Juked.gg Launches Crowd Equity Fundraising Campaign

Online esports content portal Juked.gg on Thursday launched a crowd equity fundraising campaign via Republic.co to raise capital directly from the community. The minimum investment amount on Republic.co is $100 USD, and as of this writing, the campaign has already generated more than $27K with 232 days to go. Juked is hoping to generate $25K – $1.07M by May 1, 2021. The maximum valuation of the company at which the investments can convert is $8.5M. 

Juked CEO Benjamin Goldhaber explained why the company decided to turn to crowd equity funding: 

We faced significant challenges raising via VCs due to COVID-19 that made us much more bullish on the potential of crowd equity – the flow of capital nearly dried up for a few months, and in general, VCs were looking for surer bets (i.e. post-revenue companies). So this felt like a better alternative given the situation.”

Goldhaber added that Juked.GG  is “not foregoing VC entirely” and that the company is “in the diligence phase with a few traditional investors right now and if the right opportunity presents itself, we won’t turn down a warm intro.” 

The crowdfunding campaign offers a so-called “SAFE” security adjusted for crowdfunding, which is a concept created by seed accelerator Y Combinator called simple agreement of future equity (SAFE). Investors will not be granted voting, information, or inspection rights. 

The company will use this funding to implement its business plan, which includes a monthly subscription plan that gives access to exclusive content and in-app items; building out and implementing fantasy esports integration and gamification directly into Juked; and securing more partnerships and advertisers.

Investors will receive “early access to upcoming features and internal roadmaps, as well as direct channels to work hand in hand with the Juked team to give feedback and improve the product,” according to the company.

In a comment on the funding page at Republic.co, Goldhaber said that one of the goals for the company is to “implement monetization over the next two quarters” by converting 2.5% of its active users into paying subscribers of the premium product once it is available. 

Juked aims to be a one-stop destination for consuming aggregated esports content for a variety of popular titles such as Dota 2, Counter-Strike: Global Offensive, League of Legends, and more. This content includes live streams of competitions, news and editorial content, and original content and features to be implemented in the future.

In February Juked raised an $800K USD pre-seed round led by 500 Startups with participation from former Blizzard Entertainment execs Mike and Amy Morhaime, MyFitnessPal co-founders Mike and Albert Lee, RotoGrinders.com co-founders Cameron MacMillan and Cal Spears, Twitch streamer Ben “CohhCarnage” Cassell, UP2398 General Partner Alex Poon, CP Ventures General Partner Chris Sang, and Claremont Creek Ventures Managing Director Nat Goldhaber.  

Tobias Seck contributed to this article.

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