Brazilian esports organisation Los Grandes has partnered with investment platform DIVI•hub to launch a sort of ‘public offering’ of stocks for its fan partner programme.
The initial plan is to raise around $1m BRL (~£152,700) from investors, who will be awarded 15% of the programme’s revenue for three years after its launch.
Stocks will be traded through DIVI•hub, a company registered at the Brazilian Securities and Exchange Commission (CVM, from the acronym in Portuguese), which is the regulatory body for the local market. It is, therefore, authorised to issue stocks via the electronic participatory investment platform.
DIVI•hub works with stocks named ‘DIVIs’. Those interested in investing in Los Grandes’s fan partner programme will be able to acquire at least 50 DIVIs for the price of $500 BRL (~£76.35). Plans for higher investments, which grant higher benefits, are priced at 100 DIVIs for $5,000 BRL (~£763.50) and 1,000 DIVIs for $10,000 BRL (~£1527.35).
With over 9m followers on social media, Los Grandes’s revenue projection with the fan partner programme is $1.6m (~£245,390), generating an expected return of 20.77% per year. Predictions were made considering 0.41% of Los Grandes’ fan base would engage with the programme.
Esports Insider spoke with DIVI•hub’s CEO Ricardo Wendel regarding the project: “The thesis of receiving revenue from the engagement of such a big team, with over 9m fans, is a very unique opportunity in the market.
“We found it very interesting to bring in the power of engagement of this esports organisation and offer the opportunity even to investors that can burst the bubble. Any kind of investor, even those not necessarily engaged with esports but willing to enter this market, now can do so.”
Los Grandes’s co-owner Rodrigo Terron also told Esports Insider: “When we first met DIVI•hub, there was a very interesting connection between our goals, especially when we talk about engaging and making our community [a part of the organisation]. This fundraising will allow us to take an old dream from the paper: a robust partner-supporter program, in addition to sharing gains with our community.”
By relying on stocks, Los Grandes chooses a more conventional path in comparison to other esports organisations that have chosen blockchain platforms to launch fan tokens. For the funding to succeed, it will be necessary to raise at least two-thirds of the expected $1m BRL within 180 days. If the amount is not achieved, investors will receive the money back.