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.

#1
3 Frags +

this is huge

this is huge
#2
5 Frags +

People always forget how fast esports as an industry is growing. It's absolutely huge; almost over $1 billion dollar industry across the board and increasing every year. The debate as to whether the city spots are worth the price point is up for debate but I think its completely understandable seeing general investments pour in.

People always forget how fast esports as an industry is growing. It's absolutely huge; almost over $1 billion dollar industry across the board and increasing every year. The debate as to whether the city spots are worth the price point is up for debate but I think its completely understandable seeing general investments pour in.
#3
3 Frags +
I, for one, look forward to potentially labelling this team as the "San Francisco Cloud Niners" in Joe Montana's honor.

Well, according to the Nate Nanzer, they'll be the San Francisco Venom Mines

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

Well, according to the Nate Nanzer, they'll be the San Francisco Venom Mines
#4
0 Frags +

Will see does the rumours match from few different things or not. If they match then i dont know what will happen to C9.

Will see does the rumours match from few different things or not. If they match then i dont know what will happen to C9.
#5
-12 Frags +

the bigger the investment from NBA,NFL the bigger the corruption and bigger chance for match fixing cuz of betting odds .
just see the SUPERBOWL game :D

the bigger the investment from NBA,NFL the bigger the corruption and bigger chance for match fixing cuz of betting odds .
just see the SUPERBOWL game :D
#6
4 Frags +
gioventuthe bigger the investment from NBA,NFL the bigger the corruption and bigger chance for match fixing cuz of betting odds .
just see the SUPERBOWL game :D

Kid yourself

[quote=gioventu]the bigger the investment from NBA,NFL the bigger the corruption and bigger chance for match fixing cuz of betting odds .
just see the SUPERBOWL game :D[/quote]
Kid yourself
#7
-7 Frags +
pendagioventuthe bigger the investment from NBA,NFL the bigger the corruption and bigger chance for match fixing cuz of betting odds .
just see the SUPERBOWL game :D
Kid yourself

truth hurts i know .

[quote=penda][quote=gioventu]the bigger the investment from NBA,NFL the bigger the corruption and bigger chance for match fixing cuz of betting odds .
just see the SUPERBOWL game :D[/quote]
Kid yourself[/quote]

truth hurts i know .
#8
5 Frags +
I, for one, look forward to potentially labelling this team as the "San Francisco Cloud Niners" in Joe Montana's honor.

someone needs to pitch this to c9 this is genius

[quote]I, for one, look forward to potentially labelling this team as the "San Francisco Cloud Niners" in Joe Montana's honor.[/quote]
someone needs to pitch this to c9 this is genius
#9
2 Frags +
gioventupendagioventuthe bigger the investment from NBA,NFL the bigger the corruption and bigger chance for match fixing cuz of betting odds .
just see the SUPERBOWL game :D
Kid yourself

truth hurts i know .

Truth based on 0 facts

[quote=gioventu][quote=penda][quote=gioventu]the bigger the investment from NBA,NFL the bigger the corruption and bigger chance for match fixing cuz of betting odds .
just see the SUPERBOWL game :D[/quote]
Kid yourself[/quote]

truth hurts i know .[/quote]
Truth based on 0 facts
#10
1 Frags +

Joe Montana ...?

Joe Montana ...?
#11
3 Frags +
SKYTRiXSHAWill see does the rumours match from few different things or not. If they match then i dont know what will happen to C9.

I think they are true.

[quote=SKYTRiXSHA]Will see does the rumours match from few different things or not. If they match then i dont know what will happen to C9.[/quote]
I think they are true.
#12
1 Frags +
harshaSKYTRiXSHAWill see does the rumours match from few different things or not. If they match then i dont know what will happen to C9.I think they are true.

what is this referring to? please translate for us non-illuminati

[quote=harsha][quote=SKYTRiXSHA]Will see does the rumours match from few different things or not. If they match then i dont know what will happen to C9.[/quote]
I think they are true.[/quote]
what is this referring to? please translate for us non-illuminati
#13
-2 Frags +
HarshaHunter Pence, San Francisco Giants outfielder

Now we can say, Cloud9 is backed by the United States VP :D

(joke pls no downfrag)

[quote=Harsha]Hunter Pence, San Francisco Giants outfielder[/quote]

Now we can say, Cloud9 is backed by the United States VP :D

(joke pls no downfrag)
#14
2 Frags +
tabfanharshaSKYTRiXSHAWill see does the rumours match from few different things or not. If they match then i dont know what will happen to C9.I think they are true.what is this referring to? please translate for us non-illuminati

Don't like reporting on rumors without proof, sorry for baiting :(

[quote=tabfan][quote=harsha][quote=SKYTRiXSHA]Will see does the rumours match from few different things or not. If they match then i dont know what will happen to C9.[/quote]
I think they are true.[/quote]
what is this referring to? please translate for us non-illuminati[/quote]
Don't like reporting on rumors without proof, sorry for baiting :(
#15
2 Frags +
harshaDon't like reporting on rumors without proof, sorry for baiting :(

Do the right thing and make a thread about it on an alt. That doesn't count as reporting, right?

[quote=harsha]Don't like reporting on rumors without proof, sorry for baiting :([/quote]
Do the right thing and make a thread about it on an alt. That doesn't count as reporting, right?
#16
1 Frags +
gioventupendagioventuthe bigger the investment from NBA,NFL the bigger the corruption and bigger chance for match fixing cuz of betting odds .
just see the SUPERBOWL game :D
Kid yourself

truth hurts i know .

No that's just retarded.

[quote=gioventu][quote=penda][quote=gioventu]the bigger the investment from NBA,NFL the bigger the corruption and bigger chance for match fixing cuz of betting odds .
just see the SUPERBOWL game :D[/quote]
Kid yourself[/quote]

truth hurts i know .[/quote]

No that's just retarded.
#17
1 Frags +

the investment amount was 3 million (2.75 or something around there i forgot, when this dropped i saw the doc right away).

the investment amount was 3 million (2.75 or something around there i forgot, when this dropped i saw the doc right away).
#18
1 Frags +
One_Punch_Manthe investment amount was 3 million (2.75 or something around there i forgot, when this dropped i saw the doc right away).

Seems surprisingly low—even Twitch has invested more into Cloud9.

[quote=One_Punch_Man]the investment amount was 3 million (2.75 or something around there i forgot, when this dropped i saw the doc right away).[/quote]
Seems surprisingly low—even Twitch has invested more into Cloud9.
#19
1 Frags +
harshaOne_Punch_Manthe investment amount was 3 million (2.75 or something around there i forgot, when this dropped i saw the doc right away).Seems surprisingly low—even Twitch has invested more into Cloud9.

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.

[quote=harsha][quote=One_Punch_Man]the investment amount was 3 million (2.75 or something around there i forgot, when this dropped i saw the doc right away).[/quote]
Seems surprisingly low—even Twitch has invested more into Cloud9.[/quote]

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.
#20
1 Frags +

You misunderstand—3 million is absolutely the standard for this type of investment, but seeing the big names made me wonder whether they'd put in more.

Don't have a link handy for twitch, but the company has reportedly invested 3 million into both C9 and TSM while securing non-endemic sponsors for them (such as AXE).

You misunderstand—3 million is absolutely the standard for this type of investment, but seeing the big names made me wonder whether they'd put in more.

Don't have a link handy for twitch, but the company has reportedly invested 3 million into both C9 and TSM while securing non-endemic sponsors for them (such as AXE).
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