For years, Greg Selkoe was an ever-present figure in the Boston tech scene. He founded his own e-commerce streetwear company, Karmaloop, from his parent’s Jamaica Plain basement in 1999. Selkoe led his company for 15 years, turning it into a recognizable Boston brand that generated annual revenue of $150 million at its height.
Then Selkoe took a step back from the Boston tech world. Karmaloop filed for bankruptcy protection in 2015 after running into financial trouble. The company was then acquired by investment firm Comvest Partners and financial services firm CapX Partners, and Selkoe was replaced as CEO.
Selkoe headed west to Silicon Valley in 2016, where he met people who went on to help him rebound from Karmaloop. He founded and led several startups before entering the world of gaming. It's an industry around which, Selkoe says, “youth culture” is now organizing, as they once did for hip hop or skateboarding.
Now Selkoe is back in Boston and has founded his own gaming organization, XSET, which is focused on building up its gaming-content creators, supporting its esports teams and creating gaming-lifestyle merchandise.
“Iconic movements, iconic brands really shape generations,” Selkoe told BostInno. “Right now, gaming is where everyone lives.”
Journey back to Boston
While in California, Selkoe worked with serial entrepreneur Paul Judge to create Looklive Inc. Selkoe then went on to found Wanderset, an ecommerce company that worked with celebrities and influencers.
Through his work, he met people at FaZe Clan, a gaming and lifestyle brand that he eventually merged with and co-led for over two years. Ultimately, Selkoe said he and his partner at the helm of FaZe Clan had different ideas of where the company should focus — he favored profit, his partner was thinking about growth — so Selkoe said he exited and sold his equity.
Selkoe said he and his wife decided to raise their kids in Boston, which brought him back to the East Coast in March 2020. By that summer, he had committed fully to the gaming industry and launched XSET.
A different approach to gaming
Selkoe said he’s been a gamer his whole life, but only in recent years has he seen gaming become the center of youth culture, where Gen Z goes to find entertainment and friends — and even to support social causes.
“I look at this as sort of the evolution of a Karmaloop or other things that I’ve done in the past. Gaming is just now the center of the youth cultural movement,” Selkoe said.
The chief executive said XSET isn’t like most gaming companies, which tend to focus on supporting esports teams rather than connecting with the masses. Selkoe said the gamers who make the most money aren’t esports players, but people who livestream themselves playing games like Fortnite or Minecraft for fun, who interact with fans and share about their lives. He pointed to creators like MrBeast, who entered pop culture through gaming but who now makes videos about hanging out with his friends, planting trees for charities and interviewing interesting people.
“We really put our flag in the ground, saying we’re going to be a different kind of gaming organization. We’re going to focus on diversity, inclusion, social good. And then on the back end, we’re going to really run it like a business, pushing toward revenue and profitability,” Selkoe said.
XSET focuses on supporting content creators from diverse backgrounds personally and professionally, Selkoe said. The company’s talent list includes Puerta Rican music artist Ozuna, skateboarder Minna Stess and football player Ezekiel Elliott.
The company owns several esports teams and sells XSET merchandise, including apparel and digital items that gamers can buy for their characters in games. XSET also makes and promotes social media content for its brand and talent.
XSET has raised around $18 million so far, which Selkoe said is far less than many of its competitors. He said XSET took a more measured approach to spending and growth than these companies and is focused on proving its business model. Some of those lessons on being conservative with capital came from his time at Karmaloop, Selkoe said.
“During our sort of heady days, where the main business was crushing it, we also spent a lot of money. We were being encouraged by our venture guys like, ‘Don’t worry about the money,’” Selkoe said. “And that actually came back to bite me in the end.”
Selkoe said they’re closing a “Series A plus” venture capital round of around $5 million soon and then aim to hit profitability later this year.
Bringing a gaming brand to the public
The Boston-based company will be giving locals the chance to play some games and learn more about the brand in person this summer.
Selkoe said first up is XSET Day at Fenway Park on July 5. XSET will throw out the first pitch at the Red Sox game and host a gaming lounge in the park. The company will also offer an XSET-designed Red Sox jersey.
XSET is also partnering with the Breakaway Music Festival when it comes to Suffolk Downs in September. There will be gaming areas where DJs and musicians will join attendees in playing during the festival. The games will be projected on screens so people can watch. XSET also plans to do giveaways and merchandise drops of gaming lifestyle apparel.
The company already has a gaming lounge in Boston’s Big Night Live venue.
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