US-based esports franchise Faze Clan has completed a $40m series A round co-led video commerce platform developer Ntwrk and Jimmy Iovine, co-founder of record label Interscope, it confirmed on Friday.
The round also featured a syndicate of angel investors that included actor Chris O’Donnell, basketball professionals Meyers Leonard, Jamal Murray and Josh Hart, rappers DJ Paul, Swae Lee and Offset, and Guy Oseary, the talent agent who heads record label Maverick.
Founded in 2010, Faze Clan is an esports company that manages professional teams for competing in video game franchises including Fortnite, Fifa and Call of Duty, in addition to producing branded fashion and lifestyle merchandise.
Faze Clan’s partners include sports franchises Manchester City and the Los Angeles Kings, and its content attracts roughly 500 million monthly views across social media and online video platforms.
The funding will be used to expand the company’s operations and add more esports players to its roster.
Ntwrk’s participation in the round was disclosed earlier this month without details of its size. It has acquired direct-to-consumer product rights for Faze Clan’s merchandise and apparel, and will integrate the company’s content into its online programming.
Faze Clan had previously secured $22.7m in convertible debt financing from undisclosed investors in February this year at a $220m pre-money valuation, according to Esports Insider.
Venture capital fund Muse Capital contributed to a seed round of undisclosed size for the company in late 2018, and its earlier investors also include VC fund Prototype Capital.