Why Invest in The Converger?
The Converger offers an innovative, scalable solution for the rapidly growing esports industry.
With a patent pending, brilliant team, network, industry partners and substantial non dilutive grant investment, The Converger is currently valued at £10M, we are offering up to 10% equity for £1M to early-stage investors. With £670K of grants already invested in The Converger and over £1M lined up in in kind partner support, our raise positions us to raise a further £1M in non dilutive grant funding, taking us fro TRL6 to TRL8 thus doubling our valuation to £20M and your investment in in 12 months.
Backed by strong comparables and valuation methodologies, The Converger is primed to be an attractive acquisition target, providing investors with an excellent ROI.
The Converger’s valuation details, comparable acquisitions, and supporting data from other companies are listed below, providing a clear, investor-friendly overview.
Methods
The Valuation Methods used to reach our £10M valuation
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The Scorecard Method adjusts the average pre-money valuation for startups in similar sectors (gaming/esports) by factoring in the strength of the team, technology, and market size.
Pre-revenue Baseline for Games/Esports: £12M (average for high-growth startups)
Adjustments:
Team: Strong founding team with industry expertise (1.8x adjustment) = £21.6M
Technology: Patent-pending tech + nodal integration innovation (1.5x adjustment) = £32.4M
Market: Esports industry projected to grow to $5B to $10B by 2029 (1.2x adjustment) = £38.88M
Scorecard Method Valuation: £38.88M
The £10 million valuation is conservative when compared to the overall value and potential of the esports and gaming industries.
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The VC Method estimates the company’s future value based on exit potential, then discounts it back to present value, considering the associated risks.
Exit Potential:
We are conservatively targeting a £50M exit by 2026. However, given the rapid growth of the esports and gaming sectors, this exit target could easily be exceeded as market demand grows and The Converger scales.
Expected ROI:
While investors often expect a 5x return on high-risk startups, especially in fast-growing industries like esports, this target is conservative for The Converger. The high acquisition activity in the gaming sector suggests that larger exits are common, leading to higher-than-expected returns.
Supporting Evidence for a Conservative 5x ROI:
Market Growth: The esports industry is projected to reach $5B to $10B by 2029, with double-digit growth rates. Companies within the space often achieve exits far beyond their initial targets.
Comparable Acquisitions: Companies like PlayVS and FACEIT exceeded their early-stage valuations with exits delivering 10x or higher returns for early investors.
Acquisition Trends: Large gaming and tech companies (Tencent, Epic Games, Riot Games, etc.) are acquiring esports tech at increasing valuations due to the strategic importance of these ecosystems. For instance, Twitch was acquired for $970M, and FACEIT was part of a $500M deal, highlighting the potential for significant upside in this market.
Valuation and Present Value:
Based on a £50M exit target in 2026, we are maintaining a £10M valuation today, which reflects strong growth potential but remains conservative compared to industry trends and offers an excellent opportunity fo rte right investor.
5x Return Target: Present value = £10M (for a £50M exit).
In reality, larger exits in this industry have resulted in higher ROI hence a 5x ROI based on a £50M exit is conservative given the esports sector's rapid growth and high-value acquisitions. The gaming and esports industry regularly sees companies achieving higher exits, meaning early investors in The Converger could experience even greater returns than initially projected.
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Based on the Xcorecard and VC methods, The Converger's valuation is conservatively estimated to fall within the £10M to £15M range. Given our pre-revenue status, strong founding team, innovative patent-pending technology, and strategic partnership potential, we are offering investors up to 20% equity for £2M.
This valuation reflects the high exit potential (targeting a £50M exit by 2026) while acknowledging the current market conditions and early-stage risks. However, given the rapid growth in the esports industry, a 5x ROI is conservative, and the actual returns for early investors could be significantly higher.
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Factor-Based Valuation (also known as Asset-Based Valuation) focuses on both our tangible and intangible assets, including the value of the team, network, grants, and partnerships.
We considered:
Cost-to-Build: The total investments made to date, including operational expenses, capital expenditures, and development costs.
Tangible and Intangible Assets: Including grants, partnerships, proprietary technology, and intellectual property.
Team and Network Value: Assessing the value of the team's expertise, experience, and industry connections—particularly important in tech startups.
Potential for Growth: Evaluating future potential in terms of market size, scalability, and the growth trajectory of the business model.
This qualitative and subjective method is well-suited for valuing our early-stage, pre-revenue startup with our valuable assets and strong growth potential.
As a result, the valuation reached was £10,000,000.
