Nerd Street Gamers, a Philadelphia, PA-based esports infrastructure company building the Localhost that house leagues, training camps, tournaments, and showcases on professional-grade equipment, completed a $12m Series A financing round.
The round was led by retailer Five Below, Inc. (NASDAQ:FIVE) with participation from existing investors Comcast, SeventySix Capital, Elevate Capital, and angel investor George Miller.
As part of the deal, Five Below and Nerd Street Gamers will build 3,000 square foot Localhost spaces connected to select Five Below stores beginning with a multi-store pilot in 2020.
Based on learnings from the pilot, the parties will determine future rollout plans, which could include 70 or more locations over the next several years.
These esports experiences connect the gaming community through live, in-person events played on pro-level equipment.
Led by John Fazio, Founder and CEO, Nerd Street Gamers is a national network of esports facilities and events dedicated to powering competitive opportunities for gamers. The company promotes access to the esports industry, laying a national framework for esports talent development and gaming tournaments.
In addition to the Localhosts connected to Five Below stores, Nerd Street Gamers plans to build 50 larger regional and university-based facilities. Just last month, the company opened Localhost Huntington Beach, a 32,000 square foot regional facility, Localhost Wells Fargo Center in Philadelphia, a public gaming facility for pro sports, and announced Localhost Rowan University, one of many projects to bring professional-grade esports training facilities to universities across the country.