binarypublish- The gaming technology start-up, Allstar, has successfully raised $12 million in a series A funding round, led by venture capital firm Drive Capital. Previous backers include Mark Cuban and members of the New York Angels.
- Allstar, which was created by former professional gamer and CEO Nick Cuomo, makes it easy for gaming enthusiasts to share their gameplay clips on various social networking sites, including TikTok and Discord.
- Cuomo identified the need for a tool to simplify the process of creating and sharing gameplay clips from his experience as a professional gamer. He wants Allstar to cater to all gamers—from casual to professional—by removing barriers to creating, editing, and sharing gaming content.
- The start-up currently integrates with four popular gaming titles—Counter-Strike 2, Dota 2, League of Legends, and Fortnite—with plans to expand its support to additional games, including Rocket League and PUBG: Battlegrounds in the future.
- Most of Allstar’s revenue comes from its three-tier subscription model, offering varying levels of usage and additional features. The rest comes from providing marketing technology services to brands looking to engage with the gaming community.
- The new investment will be used to further develop the platform, support integration with more games and game developers, and add creator tools.
The global gaming industry is seeing steady growth, with projected spending on video games to reach $184 billion globally, a 0.6% year-over-year increase. The number of worldwide gamers is expected to reach 3.38 billion in 2023, marking a 6.3% year-over-year increase. Content creators play a vital role in attracting large numbers of players to popular games.
There’s a growing need for companies like Allstar as content creators look for ways to diversify their revenue sources and avoid relying too heavily on any single platform. This need has become more pronounced after Amazon-owned Twitch implemented changes to its monetization policies—changes that haven’t been well-received by the gaming community.
Allstar’s growth plans include hiring more people, integrating with more games, and adding creator tools. According to current statistics, Allstar boasts 1.5 million monthly active users and 550,000 monthly creators uploading 3.2 million clips per month.