Contact us for the full breakdown
Early-Stage Comparables
A selection of comparables for pre revenue start up in this space
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Valuation: $15M (~£11.4M) pre-revenue.
Sector: Esports platform for amateur gamers.
Why Comparable: Focused on community engagement and grassroots gaming events, similar to The Converger's DIY esports model.
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Valuation: $15M (~£11.4M) early stage.
Sector: Esports tournament platform.
Why Comparable: Both The Converger and FACEIT provide the infrastructure for gamers to participate in esports events, though The Converger offers immersive, customizable event creation.
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Valuation: Estimated £20M+.
Sector: Esports venue and event hosting.
Why Comparable: The Converger provides game companies with the ability to turn any venue into an esports arena, similar to HyperX’s business model.
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Valuation: $30M (~£23M) before acquisition.
Sector: Live-streaming tools for gamers.
Why Comparable: Streamlabs empowers gamers to control their streaming experience, just as The Converger empowers players to create immersive esports events.
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Valuation: $13M (~£10M) early stage.
Sector: Cross-platform avatars for gaming/metaverse.
Why Comparable: Ready Player Me allows for customized player experiences across platforms, much like The Converger integrates with game engines and tools to allow customizable event creation.
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Valuation: $40M (~£30.4M) early stage.
Sector: Esports betting and content platform.
Why Comparable: Unikrn engages esports communities through unique, value-driven experiences, much like The Converger creates unique event experiences.
Exit Comparables
A selection of comparables for exit in this space
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Deal Value: $4 billion (2021)
Description: Moonton, the developer behind the popular mobile game Mobile Legends, was acquired by ByteDance to strengthen its presence in the global gaming market, particularly in mobile gaming and esports.
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Deal Value: $89 million (2019)
Description: Streamlabs provides tools for streamers to enhance their content, making it a popular choice in the esports and game streaming industry. Logitech acquired Streamlabs to bolster its position in gaming hardware and software by expanding into streaming-related services.
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Acquisition Value: $12.7 billion
Why It Supports The Converger: Take-Two’s acquisition was driven by Zynga’s community-driven engagement, a key aspect of The Converger’s strategy to organically grow user bases.
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Acquisition Value: $970M
Why It Supports The Converger: Twitch grew through user-generated content and community involvement—a strategy mirrored by The Converger, which relies on players and fans to organically drive brand growth.
Features and Benefits
Of The Converger that support our valuation
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The Converger enables a new era of DIY competitive esports events, offering the foundation for future features like advanced matchmaking, real-time analytics, and API integrations. These can be further developed by a larger tech company, positioning The Converger as a unique tool in the esports and gaming ecosystem
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The app connects gamers locally building community and driving real world connections and the valuable data therein.
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The Converger enhances user engagement metrics and facilitates rapid player growth through seamless esports integrations. This positions it as a significant growth driver in the gaming ecosystem and a catalyst for the exponential expansion of eSports.
Prepare for main London launch event.
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The Converger can easily plug into existing game ecosystems, tournament platforms, or player management systems, along with industry-standard live systems. This enhances operational efficiency and provides immediate scalability for the acquiring company.
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The Converger improves esports infrastructure, providing a competitive advantage by democratizing tournament economies, increasing audience engagement, and unlocking in-app monetization opportunities. For brands looking to expand in the esports market, owning this infrastructure offers a decisive edge.
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The Converger functions similarly to Zapier, MuleSoft, or Segment, connecting disparate tools and systems in esports. Its ability to integrate makes it highly attractive to companies seeking to own the connective infrastructure of esports.
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As seen with acquisitions like Kong, Jitterbit, and MuleSoft, companies that provide robust API and data integration are in high demand. The Converger, through API integrations, can facilitate seamless data exchange, making it a strategic acquisition target for companies expanding their esports capabilities and data management.
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With the rising demand for workflow automation, platforms like Tray.io, Zapier, and Segment have become valuable assets. The Converger helps unify various esports systems and integrates services like matchmaking, player data, and audience analytics—making it attractive to companies eager to scale esports operations efficiently.
Game Company Costs
Understanding Customer Acquisition, Marketing and Retention costs in this sector
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Comparable Data: Major gaming companies like Epic Games, Tencent, and Riot Games spend heavily on acquiring new users, with CAC ranging from $50 to $200 per user.
Example: For a company like Epic Games (with a revenue of $5.76 billion in 2021), acquiring 1 million new players at a CAC of $100 would cost $100 million.
