Matcherino

Matcherino

Early Stage

Powering Community Tournaments

Powering Community Tournaments

Overview

Raised to Date: Raised: $103,273

Total Commitments ($USD)

Platform

StartEngine

Start Date

09/26/2023

Close Date

12/25/2023

Min. Goal
$14,998
Max. Goal
$617,999
Min. Investment

$299

Security Type

Equity - Preferred

Series

Series A

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$2.30

Pre-Money Valuation

$6,241,724

Rolling Commitments ($USD)

Status

Active

Reporting Date

12/08/2023

Days Remaining

17

% of Min. Goal

689%

% of Max. Goal

17%

Likelihood of Max
unlikely
Avg. Daily Raise

$1,415

# of Investors

14

Momentum
cold.svg
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Year Founded

2015

Industry

Media, Entertainment & Publishing

Tech Sector

EnterpriseTech

Distribution Model

B2B

Margin

Medium

Capital Intensity

Low

Location

Bellevue, Washington

Business Type

Growth

Matcherino, with a valuation of $6.24 million, is raising funds on StartEngine. The company provides free-to-use tournament production and monetization tools for gaming creators and their communities. Matcherino is a leading community tournament platform and has executed its vision successfully with its elite client roster, including Wizards of the Coast, ESL Gaming, and Supercell. The company is backed by a diverse revenue model and has distributed $17 million in prizes to about 250,000 players globally. Grant Grosvenor Farwell founded Matcherino in June 2015. The current crowdfunding campaign has a minimum target of $14,998.30 and a maximum target of $617,998.50. The campaign proceeds will be used for research and development, sales and marketing, and working capital.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$708,656

$462,326

COGS

$377,188

$291,870

Tax

$0

$0

 

 

Net Income

$-694,254

$-1,226,380

Summary Balance Sheet

FY 2022 FY 2021

Cash

$122,343

$757,927

Accounts Receivable

$61,799

$139,711

Total Assets

$188,740

$903,119

Short-Term Debt

$483,638

$366,454

Long-Term Debt

$0

$142,135

Total Liabilities

$483,638

$508,589

Financials as of: 09/26/2023
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
Matcherino 12/25/2023 StartEngine $6,241,724 $103,273 Equity - Preferred Active RegCF
Matcherino 10/15/2021 SeedInvest $13,090,848 $5,066,212 Equity - Preferred Funded RegCF / RegD 506(c)
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Analyst Report

Synopsis

Esports, or competitive video gaming, has become popular over the past decade. The global esports market is projected to reach 3.5 billion USD by 2025, growing at a compound annual growth rate (CAGR) of 18.61%. This growth is driven by the increasing popularity of video games, advancements in AR and VR technologies, and the widespread adoption of mobile gaming. 

However, the esports industry faces several challenges. One of these challenges is the difficulty of monetizing esports events. Despite the large audiences that esports events attract, many event organizers struggle to generate revenue due to the lack of effective monetization tools. This is where Matcherino comes in.

Matcherino provides a proprietary tournament platform that helps make esports events financially viable. The platform offers free-to-use tournament production and monetization tools for gaming creators and their communities.

Next Section: Price

Price

Matcherino is raising funds on StartEngine at a valuation of $6.24 million. This valuation represents a reasonable 8.8x revenue multiple, given Matcherino's revenue growth rate of over 53% and its strong partnerships with industry leaders such as Wizards of the Coast, ESL Gaming, and Supercell. Additionally, Matcherino's low capital intensity indicates that the company does not require significant investment to maintain its operations and generate revenue. Matcherino is well-positioned to capitalize on the growing esports industry with its free-to-use tournament production and monetization tools. Overall, the current valuation of Matcherino appears reasonable and aligns with the company's growth potential and market position.

Next Section: Market

Market

Matcherino operates in the burgeoning esports market, experiencing significant growth in recent years. The esports market size in the United States was valued at $1.1 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 7.95%. The increasing popularity of video games and connected ecosystems and the growth of live-streaming platforms have contributed to this rapid expansion.

However, the esports market is not without competition. Many companies are vying for a share of this growing industry, offering various solutions for gamers, creators, and their communities. Despite this, Matcherino seems to have carved out a unique niche within this market by providing a complete, proprietary tournament platform that enables bigger and better esports events.

Matcherino's platform appears well-received in the market, boasting an impressive roster of clients such as Wizards of the Coast, ESL Gaming, and Supercell. Furthermore, the company has successfully distributed $17 million in prizes to approximately 250,000 players globally, demonstrating its potential to attract and engage users.

Next Section: Team

Team

Chairman Grant Farwell founded Matcherino. Farwell has extensive experience in the gaming industry, with a focus on esports and tournament production. He has successfully executed Matcherino's vision and built strong partnerships with elite clients such as Wizards of the Coast, ESL Gaming, and Supercell. With his relevant industry experience and high-level managerial skills, Farwell can lead Matcherino in the rapidly growing esports market.

Matcherino's team consists of 15 members who are dedicated to the company's success. While there have been no recent additions, the existing team members are experienced and knowledgeable in their respective roles. The team's expertise in tournament production and monetization tools for gaming creators and their communities has contributed to Matcherino's position as a leading community tournament platform.

