Cloud9 nets major investment before Overwatch League

While Cloud9 has remained a massive player when it comes to branding in esports, the organization had notably fallen behind when it came to investment from notable sources. Despite the organization's deals with Twitch, many surmised that teams with notable sports and venture capital investment would be a step ahead—at least financially. However, Cloud9's latest dealings have moved them to the forefront of the esports world yet again.

According to a report by Forbes, the organization received investment from:

Daniel Fiden, FunPlus Ventures
Hunter Pence, San Francisco Giants outfielder
Alexis Ohanian, Reddit co-founder
Joe Montana, retired Hall of Fame quarterback
Andrew Bogut, former NBA center
Chamath Palihapitiya, Golden State Warriors co-owner
Antonio Gracias and Kimbal Musk, Tesla board directors
Bill Lee, Tesla investor
Rick Thompson, Signia Venture Partners co-founder
Ken Howery and Brian Singerman, Founders Fund co-founder and partner
Min Kim and Rob Pardo, Bonfire Studios co-founders
Josh Yguado, Jam City co-founder
Tod Boehly, LA Dodgers co-owner and Eldridge Industries founder
United Talent Agency

As you can see, there are quite a few names on the list, many of which are recognizable to esports and non-esports fans alike. The move comes just in time, as Cloud9 are a very notable brand in esports itself and are likely to push for a spot in the upcoming Overwatch League. While the reported $2-15 million are a hefty price to pay, these investors are certainly able to fund that kind of venture—if they deem it as a worthy investment, of course.

The numerous reports on the investment note that Cloud9 received "millions," but did not clarify any farther. The Etienne family (Jack and Paullie) notably retain the controlling share of Cloud9, and the investors will likely trust the pair's judgement, especially given their history of success in numerous games.

With most of Cloud9 returning to America, the team has not announced its next appearance. They will not play in the Overwatch PIT Championship, but there will certainly be opportunities to compete down the road with the Carbon Series wrapping up.

I, for one, look forward to potentially labelling this team as the "San Francisco Cloud Niners" in Joe Montana's honor.

I'm not aware of a Twitch investment into C9. Where can I read up on that?

When it comes to Series A (which this funding round is), 3 million is in the lower end but still very much on par with what's usually seen (higher end being in the $12-$15M mark). Typically, this wouldn't be surprising given that esports right now falls under the category huge risk, high potential reward. Sure there's a potential $1B market but it addresses a demographic that has very low purchasing power right now, as well as very little incentive to spend. It will be hard, but once the wallets unlock, we'll be in for a wild ride. Before then, over-investing in a Series A round sounds like the big mistake to me, not the other way around.