Tournament tool developer BoomTV announced that it has raised a $10M USD Series financing round led by BITKRAFT Esports Ventures. In total, seven investors participated in the investment, including PTW, Tandem, and Crosscut Ventures.
BoomTV was founded in 2015 with the goal of developing a 3D-focused esports streaming technology. Since then, the business model was iterated to its current state, building products which “democratize high-quality production of esports events and help the underserved community of civic groups, youth sports organizations, and school clubs organize and share competitions with their audiences.”
In an interview with The Esports Observer, Sumit Gupta, BoomTV CEO and co-founder explained that from its early days, the company built features around influencers and communities. He continued, “…that aspect hasn’t changed. It’s just that we have moved away from what was appealing to the influencer in terms of introducing some new tech for the community to have essentially a better experience, to another form of attack for the communities to have a better experience. It’s very similar in the objectives, but the modus operandi has changed.
“About 18 months back, we started an influencers ProAm series called Code Red [featuring personalities such as Tyler ‘Ninja’ Blevins Jr. and Herschel ‘Dr DisRespect’ Beahm IV],” Gupta said. Despite the shared name, BoomTV’s Code Red series is not related in any way to British esports talent agency Code Red Esports. Since the format’s inception, the company has organized more than 30 events with a cumulated prize pool of $2.9M.
BoomTV’s tournament organization platform was born when the company received several licensing requests from various organizers to create Code Red-like events. Gupta further recounted that “as we were working on that, we were building the software to run these events, which eventually became the feature-rich platform we rolled out to a wider set of communities such as colleges, schools, and local organizations a few months ago.”
According to Gupta, the company plans to apply an aggressive investment strategy to its two main products, the Code Red series and its tournament organization platform. Going forward, Code Red will increase prize pools, establish long-term relationships with influencers, and invest in original esports programming. For the platform, BoomTV plans to launch new gaming-specific features to enable gaming organizations to produce and broadcast competitions like Code Red.
“We’re lucky to have some of the biggest sponsors in gaming already supporting our events. Although we’re not profitable, it’s a sizable business,” Gupta said of BoomTV’s business strategy. “We want to invest aggressively in all sorts of areas that eventually will lead to more monetization.”
Addressing the current COVID-19 situation, Gupta said that his company is taking the opportunity to help communities retain their membership and help them find something to do as gaming is prevalent to connect people at home.
Last year, BoomTV acquired collegiate esports organizer American Video Game League (AVGL) to expand beyond influencer communities.
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