Amuka Ventures announces closing of their first esports limited partnership, pioneering a new 0% management fee model.
TORONTO, March 22nd, 2019 – Amuka Ventures, announces the closing of its first Limited Partnership, Amuka Tiidal Gaming LP. Through this offering, investors were able to participate in Tiidal Gaming Group Inc., one of Canada’s premier esports and entertainment companies and operator and owner of Lazarus Esports, which was Canada’s first esports brand and team founded in 2010.
“We felt that Tiidal Gaming had the strongest management team and the ability to execute on their plan. They have a clear and defined vision to be a a global leader in esports and gaming with a vertically integrated revenue model,” according to Ben Feferman CEO of Amuka Ventures.
Gaming analytics firm NewZoo recently reported that eSports revenue in 2019 will top $1 billion representing YoY growth of 26.7%. Sponsorships will account for the largest piece of the pie with 34.3% of all eSports revenue. Source NewZoo
Institutional investors are finally catching on to the trend with some high-profile esports IPOs set for 2019. Super League Gaming (SLGG) became the first esports company to IPO on the NASDAQ. SLGG counts Nickelodeon and Tampa Bay Lighting owner David Vinik as some of their key investors.
“The market is showing us that it will pay nearly 20x on revenues at IPO for select esports plays. It is critical to find solid companies with expert management and a strong track record in this industry that can build sustainable businesses – Tiidal Gaming is just that and more. From a valuation perspective, we feel the partnership invested at a discount to intrinsic value,” said Aaron Meckler, Chief Investment Officer at Amuka Capital.
The Amuka Tiidal Gaming LP also sets the bar for lowering fees. Typically, fees tend to be high in funds & partnerships with direct investment opportunities for high growth companies, but Amuka Ventures bucked the trend with a unique business model.
“Unfortunately, a lot of the splashy tech deals are layered with fees on top of fees and we felt investors deserved better. We thought it would better align everyone’s interests to slash management fees to 0% and only take a 10% carried interest over and above the true partnership costs. We only win if investors win,” said Justin Genest, Investment Banker at Amuka Capital.
About Amuka Ventures
Amuka Ventures, a division of Amuka Capital, is an investment & advisory firm that participates in high growth companies within the sectors of cannabis, proptech, cleantech, fintech, AI and esports.
About Amuka Capital
Amuka Capital Corp is a securities firm registered under The Securities Act as an exempt market dealer in ON, BC, and AB. NRD # 62220
This press release contains “forward-looking statements” including statements with respect to Amuka Capital’s potential returns and timelines. All forward-looking statements are based on current beliefs as well as various assumptions. By their very nature, forward-looking statements involve inherent risks and uncertainties. Readers should not rely on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Amuka Tiidal Gaming LP
For more information, please contact:
Ben Feferman, CEO
Amuka Capital Corp.
Aaron Meckler, Chief Investment Officer