100 Thieves: The $460 Million Gaming, Entertainment & Apparel Company

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Hey Friends,

I sat down with 100 Thieves President & COO John Robinson the other day for a podcast and left the conversation feeling extremely impressed.

Esports have continued to shine throughout the pandemic. Viewership numbers are up, companies are making more money, and we even saw FaZe Clan go public, becoming the first billion-dollar publicly-traded esports organization in history.

But here’s why you should care.

Last year, Morning Consult conducted a study titled “The Sports Industry’s Gen Z Problem,” which confirmed a pre-existing belief that the younger generation of fans wasn’t leaving sports altogether; they were just transitioning to new ones.

For example, the list of favorite sports for adults looks a lot like you might expect — the NFL, NBA, MLB, NHL, College Football, College Basketball, and more.

But when you look specifically at Generation Z, their interests have shifted.

The National Football League was still the top dog, with nearly 50% of Gen Z respondents saying they are fans of the sport/league.

But 35% of Gen Z respondents also said they are fans of esports, which ranked higher on the list than college basketball, MLB, UFC, NHL, MLS, EPL, PGA Tour, and others.

Not only are gaming & entertainment organizations like 100 Thieves becoming more popular from a cultural perspective, but the way they operate is also fascinating.

These are venture-backed businesses — 100 Thieves has $130 million since 2017 — and their cap table is full of high-profile investors like Cleveland Cavaliers owner Dan Gilbert and entertainment industry legends Drake & Scooter Braun.

100 Thieves Fundraising History

• Seed Round: $10 million led by Dan Gilbert in 2017

• Series A: $25 million co-led by Drake & Scooter Braun in 2018

• Series B: $35 million at a $160 million valuation in 2019

• Series C: $60 million at a $460 million valuation in 2021

Esports is a big part of this, of course.

Matthew “Nadeshot” Haag founded the company after a successful career in gaming & content creation, and the LA-based company swears that its promise to fans is to always compete for championships.

100 Thieves Competing Teams

• League of Legends

• Fortnite

• Valorant

• Call of Duty

• Apex Legends

But the interesting part is that gaming is just one facet of their business.

100 Thieves also has a growing apparel business and a 15-person team of content creators that spend their day streaming on Twitch, making videos for YouTube, recording podcasts, and interacting with their millions of fans on social media.

The company hasn’t opened its books, but based on our conversation and the valuation — these businesses typically trade at +/- 15x revenue — it’s probable that 100 Thieves is currently doing $10 million-plus in revenue across all three of their primary business lines: esports, apparel, and entertainment.

President & COO John Robinson called the brand a “high-growth company” and mentioned that they had doubled revenue each of the past several years.

100 Thieves Revenue Breakdown

• Gaming: ~33%

• Apparel: ~33%

• Entertainment: ~33%

That ability to diversify revenue streams and financially arbitrage their deep connection within today’s culture has led to an influx of interest in the business.

The company recently made its first acquisition, buying gaming peripheral company Higround. That acquisition, along with the $60 million that they just raised to fund organic growth, will continue to propel the business towards a 10-figure valuation.

But my guess is that this company will eventually be worth much more than that.

The generational shift occurring between traditional sports to esports can no longer be ignored. These companies are changing the way consumers act, the way legacy brands advertise, and flipping the entire business model of traditional sports on its head.

“We’re a little bit like the Lakers, and we’re a little bit like Barstool Sports, and we’re a little bit like Supreme,” says 100 Thieves President & COO John Robinson.

Of course, I’m biased, but my entire conversation with John Robinson is epic.

He walked me through what it was like raising money from Dan Gilbert, Drake, and Scooter Braun. We talked about their plan to double revenue next year, how they will continue to diversify revenue streams, and even when they might potentially go public.

Listen to our entire conversation here.

I hope everyone has a great day, and we’ll talk tomorrow.

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THE JOE POMP SHOW: My conversation with 100 Thieves President & COO John Robinson is live!

The LA-based gaming, entertainment, and apparel company recently raised $60 million at a $460 million valuation and counts Dan Gilbert, Drake, and Scooter Braun as investors and board members.

In this conversation, we discuss:

• Raising $130 million from VCs

• How they reached a $460 million valuation

• Why Dan Gilbert, Drake, and Scooter Braun invested

• Their plan to diversify revenue streams

• Organic growth vs. acquisitions

• If they want to go public anytime soon

Listen, subscribe, share, and enjoy!

You can also watch the YouTube video below.