Chinese eSports Provider VSPN Raises $60 Million To Expand Overseas

Chinese eSports provider VSPN has raised $60 million in a Series B+ funding round to help it expand its operations overseas.

Investors in the latest financing included Prospect Avenue Capital, Guiotai Junan International, and Nan Fung Group. Lighthouse Capital served as the exclusive financial adviser.

Shanghai-based VSPN said it plans to spend the cash largely on investing in innovative eSports production technologies, creating new products and expanding its reach overseas.

“The eSports industry is through its nascent phase and is entering a new era,” said VSPN Founder and CEO Dino Ying in a statement. “We are counting the days until the pandemic is over, and we hope that we can make fast and steady progress in expanding VSPN internationally, participating in the making of global eSports standards, and supporting the development of a sustainable eSports ecosystem worldwide.”

A Series B round conducted in October 2020 raised $100 million. That round was led by Tencent Holdings and joined by Tiantu Capital, Susquehanna International Group (SIG) and Kuaishou.

Early investors in the company include Focus Media Network, Sequoia Capital China, China Media Capital, China Jiansheng Sports Industry Fund, Guangdian Capital and Averest Capital, according to VSPN.

Last week, VSPN announced it had acquired Banana Gaming & Media, a move it said was “crucial” to expanding its global reach. Banana Gaming has operations in Shanghai and Seoul, Korea.

Consumer demand for eSports and online sportsbooks has increased during the pandemic, which saw the cancellation of most live sporting events.

In a fall interview with The New York Times, Seth Schorr, chief executive of casino-management company Fifth Street Gaming and founder of the Nevada Esports Alliance, said, “I expect that within the next five to 10 years in North America, eSports will be third after the NFL and the NBA in terms of total wagering.”

Ray Marino, head trader for live U.S. wagering at the sports betting site BookMaker, agreed. “This is never going to replace real sports, but it’s something we can do for now to give people their fix,” Marino told industry publication SI Gambling last spring. “We’re talking about the strengths of virtual teams right now, but this is the current landscape.”