North American esports organisation Sentinels announced earlier this week that it will receive a new cash injection of $3.4m (~£2.79m) from its ownership group.
An update from Sentinels’ StartEngine crowdfunding campaign stated that the ownership group is committed to supporting the organisation and will continue to assess the cash needs of the company on an ongoing basis.
The additional $3.4m will be used to continue supporting the organisation’s operations. Moreover, it will also help Sentinels expand into new esports endeavours and provide “peace of mind to the fans that Sentinels will not be going anywhere”.
According to the crowdfunding campaign, Sentinels has raised a total of $153,959 (~£126,261) from 83 investors at a price of $3.15 (~£2.58) per share. The campaign will be ending in three days on November 2nd, 2023. The company’s valuation is noted as $30.09m (~£24.68m).
The company gained a lot of attention when financial documents posted on the crowdfunding campaign highlighted that even if Sentinels were to successfully crowdfund the maximum offering, its operating tenure could only extend to up to four or five months — unless additional funding is generated.
This led Rob Moore, CEO of Sentinels, to provide additional information on the crowdfunding campaign via a YouTube video, reassuring that the organisation is committed to its strategy. In the video, he also stated that the reason why it made a big investment in its VALORANT operation was due to needing to catch up to other leading brands in North America.
Through investments collected by the campaign and the ownership group, Sentinels has raised enough capital to keep it operating safely for around five months, based on the monthly burn rate of $695,000 (~£570,080) found in the financial documents.
In a recent post on X by Moore, though, the company stated that it should see its burn rate improve substantially, as it sees “industry-wide reductions in player costs, and the company is poised to benefit from the introduction of in-game digital content via its flagship title, VALORANT.”
Additionally, Sentinels recently came fourth at the Halo World Championship, winning $70,000 (~£57.418) in prize pool earnings. According to Esports Charts, the tournament was the most-watched Halo event in the Halo Championship Series (HCS) history, registering a peak viewership of 159,787.