US-based esports manager Nerd Street Gamers has completed a $12m series A round led by children and teen-focused retailer Five Below.
Mass media group Comcast, sport technology-focused venture capital fund SeventySix Capital, VC firm Elevate Capital, and angel investor George Miller also took part. Five Below was advised on the deal by PJ Solomon.
Formerly known as N3rd Street Gamers, Nerd Street operates esports facilities and manages tournaments, and is collaborating with Five Below on the construction of specialist facilities at some of its stores that will host leagues, tournaments and training camps.
The initial hubs are intended to be a pilot for a wider business plan in future that may involve the introduction of up to 70 stores. Nerd Street Gamers also plans to develop some 50 larger regional facilities, some of which will be based in universities.
Comcast Spectacor, which runs National Hockey League (NHL) franchise Philadelphia Flyers and Overwatch-focused esports team Philadelphia Fusion, joined SeventySix Capital in a $2.6m round for the company in February 2019, which was followed by $1.6m in debt financing in July.
The company had received an undisclosed amount from SeventySix Capital in late 2017 and secured a further $1.3m in June 2018, according to a securities filing.
Joel Anderson, CEO of Five Below, said: “Gaming is a trend our younger customers are actively enjoying, and working with Nerd Street Gamers will help us to provide an exciting gaming experience that appeals to our core customers and beyond, while also showcasing our extreme value technology-related products and accessories.”
