Sentinels ownership group gives company $3.4M as crowdfunding winds down
Robert Paul/Riot GamesSentinels huddled on the VCT Americas stage with their newest lineup.
Sentinels have announced that its ownership group has injected $3.4 million in additional capital into the company to continue to operate as usual.
Sentinels revealed in a press release on October 30 that its ownership group has invested an additional $3.4 million in the esports company. The ownership group consists of Sentinels’ parent company P1 Esports LLC, JAG Futureu Ventures LLC and the Jerry A Greenburg Trust.
The news comes as Sentinels’ crowdfunding effort is about to reach its conclusion. The StartEngine crowdfunding campaign will end on November 3 and has raised over $150,000 so far from individual investors.
Sentinels came under fire around the launch of the campaign as its offering memo revealed how strapped for cash the company is, and how much its top executives make. The company’s CEO Rob Moore addressed these concerns in an interview a day later and said that Sentinels had already “raised capital internally” from its investment group.
“The ownership group remains committed to supporting the company and will continue to assess
the cash needs of the company on an ongoing basis,” the press release said.
Sentinels end crowdfunding campaign, also get cash from ownership
Moore also addressed the capital injection in the press release.
“The investment in the company is a testament to our belief in Sentinels as a brand and the long-term opportunities in esports. We also wanted to provide fans, who are the most important part of our business, the ability to own a share of the company,” he said.
The release also said the next quarter will see the company’s burn rate “improve substantially” thanks to industry-wide downsizing in player costs. It also highlighted in-game cosmetics sales from the esports organization’s flagship competitive title, Valorant, as something it stands to benefit from in the future.
The injection of millions of dollars and the correction of the market in terms of esports player salaries should be a boon for the organization that stated in its offering memo that it could be on its last legs if it didn’t hit certain goals with its crowdfunding operation.
