Business meets gaming.
New investment opportunities are constantly becoming available worldwide due to the growth and innovation of multiple regions. That’s why top dog investors have made the switch from cryptocurrency and fast food chains to the esports industry. Some hedge funds have funded individual players while others have supported well-rounded teams. While a lot of people have become success stories, others have lost tons of money on their ideal gaming dreams.
One company by the name of W7M Investments has recently pulled out from competing in Counter-Strike: Global Offensive (CS:GO). The organisation is still competing in other gaming genres, just not the beloved online shooter. W7M Gaming made their debut in 2017 with a roster from Bootkamp Gaming, a Brazilian training centre that has hosted some of the greatest amateur players.
W7M MAKES A RISKY DECISION
Before W7M set their sights on building an esports division, they were simply a small investments group dedicated to technology and software. They’re mostly known for collaborating with TGR Investments, L2AD, ADFI, and Ads2Fast. The idea of investing in a competitive gaming team was clearly out of their comfort zone, but taking risks is everyday work for W7M. That’s why they contacted Bootkamp Gaming and started writing up a mound of player contracts.
Knowing that Brazilian lineups often compete against North American superstars, entering a team from their hometown wasn’t such a bad idea. The team started out competing in monthly qualifiers but found little success. W7M lost both of their events nearing the end of their first competitive season, meaning the company had to cut some losses. Before joining W7M, how good was this roster from Bootkamp Gaming?
The original Bootkamp Gaming lineup was actually acquired from Black Dragon e-Sports. An old school Brazilian org that was known for its Quake clan back in 1996. To say the least, their CS:GO team wasn’t the best compared to their other FPS lineups. They played in roughly fourteen different tournaments earning just under five thousand dollars. With numbers like that, Black Dragon had to find a team willing to purchase their roster with hopes to break even.
After being passed on to Bootkamp Gaming, the roster received one last chance to prove their worth by competing. Bootkamp played a total of six events and increased their teams profits by sixty percent. On top of that, they played fewer events compared to their previous season and came out with skyrocketing revenue. That information alone would have provided W7M with the confidence they needed in a team. Bootkamp won four of their events including the ESL Brasil Premier League, a two-month tournament which hosts some of the best Brazilian teams in the B-Tier scene.
After their run with Bootkamp, W7M Gaming was considered a step up for a player transition. W7M gave their players a chance to compete under a fully funded org known for their tech investments. W7M's profits decreased within their first quarter, but they managed to bounce back in 2018 after multiple roster changes. W7M played a whopping total of fifty events along with an increase in tournament earnings peaking at ninety percent. With the help of a brand new player base, W7M was on the right path to victory.
As W7M Gaming began to grow, so did their players. In 2019, Felipe "skullz" Medeiros was recognised for his rifling abilities which led to his loan to Luminosity Gaming. After W7M had a drop in tournament entries, their profits began to suffer. They made an attempt to break out in the A-Tier circuit, but eventually found themselves competing in C-Tier tournaments once again. W7M finished in sixth-place at the DreamHack Open in Rio de Janeiro after going 1-2 in their group stage, preventing the newcomers from fighting their battles in the playoffs against AVANGAR.
In 2020, W7M made some costly decisions in an attempt to build a dominant roster. They acquired Rinaldo "ableJ" Moda Júnior from FURIA Academy and Filipe "pancc" Martins from Sharks Esports. It seems like signing some highly anticipated players paid off due to W7M placing first at CLUTCH Season 2. To this day, W7M’s run at CLUTCH Season 2 is still their greatest achievement yet. They beat out seven different teams and brought home a humble ten thousand dollars.
POWERHOUSE FIRM CRUMBLES
One of the most important rules when investing in esports is being prepared to lose money from success. While many teams are seen as royalty in the online world due to their tournament placements, the investors behind them are often struggling to secure funding. During a world pandemic and a massive decline in the stock market, investors have still managed to enter the cutthroat arena of esports. Some investment groups like funding underdog companies while others choose the safe route to earning income. It seems like W7M Gaming didn’t pay off, but that shouldn’t take away from the success they had back in 2019.
Images via W7M Gaming