Brazilian Organization INTZ Looking for New Investment
Brazilian esports organization INTZ announced it is looking for new investors. The company is offering participation quotas up to a 10% ownership stake. The round is expected to be completed around August 2020.
“The reason we are attracting investments is due to the need of purchasing our spot in franchises, mainly from the Brazilian Championship of League of Legends (CBLoL), as well as for the other projects planned for 2021, which are directly related to the possible entry into the franchise,” INTZ CEO Lucas Almeida told The Esports Observer.
This is the first investment round the organization is pursuing in its history. Almeida pointed out that INTZ is a bootstrapped company which has financial responsibility as one of its pillars and reached break-even after six months of existence: “We climbed sustainably to the level of largest club in Latin America with more than 70 athletes, 30 employees, 14 competitive modalities, and dozens of titles.”
Almeida explained why the organization decided to solicit outside investment and why becoming a publicly-traded company is difficult in Brazil: “IPO in Brazil has costs and requirements that are currently unfeasible for many companies, especially for those in electronic sports. Maybe new models will appear soon and we may even be the first club in the Americas to open its IPO. It is the desire of any entrepreneur,” he says.
INTZ is counting on financial companies to structure the round. However, due to contractual agreements, it has not revealed their names. Almeida asks interested investors to contact him directly: “We have a deck validated by a respected company in the scenario and proven validation of our valuation. But the first contact I make sure to focus on me to get to know the investor.”
When asked about what the investor should expect in the Brazilian esports market, Almeida pointed out that it may be the last opportunity to enter a high potential market: “It is the last region to go through the initial investment rounds, before the future series B. It is a unique and maybe final opportunity for investments in these initial figures, since looking at other international markets valuation grows year-by-year and opportunities are more expensive and scarce.” Almeida also points out that, considering the current exchange rate to the Brazilian Real (BRL), the opening is even more interesting for foreign investments.
Earlier this year Simplicity Esports, manager of Flamengo Esports in Brazil, received $500K USD in investments by Triton Funds, the largest student-run fund in the United States. The amount was also mainly destined to purchase Flamengo’s spot in CBLoL, which will turn to a franchising structure in 2021.
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