According to this SEC Form D Filing from September 13th, esports organization Cloud9 is raising a total of $25 million in capital, with $19.7 million already secured.
Form D is a filing with the SEC that allows companies under Regulation D or Section 4(6) exemption to offer stock to finance businesses without doing an IPO. Cloud9 has not made any public statements about this financing.
Who: Founders Fund Partner Brian Singerman will be joining the board. It is not noted whether the investment is coming from the San Francisco based venture capital firm or from Brian personally.
Founders Fund has made notable investments in companies like Airbnb, Postmates, SpaceX, and Facebook.
Why they're raising: With Cloud9 participating in both the NA LCS franchise ($10MM) and Overwatch League (~$20MM), it's reasonable they needed to raise additional capital to pay the franchise fees as well as expand infrastructure.
Why this is interesting: This is one of the largest financings in esports that has been disclosed to public. Typical VC firms like Founders Fund require a range of 15% to 25% in equity ownership at each round. If the firm is the one leading this round of financing, this could put Cloud9's value at over $100 million.