Website Closers® presents a Gaming Tournament Platform in the eSports vertical driving increasingly higher B2B and DTC sales for its custom-built, proprietary platform offering a host of appealing games within the fast-growing gaming industry. The company has become even more popular for providing customers with the easiest platform in this industry to use.
The company is seeking an additional $3 million in funding through an equity-based investment opportunity. The funding would be used to help build out additional features on the platform and to launch an ambitious growth strategy. Or if you prefer to acquire this proprietary platform, it could be yours for $12,000,000.
For a buyer or an investor, there are plenty of compelling reasons to consider either option. This innovative company, with the most complaint tournament platform in the industry, has a sharply rising number of new users being added each month.
Their tournament platform has three different revenue models, including subscriptions to play on the platform, ads sold on the platform, and service fees. Users love what they’re getting: the company boasts a 99.9% retention rate. This is a fully trademarked platform that appeals to other businesses eager to advertise on it. The agency’s average B2B contract value is $15,000.
A trademarked brand, their cutting-edge technology is helping to redefine the gaming industry, which is now growing at a phenomenal rate. The projected revenue in the global Online Games market is $27.97 billion in 2024, with an annual growth rate of 5.20% and an anticipated market value of $32.56 billion by 2027. The online gaming market is expected to enjoy substantial growth as interactive entertainment systems have become enormously popular across the globe.
Business Broker Takeaway
Our analysis of this business revealed several key value propositions for a buyer looking for an online company with high customer retention rates, strong recurring revenues, and multiple scale opportunities. We anticipate buyers will recognize that value for 3 important reasons:
- Loyal Customers. This company’s customer retention rate is nearly 100%, as both B2B and DTC customers have stayed with them long-term. Much credit for that goes to the company’s cutting-edge platform, the most compliant and user-friendly tournament platform on the market, which attracts both veteran gamers and newcomers alike. The company has put a solid focus on building a community on its platform, and it is working phenomenally.
- Innovation. The company’s platform has several notable milestones. Not only is the platform easy for anyone to use, but it has a robust method for successfully matching players and is laser-focused on building communities that connect like-minded players. The company benefits from an experienced team that understands the gaming industry and can quickly adapt to emerging trends and technologies that make the platform even more competitive.
- Growth Opportunities. This company has a growth strategy waiting to be implemented if an investor puts $3 million into the business. It includes investing in digital marketing tools that promote user acquisitions, continuously improving the platform so it offers far more than what competitors have, and collaborating with game developers, eSports organizations, and content creators to diversify what they offer. Most importantly, it includes maintaining the company’s phenomenally successful user-centric approach while exploring methods for diversifying the company’s methods for generating revenue.
The brand is also an innovator in subscription-based monetization, having created the technology to appeal to a huge audience while promoting social connectivity in gaming.
This has been a winning formula for the company, and considering that this brand is easily scalable, the new owner will take over a business that appeals to advertisers and brand sponsors in all verticals, and international players who range in age from 13 to 39.
That’s a smart recipe for strong recurring revenues and a healthy rise in profits in the future.
The Company
This company has been enormously successful by empowering avid gamers, and providing them with a platform that hosts various games and tournaments and the ability to win cash and prizes. A secure and user-friendly platform, the prizes are distributed based on each player’s skills and in-game performance. This has enabled them to attract gamers of all eligible ages and skill levels to compete against one another.
This brand’s meteoric rise was accomplished in just three years. The company was founded by friends and colleagues in the IT space who were avid gamers. They recognized that existing gaming platforms tended to target professional tournament players and saw an opening to appeal to more casual, less experienced, and more everyday gamers. Offering gamers of all experience levels an opportunity to get on their platform for as little as a $1 entry fee, with access to mega tournaments, quickly validated their original view that everyday gamers needed and desired an access point.
Within a short period, this brand was seamlessly connecting players to a diverse number of gaming opportunities and growing in leaps and bounds. With the company charging $9 per active player each month, as the number of gamers rises, so do their profits.
Because of the enormous popularity of gaming and gaming tournaments, their sales are not impacted by seasonal factors. Most of their contracts can be billed by tournament or monthly, and those contracts typically extend for 12 months or longer. Advertising, tournament management, and fees for player tournaments are top revenue generators.
Marketing & Operations
The company has an experienced team handling daily operations, including a full-time chief executive officer, chief marketing officer, QA and risk manager, product owner, and developer. The current owners focus mainly on sales, and on maintaining the development requirements needed to meet current business contracts.
The team also focuses on the creation of new customer tournaments, providing game support for ongoing tournaments, and building new feature enhancements for the platform.
The buyer of this company can also take full advantage of their strong digital marketing campaign that has continuously driven sales higher. That includes both social media posts and PPC ads that promote first-time user tournaments, free tournaments, and large prize giveaways.
Additional tools include an email database with 12,000+ subscribers used for regular email marketing campaigns and an SEO program that fully optimizes their website. These tools are bringing 17,330+ unique visitors to the site each month.
As the gaming experience gets more sophisticated and gamers develop higher expectations, this brand’s proprietary platform has brought more inexperienced and first-time players on board, effortlessly connected players across the globe, provided engaging gaming opportunities to an expanding customer base and fostered a unique community that stays onboard long term.
The investment of $3 million into this business will enable the company to grow much more rapidly and become a dominant leader in the gaming industry. Considering the massive growth of the global gaming industry, that’s a safe bet for success.
