Wisdom Gaming Group, a digital marketing and media startup that focuses on esports, has closed on a $3 million Series A round of funding, the company announced Tuesday. The round was led by Minneapolis-based Excelsior Ventures Fund.
Founded in 2019, Minneapolis-based Wisdom Gaming creates a range of content for esports fans including HeroesHearth, a social network for fans of multiplayer online game Heroes of the Storm, as well as esports organization Alpine Esports and Gold Rush, a Rocket League tournament.
Another part of Wisdom Gaming's business is helping established brands advertise to younger generations who view esports as a major source of entertainment. It's inked deals to advise organizations like Jack Link's Beef Jerky and the Minnesota Twins; Jack Link's now sponsors a Dallas-based Call of Duty team, while the Minnesota Twins hosted a viewing party for the League of Legends championships, esports' biggest events.
Esports is now a massive marketing opportunity. For example, the 2019 League of Legends championships drew a total viewing audience of about 100 million people around the world. However, older companies don't always understand how to interact with the younger, more online crowd that esports draws
"Brands really need to have their hands held when they're entering this space," CEO Mike Zweigbaum said.
And esports viewership has grown considerably since the beginning of the Covid-19 pandemic, he said.
The company has 23 full-time employees and between 50 and 60 freelancers who create content. Wisdom Gaming hopes to use some of the money from the Series A to turn those freelancers into employees, Zweigbaum said. Wisdom Gaming competes with video game developers for talent and needs the money to keep pace, he said.
"Frankly, the good talent is getting sucked up right now," he said.
Wisdom Gaming plans to hold more live esports events once that becomes possible under Covid restrictions. It will also continue to build out its media department, Zweigbaum said.
"We believe the esports sector is positioned to benefit from the convergence of content and commerce by leveraging the tremendous global participation of the key millennial and Gen Z demographic groups," Excelsior Ventures co-founder Michael Hoffman said in a statement.
