- Esports infrastructure company Nerd Street Gamers announced it raised $12 million in Series A funding
Nerd Street Gamers — an esports infrastructure company that is dedicated to building the facilities (Localhost) that house leagues, training camps, tournaments, and showcases on professional-grade equipment — announced it completed a $12 million Series A financing round. Philadelphia-based retailer Five Below led the round of funding and they were joined by existing investors Comcast, SeventySix Capital, Elevate Capital, and angel investor George Miller.
Five Below and Nerd Street Gamers plan to build 3,000 square foot Localhost spaces connected to select Five Below stores starting with a multi-store pilot in 2020. And based on learnings from the pilot, the parties are going to determine the future rollout plans — which may include 70 or more locations over the next several years. These esports experiences are going to connect the gaming community through live in-person events played on pro-level equipment.
“This round of funding led by Five Below and the opportunity of Localhost locations connected to Five Below stores empowers our vision of a world where esports is accessible and inclusive for everyone,” said Nerd Street Gamers founder and CEO John Fazio. “Too few have access to the type of equipment and internet connections required to compete at the top levels, and by addressing that at a national scale we can increase real-life opportunities for millions of people.”
With this round of funding, Nerd Street Gamers is going to accelerate its technology platform growth. And it will be positioned to open venues in every major city in the country with the help of Five Below.
“The partnership with gaming expert Nerd Street Gamers is a unique opportunity to engage with an important and growing community of gamers in many of our locations across the country,” explained Joel Anderson, CEO of Five Below. “Gaming is a trend our younger customers are actively enjoying, and working with Nerd Street Gamers will help us to provide an exciting gaming experience that appeals to our core customers and beyond, while also showcasing our extreme value technology-related products and accessories. We look forward to providing more experiences for our customers to “Let Go & Have Fun!” while engaging with our communities at a deeper level.”
Along with the addition to the Localhosts connected to Five Below stores, Nerd Street Gamers are planning to build 50 larger regional and university-based facilities. And just last month, Nerd Street Gamers opened Localhost Huntington Beach (a 32,000 square foot regional facility), Localhost Wells Fargo Center in Philadelphia (the first public gaming facility in a pro sports arena), and announced Localhost Rowan University (one of many projects to bring professional-grade esports training facilities to universities across the country).
