New Mexico’s newest homegrown venture investment platform, GOS Capital, closed Oct. 1 on its first commitment to a local startup, pumping $27,000 into esports company Champria.
Although small, this first investment is one of five deals that GOS Capital expects to close on with local startups this fall, potentially reaching up to $150,000 in seed-level commitments by year-end, said GOS Managing General Partner Scott Goodman.
The investment platform, which Goodman began organizing in 2019, is starting small by design, allowing GOS to gain a track record before raising a formal venture fund next year. For now, Goodman is pooling commitments from individual investors for each new deal, with five people contributing funds to the Champria investment.
“We’re focused on early-stage companies, mostly at the seed stage,” Goodman told the Journal. “We’ll close on a second deal within the next two weeks, likely for about $35,000. I expect a few more investors to join in each new deal, allowing investment levels to grow.”
Goodman, 28, has racked up significant experience since 2015 as vice president and head of acquisitions at the Goodman Realty Group, a family business where he sources deals, leads due diligence and originates debt and equity.
After joining the New Mexico Angels investment group a few years ago, Goodman launched GOS to pump more capital into local startups, with nearly two dozen affiliated investors now participating in deals on a case-by-case basis.
GOS is, for now, a minority contributor in deals led by venture funds and other investors. But Goodman hopes to make it a lead investor in the future.
“There aren’t many local investors right now willing to take the lead,” Goodman said. “I want to position future GOS funds to fill that void. That can help New Mexico’s startup community a lot.”
Indeed, GOS is a minor participant in Champria, which has raised more than $500,000 to date, including an investment from the Arrowhead Investment Fund at New Mexico State University.
The esports platform went live early this year, providing the amateur video gaming community with an automated venue to recruit players, organize teams and arrange matches. Data analytics allow users to track and rate performance, said founder and CEO Zeke Chavez.
“It offers a centralized location for amateur-level teams to come together, visualize data and grow and improve,” Chavez told the Journal. “We’ve done more than 8,000 matches so far, with at least 20,000 players.”
Platform use is currently free, allowing Champria to scale up before launching a subscription-based model next year, Chavez said.
Globally, esports revenue climbed above $1 billion in 2019. This year, it attracted nearly 27 million monthly viewers, according to Insider Intelligence.
Goodman said he believes in the future of esports.
“That’s why I made Champria the first GOS investment,” Goodman said. “I believe it will grow very big.”