Fantasy Startup ONE Raises $4M in Funding

Esports One, a company innovating in the esports space through a fantasy gaming approach, has announced a further $4 million in investment.

I previously covered Esports One in April, at which time co-founder and COO Sharon Winter characterized it as the first comprehensive “fantasy platform” dedicated to esports. This platform enables users to analyze players, assemble fantasy teams, and view matches, initially concentrating on the North American and European League of Legends circuits.

The Esports One team explains that developing this platform involved constructing a suite of data and analytical tools, alongside the implementation of computer vision technology. This technology monitors in-game events and updates player statistics independently of publisher-provided APIs.

The startup reports a user base increase exceeding 25% each month. It potentially also benefited from the temporary suspension of traditional sports earlier this year. CEO and co-founder Matt Gunnin recently shared with me his belief that fantasy gaming can broaden the appeal of video games – he recounted an instance of an Esports One user introducing his sister to League of Legends through the platform.

“I often draw a comparison to growing up and watching a baseball game with my father, where he would explain everything unfolding,” Gunnin explained. “Now, the dynamic is reversed – it’s often children explaining the game to their parents.”

He suggested that many parents “will likely never engage with a mouse and keyboard to play League of Legends,” but they might enjoy the fantasy version. “This serves as an accessible starting point… allowing us to cater to both dedicated gamers who have been playing and watching League of Legends for years, and individuals completely unfamiliar with the game.”

This latest funding round was spearheaded by XSeed Capital, Eniac Ventures, and Chestnut Street Ventures, bringing Esports One’s total funding to $7.3 million. The company has also recently established a partnership with lifestyle organization ESL Gaming.

Gunnin stated that these funds will facilitate the expansion of their Bytes virtual currency, used by players for contest entry and customization purchases. Starting next year, players will have the option to purchase Bytes with actual currency. Furthermore, the company is developing dedicated iOS and Android applications (Esports One is currently available through desktop and mobile web browsers).

Gunnin and his team also intend to create fantasy competitions for Rainbow Six: Siege, Rocket League, Valorant and Fortnite.

“As a relatively new entrant into esports, we’ve been impressed by the dedication and resilience of Matt, Sharon, and the entire Esports One team as they strive to become a well-known brand,” commented XSeed’s Damon Cronkey in a statement. “I’m pleased to collaborate with a company poised to introduce fresh perspectives and features to a dynamic industry. We anticipate observing Esports One’s progress throughout 2021.”