Two Chinese eSports organizations announce A-round financing

Yesterday (September 26), two Chinese eSports organizations, QG eSports club and Fighting Esports Group were both reported to have completed their A-round financing with the transaction amount of the two rounds both being close to CNY100m. 

The A-round financing of QG eSports club was led by the Chinese venture capital company, Toutoushidao Investment Fund which focuses on the culture and entertainment industry and was set up in 2015 by Chinese financial writer and entrepreneur Wu Xiaobo and Managing Partner of Matrix Partners China, Cao Guoxiong. 

QG is one of the top eSports clubs in China and is based in Shanghai. Established in 2015, the club has teams in different games, such as Paladins (Qiang Huo Youxia), Overwatch, Wangzhe Rongyao and PlayerUnknown’s Battlegrounds. They have also won  quarterly championships over the years. 

The club is actively looking at advancing their own IP by developing by-products and collaborating with the music and entertainment sectors, with the aim of having better commercial growth and a better use of their brand value. After completing this round of financing, they are reportedly going to integrate culture and entertainment elements into their eSports IP, create their brand and IP images and work with sporting goods brands to produce co-branded products. 

The financing of Fighting Esports Group was made by China Jianteng Sports Industry Fund (lead investor), SAIF Partners and Sea of Stars Capital (S Capital). China Jianteng Sports Industry fund was founded by Chinese Culture Group and Sequoia China in 2017. 

Online media company Sports Money reports that FEG was recently set up two months ago in July, 2018. Some websites describe it as an eSports club but the company’s main business is not very clear to the outside world yet. The current understanding of their business is that they focus on mobile eSports and that they are also a strategic partner of Tencent in mobile eSports globally. Currently the company is co-organizing the King Pro League’s new league in South Korea. 

Reference: bbtnews, QQ  

Proofread by Raymond Fitzpatrick