INVESTMENT OPPORTUNITY

Opportunity to invest in the eSports team HELLRAISERS

Why invest in eSports now? Stayed in Top 16 World CS:GO teams for 3 years.
• eSports is a rapidly growing modern economy, expected to grow
from $900 million in 2018 to $1,600 million in 2021 (GAGR +27.4%)
Where are we now?
2nd round of end of 2020
• attracting global brands which make huge investments in the
eSports industry through sponsorship or direct investments in teams Hellraisers
1st round of
investments
investments
Expected
value increase
incorporation now
• potential increase in eSports companies` capitalization by more than
100% in the next 3-5 years 2017
Revenue: $ 532k
Valuation: $ 2,130k
Revenue: $ 1,683k
Valuation: $ 6,700k
2014 Revenue: $ 220k
Valuation: $ 870k
Recent purchases of eSports teams/organizations in CIS: Why we seek investments? There are several perspective
options to increase the company`s value.
$120
$ 120 M
M >6x Revenue
We offer the opportunity to invest in the company for:

$5.0
$ 5.0 M
M ~5x-6x Revenue Options
Investments needed
(2018 – mid 2020)

Recent investments in eSports teams: 1. Company relocation to EU/NA, new $ 900 k

gaming house + New rosters (30% equity)
2. Only new rosters (PUBG and/or $ 500 k
Fortnite teams) (19% equity)
$ 3.1 M $ 15.7 M $ 25.0 M Rumored: $35 M

Sources: 1. corp.mail.ru
2.esportsobserver.com
3.cybersport.ru
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Why invest in eSports?
eSports is a rapidly growing modern phenomenon
In 2018, the global eSports economy will grow to $906 million, In 2018, eSports enthusiasts* will reach 165 million,
a year-on-year growth of +38.2%, with the majority of However, with occasional viewers, the total audience will
revenue streams coming from sponsorship and advertising. amount to 380 million. The average eSport fan is much
younger than in traditional sports.
+27.4% +14.4%
GAGR Esports Occasional GAGR
2018-2021 2018-2021
enthusiasts viewers

+13.8%
+19.3% YoY 307 M
+38.2% YoY
YoY
+33.0% $ 1,650
215 M
YoY M 192 M
$ 906 160 M
$ 655 M 250 M
$ 493 165 M
M 121 M 143 M
M

2016 2017 2018 2021 2016 2017 2018 2021

40% 19% 18% 13% 11% 27% 52% 21%

Media Game Merchandise 10 -20 21-35 36-65
Sponsorship Advertising rights publisher fees & tickets years years years

Source: Global Esports Market Report 2018 *enthusiasts – people, who watch eSport at least once per month
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 Other major eSports
Top teams get the majority of their income from sponsorships sponsors

Teams Sponsors

5
 Major investors are trying to get into eSports
May 2018 February 2018 December 2017 November 2017 October 2017 August 2017

Pool of investors Jerry Jones and John Goff Pool of investors Hersh Family Investment

Investors:
European investors, Jerry Jones – owner of Private equity firm
private equity firm co- the largest mobile World Wrestling
incl. Olivier Delcourt – Dallas Cowboys (a specializing in buyouts, mid
founded by NBA hall of operator in Russia and Entertainment,
president of Dijon FC professional American to late stage growth, and
famer Yao Ming CIS Beverly Hills Sports
football team) special situations.
Council and other

Invested in Invested in Acquired Acquired Invested in Invested in

EDward Gaming Team Vitality Gambit Esports Complexity Gaming Cloud9 EnVyUs

$ 15.7 M $ 3.1 M $ 5.0 M not disclosed $ 25.0 M Rumored: $35 M

LoL, CS:GO, PUBG LoL, Heartstone, PUBG LoL, FIFA, CS:GO, Dota 2 Dota 2, CS:GO, Hearthstone LoL, CS:GO, Overwatch, PUBG LoL, CS:GO, Overwatch

Source: cybersport.ru
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Contracts with players are valuable assets

Zeus STYKO
Daniil Martin
Teslenko Stick
Gambit NaVi HellRaisers Mousesports
eSport $100 USD k $50 USD k

