China e-sports business VSPN raises $100m
VSPN, a China-based start-up that claims to be the world’s largest e-sports provider, has raised nearly $100 million in Series B funding led by Tencent Holdings.
Tiantu Capital, SIG, and domestic short video giant Kuaishou Technology also participated. The capital will be used to support business development, including the growth of existing and new products, and expansion into overseas markets.
Founded in 2016 and also known as Versus Programming Network, Shanghai-based VSPN organizes e-sports tournaments and creates related video content. The company also runs a TV-based e-sports operation and a string of offline venues as part of wider efforts to monetize its offering.
VSPN claims to have partnered with more than 70% of e-sports tournament brands in China, organizing over 10,000 competitions and generating 12,000 hours of original content. It has over 1,000 employees. The company has own-brand venues in Chengdu, Xi’an, and Shanghai and added a Seoul location in May, its first overseas.
“VSPN’s long-term vision and leading position in e-sports production is vital for Tencent to upgrade and optimize the layout in the e-sports industry,” said Mars Hou, a general manager at Tencent Esports. The internet giant plans on expanding its roster of e-sports competitions in conjunction with VSPN.
Dino Ying, CEO of VSPN, noted that Shanghai’s move to establish itself as a global hub for e-sports had prompted similar industry development policies in Beijing, Chengdu, and Xi’an. He wants to leverage these initiatives to build an e-sports research institute and an e-sports culture park.
Kuaishou has also formed a strategic partnership with VSPN and will help distribute content via its platform.
Videogaming globally has outgrown entertainment and media to become a sector unto itself, with new angles for exposure multiplying rapidly. The industry is expected to be worth more than $300 billion by 2025, according to GlobalData, and most of that growth will be in Asia Pacific. At present, the region accounts for 52% of the global market; China leads the way with annual revenues of around $35 billion.
VSPN closed its Series A round led by Focus Media in 2016, according to a statement. China Jiansheng Sports Industry Fund, Guangdian Capital and Averest Capital also took part.
Lighthouse Capital served as the exclusive financial advisor for the latest round.
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