Chinese esports startup VSPN bags $100m in Tencent-led round

Chinese esports startup VSPN (Versus Programming Network) said it has raised close to US$100 million in a series B funding round led by Tencent.

Other investors in the round include Tiantu Capital, Susquehanna International Group, and Kuaishou, with Lighthouse Capital acting as financial advisor for VSPN.

Photo credit: VSPN

“After this funding round, we look forward to building an esports research institute, an esports culture park, and further expanding globally,” VSPN chief exec Dino Ying said in a statement.

The company added that it will focus on building an esports short-form video ecosystem, improving its esports content creation capabilities, and reaching more gamers through different channels.

Founded in 2016, the Shanghai-based startup provides a platform for gamers to hold and join esports tournaments and build an audience through content creation. Its other ventures include esports commercialization and offline venue operation, according to the statement.

“VSPN’s long-term company vision and leading position in esports production are vital for Tencent to optimize the layout of the esports industry’s development,” said Tencent Esports general manager Mars Hou.

At this year’s Tencent Global Esports Summit, the technology conglomerate’s chief operating officer Mark Ren said that the company aims to organize more esports competitions in conjunction with tournament organizers like VSPN.

Tencent, which is the top video game company in the world in terms of revenue, has been making moves to further solidify its dominant position.

In August, the company proposed a merger between Huya and Douyu, two game-streaming platforms where it holds major shares. The deal materialized in October, with Tencent taking a 67.5% stake in the combined entity.

Tencent also assigned its interests in its gaming business Penguin Esports to the new entity for US$500 million.