GuardiaN Crush
Ladislav Igor
Kovacs Shevchenko
NaVi FaZe Clan Pro100 Vega
Rumored: $150-200 USD k Rumored: $50-100 USD k
Squadron

Full CS:GO team

k0nfig Christian Wineke
HObbit cajunb René Borg
Abay Gade Niklas Geid
Khasenov OpTic
Snappi Marco Pfeiffer
Tengri Gambit North JUGI Jacob Hansen
eSport $100 USD k
Gaming
Rumored: $850 USD k

Source: cybersport.ru
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 Most watched games on
Top games attract huge audiences and prize money Twitch in May 2018, hours

Top eSports Twitch watch All-time prize

Players Tournaments
games time, hours* money

979 M $ 53.5 M 5,447 2,044

657 M $ 2.4 M - -
#1 141 M
563 M new game - -

441 M $ 142.2 M 2,519 927

390 M $ 54.4 M 9,809 3,250 #2 80 M

Recent news:
1) Epic Games will provide $100M in prize money for Fortnite esports in 2018-2019 (source: 3)
2) PUBG’s first major esports tournament kicks off this summer a $2 M prize pool (source: 4)

#3 42 M
Sources: 1. sullygnome.com 3.esportsobserver.com
2.esportsearnings.com 4.polygon.com
* total hours during Apr 2017 – May 2018
- games released in 2017
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How the industry works
How the industry works
Overview of the eSports ecosystem

Games Developers & Publishers

Players/ League Operators/

Distributors Audience
Teams Content Producers

Brand Partners & Advertisers

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eSports teams have three main value sources

1 Revenue from sponsorships

and player transfers Text Here

4x
revenue
6x-8x
revenue 3 Team audience

Company
value
Text Here Text Here

2 Results/
Tournament winnings

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Entering the eSports market with
HellRaisers
 Prize Prize
Place Tournament Location
Invest in a world-class eSports team pool won
2018
2 Moche XL Esports Lisbon $50,000 $15,000

2014 Operating since 2014

HQ — Ukraine
2 DreamHack Open Tours 2018

11 Bets.net Masters: Season 1

Tours
Kiev
$100,000
$100,000
$20,000
$50,000
Incorporation — Cyprus 3-4 V4 Future Sports Festival Budapest €500,000 €50,000
2017
5-6 ESL Pro League Season 6: Finals Odense $750,000 $45,000

Filed an application for trademark registration 1 FCDB Cup 2017 Minsk $40,000 $20,000
6 ESL Pro League Season 6 - Europe Online $125,000 -

3 StarLadder i-League Invitational #2 Shanghai $100,000 $15,000

Have a dedicated and fast-growing fan base 2 DreamHack Tours 2017 Tours $100,000 $ 20,000
StarLadder i-League StarSeries
3-4 Kiev $300,000 $ 25,000
Season 3
2016
European Minor Championship 2017
420,000 subscribers 325,000 visits per year 2 - Atlanta Bucharest $50,000 $ 15,000
180,000 subscribers
2 DreamHack Tours 2016 Tours $50,000 $ 15,000

Stayed in Top 16 World CS:GO teams for 3 years 1

ESEA Season 21: Premier Division -
Europe Finals
Leicester $20,000 $ 10,000
COACH
1 Copenhagen Games 2016 Copenhagen € 30,000 € 17,000
PGL European Minor Championship
1 Bucharest $50,000 $ 30,000
2016
2015
2 CS:GO Champions League Season 2 Online $50,000 $ 15,000
1 Acer Predator Masters Season 1 Krefeld $40,000 $ 20,000
JOHNTA ANGE1 BONDIK WOXIC DEADFOX ISSAA 3 ASUS ROG Winter 2015 Helsinki $25,000 $ 4,000
Ukraine Ukraine Ukraine Turkey Hungary Jordan
3-4 DreamHack France 2015 Tours $40,000 $ 3,000

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Managed and coached by a highly-qualified team with 10+ years of experience in eSports
CEO
Oleksii Kucherov
▪ Professional Counter-Strike player 2004-2012
▪ Since 2015, operational and finance director of
HellRaisers
▪ As an analyst, has a deep understanding of CS:GO

