Early investors of Facebook, Airbnb, SpaceX and more, Founders Fund invests in Nerd Street’s vision and will accelerate company’s rapid growth
PHILADELPHIA, February 2, 2021– Nerd Street Gamers, the national esports infrastructure company, announced today it has raised $11.5 million in additional funding led by San Francisco-based venture capital firm Founders Fund, captained by Brian Singerman, bringing the company’s total funding to approximately $25 million.
Nerd Street experienced explosive growth thanks to its digital platform, even with Localhosts, the company’s esports and gaming centers, closed for the majority of the past year due to the pandemic. The platform, which offers affordable competitive experiences like tournaments, camps and coaching, grew its membership by more than 218% since 2019. Meanwhile, Nerd Street’s Twitch Channel, where the company live-broadcasts its tournaments, grew over 4,066% in minutes watched and grew from 13K followers to over 120K this past year.
With an eye towards a post-pandemic future where gamers will need affordable access to high-quality equipment more than ever, Nerd Street continued opening new Localhosts in Austin, Philadelphia and St. Louis in 2020. Over the course of the next year, Nerd Street is planning to open 20,000+ square foot regional Localhost facilities in Philadelphia and Los Angeles, and is rolling out several Localhosts in collaboration with teen and tween-focused retailer Five Below.
“Nerd Street being added to Founders Fund’s portfolio of industry-pioneering organizations is one of our greatest honors to date,” said John Fazio, founder and CEO of Nerd Street Gamers. “Within minutes of meeting Brian, it was clear that he was profoundly aligned with our vision and mission. Backing us during the uncertainty of a global pandemic is a testament to Brian’s bold foresight and an incredible validation for our entire team.”
As a partner at Founders Fund, Brian Singerman seeks out companies that will provide value to investors and humankind alike. Nerd Street was an attractive investment for Brian as he has a background as a gamer and immediately saw Nerd Street’s long-term vision to help the industry offer gamers the same opportunities that traditional sports provide athletes.
“I was impressed with John from our first meeting and knew I wanted to help advance his vision of building a robust infrastructure to support gamers of all ages and skill levels,” said Singerman. “As a gamer myself, I’ve watched the massive growth of esports over the years. Esports are surpassing traditional sports in number of players and audience size, especially among younger demographics, and Nerd Street is in a perfect position to capitalize on that shift.”
This announcement follows Nerd Street’s Series A funding round in October 2019, during which the company raised approximately $12 million from Five Below, Comcast Spectacor, SeventySix Capital, Elevate Capital and angel investor George Miller. All existing investors are participating in the latest funding round.
About Nerd Street Gamers
Nerd Street Gamers (Nerd Street) is a national network of esports facilities and events dedicated to powering competitive opportunities for gamers. The company promotes greater access to the esports industry, laying a national framework for esports talent development and high-quality gaming tournaments. Nerd Street has received backing from Five Below, Comcast Spectacor, SeventySix Capital, Elevate Ventures, angel investor George Miller, and Founders Fund.
About Founders Fund:
Founders Fund invests in the world’s most important and valuable companies across all sectors and stages. The firm’s partners have been founders and early funders of companies including PayPal, SpaceX, Palantir, Airbnb, Stripe and Facebook. Founders Fund pursues a founder-friendly investment strategy, providing maximum support with minimum interference. More information is available at www.foundersfund.com.
Brownstein on behalf of Nerd Street Gamers