Home » eSports investments in China hit ¥1.42bn in Q1 2021

eSports investments in China hit ¥1.42bn in Q1 2021

by LLT FINANCE REPORTER
6th Jul 21 12:32 pm

E-sports investment in China is on the rise again after slowing down in the last two years. According to date presented by Safe Betting Sites, eSports investments in China in Q1 2021 amounted to ¥1.42B, passing the total amount of investments made in 2019 – ¥910M. Investments made in the first quarter of the year also amounted to more than half of 2020’s total eSports investments in China.

Investments in Q1 2021 already more than half of 2020’s total investments

China is the world’s largest eSports market and in 2018 investments amounted to an all time high of ¥10.44B. However in 2019 eSports investments dropped by 91.3% YoY to just ¥910M after a reshuffling of the eSports market in China. In 2020, eSports competitions were one of the first online and global events to come back during the Covid-19 pandemic, which saw the industry gain exposure and attract more investments.

Investments amounted to ¥2.3B in 2020, a 152.75% increase from the year prior. The momentum from eSports investments continued on to the first quarter of Q1 2021 which had already surpassed the total investments made for the entire year of 2019. Q1 2021 saw ¥1.42N worth of eSports investments which is also already more than half of 2020’s total investments.

Investments becoming more valuable again

eSports content operators and eSports teams have traditionally been investment targets within the eSports industry but more especially since after the pandemic. In 2018 when investments amounted to an all-time high, there were 42 possible investment events which translated to just under a ¥250M investment per event.

However this number dramatically decreased in 2019 to just under ¥50M per event from just 19 possible investment events. In 2020 the figure bounced back to just over ¥100M per event from 21 investment events. Q1 2021 has so far seen 8 investment events that had attracted an estimated ¥178M perevent, a figure that could still rise by the end of 2021.

Rex Pascual, eSports editor at Safe Betting Sites, commented:

“The return of investor confidence after a stagnant last few years for the Chinese eSports industry is a welcome sign for the biggest eSports market in the world. Expect investments to continue to rise in the next few years and even exceed previous investment records.”

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