While the Esposure name has only been around for about a year, it’s set to be one that’s could soon be seen across the country, as well as across the Atlantic.
The Duncanville-based “esports-entertainment-as-a-service” startup has inked a strategic partnership deal with edtech-focused Canadian investment firm LaunchLife International to franchise its business model. Terms of the deal were not disclosed.
“It was just a no brainer for them to be able to incorporate us into their portfolio, which gives us a lot more validity as an esports educational entity,” said Co-founder and CEO Danny Martin, who is also working with SMU to develop an online curriculum focused on esports management, recruitment and organization. “It allows us to actively go out and launch Esposures in different territories. Therefore, students in those particular areas that are going through our programs, they can get the same experience… as we're doing here in Duncanville.”
LaunchLife’s portfolio companies have 275 locations internationally, Martin said. As part of the partnership agreement, those companies will be able to stand up Esposure’s platform, following the same guidelines and rubrics. Esposure is planning to target locations in the U.S., Canada and the U.K. for its initial franchise locations.
“We want to be able to have a partnership with those existing franchisees… to incorporate esports. We want to be able to be there as a supporting arm for them,” Martin said. “We're literally just looking to tag along with that experience.”
The move comes as Esposure has seen success from recent changes. Initially launched as Geekletes in 2015 from Desoto as an esports gamer training company, the company rebranded last year and changed its focus to education, supporting the professional development of students interested in all aspects esports industry, from management to production and marketing.
That pivot proved successful for Esposure. Martin said the company has seen more than $3 million in revenue over the past six months. It’s also grown its headcount to around 30 people, up from about 18 in May. And Martin said the company is looking to onboard at least 15 new employees in areas like graphic design, operations, videography, photography, and production in the six months.
The company’s currently in the process of moving its operations to the 8,000-square-foot Duncanville location, which is set to host a ribbon cutting on Oct. 15, where it hosts four- and nine-week immersive programs. Martin said Esposure serves between 25 and 50 students per month and has been running its programs for about six months.
“One of the coolest things about our programs is that it allows us to leverage immersive experiences… that allow students to understand all aspects of esports from management to technology, production, marketing, even the competition,” Martin said. “It provides the opportunity to mimic what it would be to represent an esports organization or (work in) any other industry.”
He added that with the validation and reach provided by the deal with LaunchLife, Esposure is planning to launch its first funding round in the “very near” future, although he declined to say how much the company is looking to raise.
“This partnership solidifies us as a true educational entity for esports, with actual partners that are validated within the space for a number of years,” Martin said. “We're going to leverage that to be able to get supporters from an investment perspective.”
Martin said the educational aspect of esports is growing, as schools implement their own programs and professional organizations like locals Envy Gaming and Complexity Gaming looks to add to their talent pipeline and monetize content through streams.
According to a Forbes report, of the top five most valuable esports companies in 2020, money from competitive play made up an average of about 53% of their revenues. According to Insider Intelligence, the esports industry as a whole is expected to surpass $1 billion in revenue, a number that could potentially nearly double next year.
“Right now, (esports organizations) recognize that it’s much more than just competition. They're recognizing that they have to get into the communities, they have to engage with the schools, they have to be able to offer programs that support the development of gamers, while at the same time the development of support for the individual who's going to be representing their organization in the future,” Martin said. “We really want to showcase that this is a true opportunity where individuals can make capital doing what they love or doing something that they're very good at.”
A previous version of this article incorrectly stated the number of franchise locations of LaunchLife International's portfolio companies.
