Image Credit: Sentinels
Sentinels seeks investors through crowdfunding to stay afloat.
Sentinels might not be able to operate after five months if they don't secure enough funding. The organization drew a huge amount of attention from the esports community after its financial status was made public.
Sentinels saw their potential within the VALORANT scene, so for the last two years, they dedicated a significant amount of funds to maximize that momentum. They have amassed 31 million followers in recent years making them one of the fast-growing esports organizations.
They felt the need to catch up to long-standing esports organizations like 100Thieves and Cloud9. A huge amount of their capital went to business strategies that address bridging that gap. This move might be the culprit for Sentinel’s overspending.
In their financial report, it’s been revealed that they are currently burning $695k per month for players, staff, and content creator salaries. Funds required to acquire their merchandise inventory are also included in the said expenses.
What shocked fans was the estimated operational period remaining for Sentinels after they acquire maximum funding. Sentinels said that they will be able to operate for four to five months given the current burn rate. If they are unable to raise additional capital, their operation period is down to two to three months.
According to their financial report, the organization experienced a loss of $8.2 million in the most recent fiscal year.
Rob Moore, founder and CEO of Sentinels, stayed optimistic in an interview and told fans more information about their financial status. Rob shed light on how Sentinels is poised to be profitable in the future. He added that this is a great opportunity for fans to succeed alongside the organization.
“The key to that sentence is giving people full disclosure. If the crowdfunding only raised this much money and Sentinels were not able to raise capital from their current investors and any outside equity source, then this is how much capital they would have. It doesn’t say that the current investors aren’t going to continue to fund, it says here’s what would happen,” he clarified.
Sentinels launched crowdfunding through StartEngine, an equity fundraising platform. Fans can invest a minimum of $299.25 until November 2, 2023. The price per share is valued at $3.15. The funding goal is up to $1.23 million.
As of this writing, Sentinels has raised $67,751.27 with 54 investors on board. Investors have access to the organization’s behind-the-scenes. They will be able to contribute input in organizational strategy, participate in private owners' town halls, and give design input for their merchandise.
