David Beckham-backed firm becomes first esports company to list on London Stock Exchange

A company backed by David Beckham has become the first esports business to list on the London Stock Exchange, landing a valuation of more than £40m.

Guild Esports was founded in June and manages the careers of professional video gamers. It joined the public market today, in a move it said it was hoping would "provide new funds for the company’s expansion and long-term growth".

As part of the initial public offering (IPO), Guild said it had raised £20m. Mr Beckham will remain the fourth largest shareholder in the business following the float, with a 4.78pc stake. Other investors include Blue Star Capital and Toro Consulting.

The float mark the first time esports fans in the UK will be able to invest in teams of gamers via the public markets. 

Guild said it would be using funds raised from the IPO to recruit new players and expand into different esports "disciplines" over the coming season.

The company currently has teams competing in football franchise Fifa and Rocket League, a game which involves football and car racing. 

Players generate revenues through tournament prize money, sponsorship deals, merchandise and promotional tours and events.

Esports have been booming in popularity in recent years, with the global market estimated to be worth $1.1bn (£870m), according to games research company Newzoo. Audience sizes can be significant, with some esports competitions attracting more viewers than sporting events such as Wimbledon.

The pandemic has triggered even faster growth in viewing numbers as it remains one of a handful of sports to have been barely affected by lockdown restrictions. 

Last year, audience numbers for esports stood at 443 million, up from 134 million viewers seven years earlier.

Mr Beckham has previously spoken of the dedication of esports players, which he said he had seen "first hand".

Speaking at the launch event for Guild in June, he said: "I know that determination lives in our esports athletes today and at Guild we have a vision to set a new standard, supporting these players into the future."