North American esports infrastructure company Nerd Street has raised $6m (~£4.5m) in its latest funding round.
According to a release, $5m (~£3.75m) of the funding was led by venture capital firm Konvoy Ventures while the other $1m (~£750,905) is coming from ‘strategic investors.’
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The funds raised aim to enable Nerd Street to ‘grow its infrastructure business’ in addition to opening more collegiate Localhost venues across the United States. In 2023, the company opened its most recent Localhost venue at Rowan University.
The funding follows reports in 2023 claiming that Nerd Street was seeking an acquisition due to financial troubles generated by failing to pay players competing in its tournaments. A Digiday report earlier this month reveals that the company took a loan from Riot Games to compensate players and talent. This has since been paid off in full.
John Fazio, Founder and CEO of Nerd Street, spoke on the news: “There’s no sugar coating it, we went through a brutal two years in survival mode to get here.
“We couldn’t have asked for a better partner in Konvoy given their experience, network, and most importantly their passion for the industry. Together, we’re going to build something that amplifies the entire industry.”
Instead of returning to esports tournament operations, Nerd Street will focus on its collegiate verticals by opening venues at universities in North America. The company has revealed it has partnered with Temple University to host an esports programme at Philadelphia’s Localhost. In addition, its partnership with Maryville University will see Nerd Street run a youth summer camp initiative.
Nerd Street’s focus on its Localhost facilities looks to have gained traction. In September 2024, Nerd Street secured a partnership with PC peripherals manufacturer Higround.