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Comparable Data: Companies like Epic Games spend 20%–40% of revenue on marketing. For example, Tencent, which generated $32.94 billion in gaming revenue in 2022, likely spent up to $6.5 billion on marketing.
By turning fans and players into brand ambassadors The Converger can substantially reduce marketing spend for games companies.
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Comparable Data: Retention is critical. Increasing retention by just 5% can lead to a 25%-95% increase in profits. Companies like Riot Games invest heavily in community-building and loyalty programs, showing the importance of keeping players engaged.
The Converger supports customer retention and loyalty via live events.
Reducing Costs
Understanding The Converger’s value in reducing costs
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Instead of relying on expensive digital marketing, The Converger turns players into ambassadors who grow the user base organically by organizing mini esports events.
Proof of Concept: Beta testers will show how community-driven growth can cut CAC by up to 50%. For a company spending $100 per player, this could bring the cost down to $50, saving $50 million per 1 million players.
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The Converger's community engagement drastically reduces the need for traditional marketing campaigns. Influencers and players drive organic growth through esports events.
Proof of Concept: By leveraging partnerships and engaging players, The Converger could reduce traditional marketing spend by 50%. A company spending $10 million on marketing could reduce this to $5 million.
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Community-driven engagement leads to better retention without costly loyalty programs.
Proof of Concept: Beta testers will prove that turning fans into ambassadors can boost retention, reducing churn and increasing lifetime value. A 5% retention boost could lead to a 95% increase in profits.
High-Value Proposition
Driving growth and maximising returns in the lucrative esports market
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The Converger is poised, post 1,000 beta testers, to prove scalability and market demand before revenue generation.
Exit Strategy: Once market validation is proven, early investors will benefit from a high exit multiple when larger gaming companies acquire The Converger to their cut costs in CAC, marketing, and retention and drive a new era of esports.
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Massive Savings: By acquiring The Converger, companies like Tencent, Epic Games, or Riot Games could substantially cut their CAC and marketing costs.
Scalability: The Converger’s model can expand globally, enabling companies to penetrate new markets whilst reducing traditional marketing investments.
Early Traction: Acquiring The Converger early gives access to a ready-made community model driven by influencers, reducing churn and ensuring long-term loyalty.
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CAC Savings:
Tencent Case: With $6.5 billion spent on marketing annually, The Converger could save Tencent $1.3 billion with just a 20% reduction in marketing costs.
Retention Boost:
Increasing retention by 5% could boost profits by up to 95%, adding millions in long-term revenue from loyal customers.
Global Scalability:
The Converger's model is designed for global scalability. Large gaming companies could rapidly expand their ambassador network worldwide, reducing reliance on traditional marketing.
Conclusion
The Converger transforms how game companies tackle customer acquisition, marketing and retention, offering innovative solutions that enhance engagement and drive growth whilst driving a new era of esports.
The Converger presents early investors with a great, esports opportunity.
Our pre-revenue proof of concept, supported by 1,000 beta testers, influencers, and strategic industry partners, will positions The Converger to help game tech companies save millions by slashing customer acquisition and marketing costs, while building a deeply loyal and engaged player base. This not only drives long-term growth but also makes The Converger a highly valuable asset for acquirers, offering investors a profitable and swift exit opportunity.
The Converger is not only a game changer for esports but has equally brilliant uses within the wider global immersive tech market, a market valued at $29.12 billion in 2022, and projected to grow at a CAGR of 25.7% from 2023 to 2030.
The Converger can also be used by DIY film makers, designers and marketeers entering the virtual production market, a market that is projected to grow from $3.37 billion in 2024 to $10.07 billion by 2032, a CAGR of 14.7%.
The global experience economy is also projected to grow from $5.2 trillion in 2019 to $12 trillion by 2028, again The Converger can be used by Escape Room creators, Live Immersive Music Producers or Art producers looking to emulate the ABBA, Van Gogh or United Visual Artists high end immersive experiences on a budget.
As the wider creative economy is projected to reach $985 billion by 2023, contributing 10% of global GDP by 2030, The Converger’s potential to facilitate the production of seamless, affordable, immersive live events, not only in esports but across the growing immersive economy, make it an excellent investment.
But at its core, The Converger revolutionises the esports industry, offering an app that drives fan engagement, streamlines tournament creation, connects players and enhances immersive event experiences.
The Converger provides early investors with a rare opportunity to capitalise on the explosive growth of esports positioning them to achieve significant ROI in this lucrative market.
> /< The Converger
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Sources: Statista, Grand View and Allied Market Research