MLG raises $11.3m in additional funding - Page 2

On March 14 2012 03:49 crms wrote:
*paging business experts*

So.. with seamingly all of their revenue coming from VC, is this good? I know many companies start up with VC and eventually get a sustainable model so they can stand on their feet, the VC's get a nice ROI and everyone walks into the sunset.

However, MLG has been around 10+ years (correct?) and it seems like they still can't generate enough internal revenue (is this the correct term?) to be sustainable. Eventually VC dries up, right? What is so different from the dreaded 'sponsorship model' and the 'VC model'? It seems about the same to a laymen like me.

I think some of the big risks MLG has taken lately like a high priced PPV is perhaps due to itchy VC's wanting to see some type of return or proof that MLG can be profitable?

What kind of longevity does MLG have if all of their funding is coming from VCs? The fact that they 'sold' another 11.3 (want 13) million in VC a good sign? Good because investors still care about MLG and think it's worth while? Or a bad sign, that MLG still can't be profitable on their own and still need to reach out to VCs?

Thanks in advance if any expert can answer my queries.

<3

On March 14 2012 03:54 JOJOsc2news wrote:
How exactly did they accumulate this money?

Not sure about the link everyone sees to PPV.

On March 14 2012 03:38 carloselcoco wrote:
What is AMBI LLC?
Were they the investors?

On March 14 2012 03:54 JOJOsc2news wrote:
How exactly did they accumulate this money?

Not sure about the link everyone sees to PPV.

On March 14 2012 03:55 battyone wrote:


They offered shares of MLG or options to purchase shares at a later date, while the company is not publically traded they are able to offer ownership in exchange for money. It's all private/venture capital investment. This is not a statement of revenue, but it is interesting to note they're in the 5-25million/year catagory.

On March 14 2012 03:56 Mohdoo wrote:


PPV being a huge success showed that MLG as an organization has what it takes to become a successful business. Sundance is the first one to be able to bring this much growth to e-sports, and people are noticing.

But of course people on Reddit will say he's just filling his pockets lolol

On March 14 2012 03:54 JOJOsc2news wrote:
Raised money for MLG and their eSports products.
Good for them.

Not sure about the link everyone sees to PPV.

On March 14 2012 03:59 JOJOsc2news wrote:


The PPV model doesn't bring growth to eSports. People who weren't into the eSports scene/SC2 scene are not going to join the community over paying $20 for something they don't necessarily appreciate yet. They get involved through events that they can access for free. Events that raise their interest and passion about eSports. That's how you get growth.

On March 14 2012 03:59 JOJOsc2news wrote:


The PPV model doesn't bring growth to eSports. People who weren't into the eSports scene/SC2 scene are not going to join the community over paying $20 for something they don't necessarily appreciate yet. They get involved through events that they can access for free. Events that raise their interest and passion about eSports. That's how you get growth.

On March 14 2012 03:53 aristarchus wrote:

If they were doing so well that they didn't want VC anymore (because they didn't want to lose the partial ownership) then that would definitely be substantially better. But, given that they're not making money on their own yet, this is very good news. It means they have the money to last a while longer. It also means that these VC experts that invested in them believe that they will end up profitable enough to make it worth the money (and they've presumably gotten to see all their books and everything, so that's a pretty good sign for those of us who don't know enough to have our own opinion).

On March 14 2012 04:01 battyone wrote:


As a counterpoint this encourages people to get friends over/share the expense. A lot more people out at barcrafts, or being with friends is not a bad thing. If you're paying $20 to watch a weekend, you're gonna call some buddies over, have some beers and maybe just maybe more people will get into it. There is a balance between free and PPV that can be acheived (look @ WWF/WWE or UFC for example), and I don't see the PPV model as determential. With that being said this is a bit derailing to the thread, maybe you can get someone from MLG on your show so we can discuss further

On March 14 2012 04:02 Mohdoo wrote:


PPV was profitable. A profiting industry that doesn't rely solely on sponsors is good for said industry. Everyone involved with e-sports at a high level, such as EG management have all said that having financial independence will do tremendous things for the scene in general. Being so reliant on sponsorship makes the scene really fickle financially. A company like MLG showing that they can keep themselves afloat shows investors that someone competent is running the gig and that they can make money for investors. How can you say that financial independence isn't empowering to the scene?