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How the Coronavirus Recession Will Impact Esports Startups

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For the past two months, esports has become the talking point of mainstream media. The COVID-19 global pandemic has canceled most sports events such as Formula 1, NBA, NFL, Olympic Games, and all soccer leagues as well.

Some pioneers in these sports are pushing for virtual competitions, such as the virtual NASCAR series that is being broadcasted over TV.

Nevertheless, esports is a part of the global economy and will feel the consequences of COVID-19 policies.

Kristalina Georgieva, the International Monetary Fund (IMF) managing director, assessed the current situation and warned us that the current global recession could be worse than the 2007-2009 one.

We’ve seen many reports stating that esports is immune to the Coronavirus pandemic, but that simply isn’t true.

Many subindustries that are part of esports are in trouble.

Competition organizers, venues, and esports organizations are dependant on merchandise, ticketing, sponsorships revenues, and media rights.

Because spectator events are all banned, some of them up to September, these subindustries face uncertain futures because their revenue streams are drying out. Additionally, many companies that are sponsors of esports teams have rebalanced their budgets, and maybe they’ve cut down on marketing, sponsorships, and partnerships.

One subindustry that didn’t lose out was the esports betting industry. Established websites like dota2-bets.com are thriving in these times of increased online tournaments. More people are staying home and betting on their website.

The current situation affects different subindustries differently, and in this article, we’ll only look at esports companies that are susceptible to the negative impact.

Esports Startups

Compared to other ecosystems, the esports one is rather young, and because of that, there is a large percentage of startups. Startups come in all shapes and sizes, which includes software development companies, hardware manufacturers, data providers, media outlets event organizers, and esports teams.

It’s a project-based company where an entrepreneur or a group of entrepreneurs is trying to develop a sustainable business model.

There are two main approaches to financing a startup: raising debt/equity and bootstrapping.

Most startups aren’t profitable straight away. Startup equity and debt are usually provided by investors in volumes that last a couple of months. Bootstrapping relies upon that the business will create revenues that will offset costs.

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When the startup shows the potential to turn profitable or exceed expectations, that’s where it usually gets another round of funding.

The current COVID-19 situation is increasing all the major points of startup failures. Those are usually too much competition, saturated markets, bad business ideas, outdated technologies, barriers to entry, and so on.

Management problems are also more visible during the pandemic, such as poor research and planning, changes in spending, wrong motivation, not identifying industry trends, and so on.

Rising from the Ashes

Some esports startups will fail during the COVID-19 situation. That is inevitable. But there are some great opportunities for other startups.

For example, esports, gaming, and game live streaming services are feeling a huge boost. Additionally, a crisis is a good opportunity for small startups to prove they are sustainable.

If they can show that, they just might get that funding that will change their lives forever.


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Haraka Haraka app to link customers with service providers

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A new App dubbed “Haraka Haraka” has today been unveiled in Kenya to help customers find the right service providers in their current location within a specified range of choice.

The platform was invented by three former Meru University of Science and technology students and with the app, they seek to make it easier for people to find services such as a plumber, retailers, shops and house agents that have been difficult to get physically.

The team, Mr Kelvin Muinde, Mr Pius Momanyi Nyachio and Mrs Naum Mutie said there are currently about 3,500 users who are potential clients and service providers on the platform who include carpenters, hairdressers, plumbers and mechanics, and more.

“We are taking away the burden of searching for experienced and reliable professional businesses in a hassle-free model to deliver critical services to individuals who are in need of their specific location,” said Pius Momanyi Nyachio who is the Marketing Manager.

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Mr Kelvin Muinde, who is the head of the project said the idea to start Haraka Haraka was initiated out of his observance of people having difficulty in finding a reliable service in an area that they are not well conversant with.

“The biggest challenge customers face is finding the right service providers at any area, mostly if you are not familiar, most people end up getting poor services that cost them time and resources,” he said.

To find any service or to register as a service provider, individuals are requested to first download the Haraka Haraka App on Google and register where later one can choose a range between 100m to 30km to find the service they are in need of.

The app also comes with an option of reviewing and rating a service provider which acts as an advantage to next service seekers enabling easy referrals to new clients.

‘’The registration to the app is free for both users and professionals,’’ said Mr Kelvin Muinde. The company’s aim is to hit 10,000 users by the end of this year. Ideally, they plan to have a maximum of 30,000 professionals on the platform.


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Haraka Haraka app to link customers with service providers

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A new App dubbed “Haraka Haraka” has today been unveiled in Kenya to help customers find the right service providers in their current location within a specified range of choice.

The platform was invented by three former Meru University of Science and technology students and with the app, they seek to make it easier for people to find services such as a plumber, retailers, shops and house agents that have been difficult to get physically.

The team, Mr Kelvin Muinde, Mr Pius Momanyi Nyachio and Mrs Naum Mutie said there are currently about 3,500 users who are potential clients and service providers on the platform who include carpenters, hairdressers, plumbers and mechanics, and more.

“We are taking away the burden of searching for experienced and reliable professional businesses in a hassle-free model to deliver critical services to individuals who are in need of their specific location,” said Pius Momanyi Nyachio who is the Marketing Manager.

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Mr Kelvin Muinde, who is the head of the project said the idea to start Haraka Haraka was initiated out of his observance of people having difficulty in finding a reliable service in an area that they are not well conversant with.

“The biggest challenge customers face is finding the right service providers at any area, mostly if you are not familiar, most people end up getting poor services that cost them time and resources,” he said.

To find any service or to register as a service provider, individuals are requested to first download the Haraka Haraka App on Google and register where later one can choose a range between 100m to 30km to find the service they are in need of.

The app also comes with an option of reviewing and rating a service provider which acts as an advantage to next service seekers enabling easy referrals to new clients.

‘’The registration to the app is free for both users and professionals,’’ said Mr Kelvin Muinde. The company’s aim is to hit 10,000 users by the end of this year. Ideally, they plan to have a maximum of 30,000 professionals on the platform.


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Balala wants investigation into alleged harassment at Ol Jogi launched – KBC

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Tourism Cabinet Secretary Najib Balala
Tourism Cabinet Secretary Najib Balala

Ministry of Tourism and Wildlife Cabinet Secretary Najib Balala has directed the Kenya Wildlife Service to commence investigations into the alleged harassment of a victim by private game ranchers at Ol Jogi Conservancy in Laikipia County.

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It is reported that the victim known as Mordecai Ogada in the company of his children was harassed on Saturday while driving on a public road in the conservancy.

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In a statement, Balala has asked for speedy investigations and findings to be concluded by Wednesday this week.

The CS added that no discriminations will be allowed to any Kenyan at any conservancy in the country.

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“The government of Kenya and my ministry will not condone any undue harassment or intimidation of Kenyans who are going about their normal businesses and enjoying their God given heritage by anyone,” said CS Balala.

He urged Kenyans to report any such incidents with facts for action to be taken.

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