Los Angeles-based esports organization Sentinels announced Monday afternoon that its ownership group has committed to what it describes as a “sizable cash injection.” The ownership group has committed to invest an additional $3.4M USD into the company, which will allow it to continue ongoing operations of its existing esports endeavors, as well as expand into new areas, the company said in a release.
In a release, Sentinels CEO Rob Moore also highlighted its equity crowdfunding campaign on StartEngine, noting that the organization’s fans have invested more than $150K since it launched in August. That campaign, which gives fans an opportunity to invest in the organization and receive “exclusive investor rewards,” closes at the end of the week.
“The investment in the company is a testament to our belief in Sentinels as a brand and the long-term opportunities in esports,” Moore said in a release. “We also wanted to provide fans, who are the most important part of our business, the ability to own a share of the company. Our fans have already shown significant support with over $150,000 invested in the company through our crowdfund.”
Sentinels announced plans to engage in the equity crowdfunding campaign through StartEngine on July 12, formally launching reservations on the platform. After gauging interest, it launched the campaign in August.
Some in the media and the community saw this move as an act of desperation, but a Sentinels rep. told The Esports Advocate that the campaign was a way to involve fans and not a significant vehicle to generate capital.
“The crowdfunding was used to give fans the opportunity to be a bigger part of the organization,” the rep. said. “Sentinels did not aim for it to be the primary source of funding for the organization, the Sentinels ownership group will continue to be the primary source of any required capital if required.”
Sentinels noted that it expects the company’s burn rate to improve (be reduced) due to a number of factors including “industry-wide reductions in player costs.” It also expects to see a financial benefit from the introduction of in-game digital content through Valorant as an officially partnered team in Valorant Champions Tour (VCT).
When asked how much of a runway this will give the company into 2023 and beyond, Sentinels told TEA that the ownership will continue to monitor the situation and provide support when needed.
“Sentinels will monitor the cash needs of the company and are ready to inject further capital if required,” the rep. said. “The organization is hopeful that in-game monetization via VALORANT will provide sizable funding, which will have a significant impact on the organization’s cash flow.”
Sentinels currently fields teams in Valorant, Apex Legends, and Halo. It is also the home to several content creators including CS:GO pro Tarik Celik, Brandon “Aceu” Winn, Jared “Zombs” Gitlin, and Daphne “39Daph” Wai.
On a related note, Sentinels announced Friday that it plans to host a three-day, invite-only Valorant competition open to the general public called The Sentinels Invitational (Nov. 1 – 3). Part of the VCT OFF//SEASON, the competition will feature four teams from the Americas region competing for part of a total prize pool of $20K USD—those teams include G2 Esports, Moist x Shopify, Oxygen Esports, and Sentinels.
Editor’s note: We erroneously attributed a quote to Sentinels CEO Rob Moore, when it was actually from a company rep. We have corrected the error and apologize for the confusion.