The journey of Philadelphia-based esports startup Nerd Street is a reminder of fragility of startups. The startup was founded by John Fazio, which once stood as a rising star in the esports industry. However, it faced a harsh reality when rapid growth suddenly turned into financial turmoil.
The passion of Fazio passion for gaming and technology gave rise to Nerd Street and initially was called N3rd Street Gamers back in 2016. The success was though short-lived as the partnership ended unexpectedly leaving Nerd Street struggling to stay afloat.
Fazio said that all existing investors walked away as the startup was no longer skyrocketing. The scenario was thereafter followed with a period of lawsuits, mounting debt and a fight to avoid bankruptcy.
The story of Nerd Street didn’t end there and survived with the backing of Founders Fund. It secured this September a $6 million funding round led by Konvoy Ventures. The company now is pivoting to a new model with the development and running of esports programs on college campuses.
The new chapter is of great hope and Fazio said that it would be naive to say that they are out of the woods. The road to recovery is not just about securing funds, but it is also about rebuilding trust with partners as well as customers.
Fazio added that the big lesson learned is that they counted the chickens before they were there.
The story of Nerd Street is far from over and it is now a tale of resilience as well as adaptation. As of now, it is a cautious step forward and proving that comebacks are possible even in the most challenging times.