CMO CS:GO Sport Director/Coach

Oleksii Slabukhin Ivan “JONHTA” Shevtsov
▪ Huge eSports fan ▪ Professional Counter-Strike player 2006-2012
▪ Studied marketing in universities in Austria, the ▪ Since 2014, has coached teams in CIS, since 2016
USA, and Ukraine has coached HellRaisers
▪ Has worked for HellRaisers since 2016 ▪ Has coaching experience both with Russian- and
English speaking players

SMM department Team manager

Chief Sales officer
Video production Tomas Icso
department ▪ Has 9 years of sales experience in eSports market Team analyst
▪ Has a contact base of more than 40,000
companies
Editorial department ▪ Has worked for HellRaisers since 2016 Team captain and players

Graphic artist

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Development opportunities with
HellRaisers
There are two main ways to increase HellRaisers’s value
Investment:
Relocation and new gaming house
+ new rosters $ 900k
▪ Increase revenue from sponsorship and media
rights sales Increase in revenue
from sponsorship
▪ Access to an international eSports audience
and player transfers
▪ Organizing a place for professional team training
and content creation

Investment:
4x
revenue
6x-8x
revenue
Only new rosters
(PUBG and/or Fortnite team) $ 500k Increase in team audience Increase in company
capitalization
▪ Games popularity and audience growing rapidly
▪ Large prize pools for future championships have
been announced
▪ Contracts with players are cheaper than for other
Better results at
more well-established games
tournaments

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Relocation would have the greatest effect on the company`s value
Road map
And here`s why :
Preparing of
Office staff
Preparing documents office and
eSport companies’ valuation is higher in Western Europe hiring
gaming house
and North America, than in CIS.

Increase in revenue from sponsorship and sales of 6 month

media rights.

Access to an international eSports audience and sponsors. Total costs structure in the case of relocation and
new roster signings:

Eastern Western North

2017 Europe Europe America CS:GO 67%
Administrative
28% staff salary
Enthusiasts, M 11.9 22.6 24.8 Rosters
58%
eSport revenue, M $ 77.2 $ 151.3 $ 256.6
ARPE $ 6.5 $ 6.7 $ 10.4 Fortnite 17% Office, gaming
10%
house and other
PUBG 16% 5%
expenses
Marketing
expenses

Source: Global Esports Market Report 2017

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Appendices
Appendix 1. eSports team Canvas Business model
Key partners
▪ Tournament organizers
▪ Streaming platforms
▪ Betting companies
▪ SKINS related web-sites
Key activities Value
▪ Participating in proposition
tournaments 1) For audience:
▪ Marketing and ▪ Winnings on tournaments
advertisement
▪ High-quality content
▪ Training of players
▪ Interaction
▪ Content creation
▪ Team merchandise
2) For sponsors:
Key resources
▪ Sale of advertising rights on
▪ Professional players the team’s audience
▪ Company employees ▪ Increased brand
▪ Financial capital awareness and brand
loyalty
Customer
relationship
1) Audience: depends on
results and content
2) Sponsors: depends on
results and audience quantity
and their enthusiasm
Channels
▪ Tournaments
▪ Streaming platforms
▪ Youtube, website
▪ Social networks
▪ Personal communication
with sponsors
Customer
segments
1) Audience:
▪ 16-35 years old
▪ Median and highly paid
▪ Male&Female
▪ Passionate about video
game competitions
2) Sponsors:
▪ Endemic eSports brands
(Logitech, AMD, nVidia)
▪ Betting companies
(Betway, bet365, Unikrn)
▪ Non-endemic brands
(Pepsi, RedBull, Audi)

Cost structure Revenue streams

▪ Salary and bonuses for the team and staff ▪ Sponsorship ▪ Transfers of players
▪ Marketing, business trips, equipment purchases ▪ Prize money ▪ Revenue from sales of team
▪ Purchasing/loaning and training of players ▪ Revenue from tournament merchandise
▪ Expenses of content creation organizers

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