It has been revealed that the legendary esports organisation, Heroic, is in dire need of funding, and it absolutely must secure a hefty injection of cash ahead of the summer. Recently, an ‘extraordinary general meeting’ was held at the firm in an attempt to rouse investors, but reportedly, that meeting failed in its goal. On March 27th, another desperate call will be held, with the ultimate goal of raising ‘between NOK 8 million and NOK 15 million’, which is equivalent to around $1 million.
In January, Heroic’s board of directors stated that the organisation needed an influx of cash equalling around $7 million by ‘the end of 2025’ in order to survive. However, despite the talk of financial struggles and the need to raise exorbitant funds, no indication has been given to highlight what’ll happen if Heroic fails to secure the investment. But, given the current macroeconomic climate and the fact that countless organisations are either making layoffs or collapsing entirely, it doesn’t bode well for Heroic.
What’s The Future for Heroic?
Image Credit: Heroic
Heroic is one of the best CSGO teams in the business. Since emerging onto the scene in 2016, the Danish and Norwegian organisation has enjoyed a strong presence, and in recent years, it has gone from strength to strength. Last year, the organisation secured the top spot at the BLAST Premier: Fall Finals, and within the space of just a few months, the squad stood a hair away from snatching the trophy at both IEM Katowice and IEM Rio. Recently, Heroic has found huge wins at the Pinnacle Cup, ESL One, and the ESL Pro League.
Elsewhere, the organisation fields teams in iRacing and Rainbow Six Siege. In February, Heroic withdrew from PUBG esports, effectively shutting down that side of the business. There’s still a strong competitive spirit existing at the heart of the org, particularly in terms of its CSGO operations, which are driven by some of the best CSGO players in the world.
In a statement published after the failed meeting, it was revealed that:
‘… the Company requires further capital and liquidity both in the short term and longer term, to meet its running obligations and to secure the continuing operatiors of its business.’
It hasn’t explicitly been stated what’ll happen if the funds aren’t secured, but using that line as a guiding principle, it becomes quite obvious. If Heroic cannot secure ‘further capital and liquidity’, then it cannot ‘meet its running obligations’, and therefore, it’s likely that the organisation will shut down its operations or make mass layoffs.
At the moment, there are countless layoffs occurring across the gaming and esports industry. Recently, EA took to the airwaves to announce the closing of an office that made 200 staff redundant.
Let’s hope Heroic won’t be next.
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