the explosive growth of the industry...

ESPORTS CHAMPIONSHIP 2017

What’s happening now • Traditionally, money was made focusing on game sales to the gamers themselves • Now publishers are focusing on less direct methods • Content creators (Twitch and YouTube) • This is a cost effective marketing plan • Grows audience • Lots of Crossover happening (DeadMau5, Gordon Heyward, Post Malone) • Esports is perfect storm • Grows engaged and active communities • Prolongs lifespan of game titles • Transforms titles into true entertainment Brands • Number of viewers far exceeds number of gamers and this allows monetization opportunities.

Why it matters… we love UP and to the RIGHT! Up and To the Right Chart! • Hundreds of Millions being 12 invested 10 • Extremely valuable demographic 8 • 18-24 6 • High income earners 4 • Global audience 2 • Market is fragmented 0 Category 1 Category 2 Category 3 Category 4 • Opens door for “arbitrage” Series 1 Series 2 Series 3 opportunity

You already know some of the major players • Publishers • Electronic Arts (EA) • Activision/Blizzard (ATVI…) • Hardware • Dell (Alienware) • ASUS • ACER • Streaming • Facebook • Twitch (Amazon) • YouTube

Big Time Investor Involvement • Magic Johnson • Accel Partners • Jeff Vinik-Owner TB Lightning • Advancit Capital • Peter Guber- GS Warriors • Amplify.LA • Ted Leonsis- Wash Wizards • CAA Ventures • Robert Kraft- NE Patriots • GGV Capital • Rick Fox • CRCM Ventures • Joe Montana • Courtside • Hunter Pence • Sequoia Capital

Esports 101 • MOBAs (Multi Player Online Battle Arena) • League of Legends • Dota2 (Defense of the Ancients) • Smite • Shooters • PUBG • Call of Duty **To get a quick understanding of what is popular • Real Time Strategy and trending, visit twitch.tv and pay attention to top 25 games • StarCraft • MMO (Massive Multiplayer Online) • World Of Warcaft • Card Games • Hearthstone (basically Magic!The Gathering) • Gwent

Where I See OPPORTUNITY • Public Companies Include ATVI and Tencent (other IPOs coming) • Tier 1 Opportunities are mostly gone • This leaves Tier 2 Organizations • There are no set metrics for valuation (aka lots of arbitrage available!) • Challenges include identifying solid management and growth plan (kind of like any other business!) • Talent on team important factor, but front office is 80% • If you are looking for exposure with a non-endemic brand • Great way to get access to a young and wealthy demographic • Far cheaper than TV/Print • My personal strategy • Developing infrastructure on the business side • Very few companies have strong foothold • You may not be a Hotel expert, but you can probably name 3-5 Tech companies in that space, same for transportation, fashion, etc… there are few household names in esports! ***This content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances.***

Call me CASHFLO • Mark Flood • Discord = cashflo#2330 • IG = cashflo • Facbook.com/markflood • Twitter = @thumbtalkin • Email = cashflo@origin.gg