Team Liquid valued at $415M following $35M investment
The parent company of international esports organization Team Liquid, aXiomatic, has raised $35M in investment.
The funding: The investment will strengthen the company's "long-term sustainability."
- The raise was led by funds managed by Ares Management and featured contributions from Revolution Growth, Hiro Capital, and existing investors.
- According to a press release, this investment round raises Team Liquid's valuation to an estimated $415M. In 2020, Forbes valued Team Liquid at $310M — ranked behind only Cloud9 at $350M and TSM FTX at $410M.
- The funding will go towards potential mergers and acquisitions, improvements to its fan engagement platform Liquid+, partnership activations, and further expansion into Brazil.
A wider lens: Sustainability is paramount for organizations as the esports economy starts to correct itself after a lengthy period of booming valuations and estimations.
- In 2022 alone, a number of prominent esports orgs have reported major losses for the previous financial year.
- David Beckham's organization Guild lost $11.8M, Astralis lost $5.2M, Luminosity parent company Enthusiast Gaming lost $41.6M, MAD Lions parent company OverActive Media lost $15.4M, Complexity Gaming parent company Gamesquare lost $20.9M, and FaZe Clan lost $36.8M.
- Team Liquid has a significant presence in both the U.S. and the Netherlands and is evidently keen on establishing itself in Brazil. Not only is it costly to operate major facilities and mobilize fan bases across two nations as is, but the org will also likely have to hire more employees to aid in its continued expansion.