I was called to lecture before Students about eSports. It’s an entrepreneurship program of the university where they’re going to spend the next few months of their lives trying to solve a real problem and create a startup company.
While I was working on the PP, I realized that there are some points raised that worth sharing with the world. I'd love to see the global eSports community deepen the discussion about the challenges the market is going through now days.
2. Or Preiss
I’m 25. I’m passionate about growth and gaming. Founded Zengaming 2 years ago.
We reached 2.5M users and raised $3.8M. I’m now struggling with the development of
the company’s culture and refining the value we offer to the world.
1
3. Disclaimer
There is no “right” or “wrong”. The materials in this lecture represents the best knowledge (meta knowledge)
we gained so far. This is our perspective and I recommend all of you to doubt and question everything.
Always..
4. What am I going to cover
A eSports background
B Market structure
C Market growth
D The opportunity
E Some philosophy
F GLHF
10. MAIN CATEGORIES ARE
MOBA FPS CARDS
eSports background
Multiplayer online
battle arena
First person
shooter
11. Dota tournament in Seattle this year
$24M prize pool, 5M CC peak 16M, unique viewers
eSports background
12. More people watched League Of Legends
than the NBA finals
eSports background
13. - Media rights in 2017 sold to TV for
almost $0.3B
- Huge clubs opened an eSports team
- Top players reported $2.5M annually
revenues from prize pool only
- Including Israeli Dota player - Tal
Aizik in the top 20 with $1M
eSports background
14. Today: Pro teams and players with a huge budget,
salaries, gaming house and high contracts
eSports background
15. eSports background
eSports history
1980 - First ever local
eSports competition of
Atari
1997 - First worldwide
competition with 2000
participants and prize
pool of $15K
2000 - Going global with
organizations like WCG and
MLG running worldwide
tournaments with 800K
participants from 78 countries
and prize pool of $170K
2011 - Twitch go live
allowing streaming
(Future - YT gaming)
Today - 250M eSports
enthusiasts and $0.7B
total revenues
16. eSports grew from the bottom up
Started from local communities of gamers
eSports background
26. The opportunity
Why does it grow so fast?
a. It’s still decentralized
Like in every emerging market - The consciousness evolves first, then the
manifestation. Things like business models, pricing and structure shaped as we speak
27. The opportunity
Why does it grow so fast?
B. More people are attracted to gaming than ever before
28. The opportunity
The challenges of the market
a. A major percent of the money still flows to game publishers
No one owns “Football” Owned by RIOT games
29. Implies on a broken market
Teams Tournaments Publishers 3rd party Viewership News
The opportunity
Apx 90%
Of the money
30. The opportunity
The challenges of the market
B. Lack of stability
Raises questions like:
If RIot wants to grow and release a new
game that gains hype, what does it mean
for a pro player or for a startup relying on
League of Legends?
The risk holds the market back
40. ZENGAMING’s story
Our mission:
1. To fund the emerging eSport teams class
2. Create a company where teammates build fulfilling lives
41. Why?
● We believe GAMERS should be able to make a
living doing what they love.
42. Increase your
fan base
The endless loop holding back gamers
Participate in top
leagues and
tournaments
Find sponsors to
fund the team
It’s damn hard to reach those leagues and
tournaments with a low budget (would
say 1% success rate)
It’s also nearly impossible to find a sponsor
without having a massive fan base
Cultivating a massive fanbase doesn’t make
sense without participating in big events