Next Section: Differentiation

Differentiation

Matcherino differentiates itself as a leading community tournament platform in the esports industry. The company provides free-to-use tournament production and monetization tools for gaming creators and their communities. It has successfully executed its vision with an impressive client roster that includes Wizards of the Coast, ESL Gaming, and Supercell. This elite client list showcases Matcherino's ability to attract and serve top players and organizations in the esports space.

Matcherino's differentiation level in terms of quality is high. The company has established itself as a trusted platform for community tournaments and has gained recognition from industry-leading clients. 

Overall, Matcherino's success in providing tournament production and monetization tools, strong client roster, and ability to generate revenue through a diverse model contribute to its differentiation in the esports industry. While the report does not highlight any specific disruptive features, Matcherino's track record and partnerships position it as a leading player in the market.

Next Section: Performance

Performance

Matcherino has achieved significant success in esports with its free-to-use tournament production and monetization tools. The company has established itself as a leading community tournament platform and has secured partnerships with prominent gaming companies such as Wizards of the Coast, ESL Gaming, and Supercell. These partnerships have helped Matcherino build an elite client roster and gain recognition within the industry.

With a diverse revenue model, Matcherino has been able to generate consistent revenue and grow its user base. The company's primary revenue model is recurring, supplemented by transactional revenue streams. In 2021, Matcherino recorded an annual revenue of $708,656, representing a growth rate of 53.28% compared to the previous year. This growth demonstrates the company's ability to attract and retain paying customers in the highly competitive esports market.

Despite being in the early stage of development, Matcherino has achieved impressive results. The company has distributed $17 million in prizes to approximately 250,000 players globally, highlighting its platform's widespread adoption and impact.

Next Section: Risk

Risk

Matcherino presents a moderate level of risk for prospective investors. While the company operates in a high-growth industry and has established partnerships with well-known entities such as Wizards of the Coast, ESL Gaming, and Supercell, some factors remain to consider. Matcherino is in the pre-profit stage and has yet to achieve profitability, resulting in negative net income figures. Additionally, there is competition in the market, which could impact the company's ability to capture market share. However, Matcherino has demonstrated market acceptance and achieved revenue growth, indicating a positive reception to its platform. Overall, while there are risks associated with Matcherino, the company's strong partnerships and revenue model provides a foundation for potential success in the esports industry.

Next Section: Bullish Outlook

Bullish Outlook

Matcherino has established itself as a leading community tournament platform in the esports industry. With a diverse revenue model and strong partnerships, the company has successfully executed its vision and attracted elite clients such as Wizards of the Coast, ESL Gaming, and Supercell. Matcherino's platform provides free-to-use tournament production and monetization tools, empowering gaming creators and their communities.

The esports market has tremendous potential for growth, and Matcherino is well-positioned to capitalize on this opportunity. The company's ability to distribute $17 million in prizes to approximately 250,000 players globally showcases its strong standing in the industry. With a recurring revenue model and a track record of revenue growth, Matcherino has demonstrated its ability to generate consistent and increasing revenue streams.

In summary, Matcherino's leading position in the community tournament space, diverse revenue model, strong partnerships, and track record of revenue growth present a bullish outlook for the company. As the esports market expands, Matcherino is poised to capture a significant share of the addressable market and further solidify its position as a key player.

Next Section: Bearish Outlook

Bearish Outlook

Matcherino operates in a highly competitive market, and while it has established partnerships with prominent companies such as Wizards of the Coast, ESL Gaming, and Supercell, it still faces significant challenges. The barriers to entry in the esports industry are relatively low, and new competitors could emerge with similar tournament production and monetization tools. As the industry continues to grow, more players will likely enter the market, intensifying the competition for Matcherino.

Furthermore, Matcherino's financial performance raises concerns. Despite achieving a revenue growth rate of 53.28%, the company reported a net loss of $694,254 in its most recent fiscal year. This indicates that Matcherino is struggling to generate sustainable profits and achieve profitability. 

Matcherino's reliance on recurring revenue and transactional models may also pose challenges. While recurring revenue provides some stability, it may not be sufficient to sustain the company's growth and cover its expenses, as evidenced by its negative net income.

Next Section: Executive Summary

Executive Summary

Matcherino is a community tournament platform that provides free-to-use tournament production and monetization tools for gaming creators. The company is a significant player in the esports industry, distributing $17 million in prizes to approximately 250,000 players worldwide. Its client roster includes notable names such as Wizards of the Coast, ESL Gaming, and Supercell, demonstrating its ability to attract and retain high-profile customers.

The company's revenue model is diverse, and it has demonstrated growth in revenue since its last funding round. In the most recent fiscal year, Matcherino generated an annual revenue of $708,656, showing an increase of 53.28%. However, it is still in the pre-profit stage, with a net income of -$694,254 for the latest fiscal year. The company's current valuation is $6.24 million, which is not overvalued, given its market potential and revenue growth.

Matcherino aims to use the funds raised in this crowdfunding campaign for research and development, sales and marketing, and working capital. This investment could aid the company in further technological advancement, customer acquisition, and operational efficiency. However, potential investors should note that the company operates in a moderately competitive market with low barriers to entry, which could pose challenges in the future.

Matcherino's performance and potential make it an exciting investment opportunity in the growing esports industry.

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Matcherino on StartEngine 2023
Platform: StartEngine
Security Type: Equity - Preferred
Valuation: $6,241,724
Price per Share: $2.30

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