US-based online gaming platform operator Super League Gaming has filed to raise up to $25m in an initial public offering that would enable corporates including restaurant operator Cali Group to exit.
Founded in 2014, Super League Gaming has built a platform that enables users to play, watch and stream online games, and it operates eSports games and tournaments for titles such as Minecraft, Fortnite and League of Legends.
The company made a $13.1m net loss for the first three quarters of 2018, up from $11m in the first nine months of 2017, while increasing revenue from $73,000 to $640,000 over the same period.
Super League received $15m in a mid-2017 series C round that included a $2.4m investment by Cali Group, a backer since 2014, as well as media and entertainment producer DMG Entertainment and media group Viacom’s Nickelodeon division.
The round also featured eSports team owner and services provider Axiomatic, an undisclosed fund managed by telecommunications and internet firm SoftBank, venture capital firm Toba Capital and a number of undisclosed professional sports team owners.
The SoftBank fund had joined theatre owner Cinemark and undisclosed additional investors to provide $4.5m in funding for Super League in 2015, before the company collected $5m from Axiomatic and Toba Capital the following year.
Super League had previously raised approximately $1.6m in equity funding and $8.3m in debt financing according to regulatory filings.
Caliburger, an online food delivery service owned by Cali Group, also provided $2m in convertible debt financing for the company across separate investments in May and August 2018 . It currently holds a 17.6% stake while a vehicle named Pu Luo Chung VC owns 9.7%.
Northland Securities and Lake Street Capital Markets have been appointed underwriters for the offering, and Super League intends to float on the Nasdaq Capital Market.