Epic Games is one of the most successful games companies in the world and has more monthly users than Netflix! Many people are eager to invest in the company. Although Epic Games is not publicly listed on any stock exchange, it is still possible to invest. Here's a guide on how to invest in Epic Games stock in 2023. We'll cover Epic Games' product, where to find the stock, and the price of Epic Games stock.
Understanding Epic Games and Its Products
Epic Games is a US-based video game and software development company. Founded in 1991, Epic Games has developed many successful games, including the popular Fortnite franchise, which has around 400 million registered users as of 2023. The company is also known for its Unreal Engine, a powerful game engine that is used by many developers to create video games across multiple platforms.
Epic Games has been a huge success story and court documents revealed that its revenue is between $4 billion to $5 billion per year. In 2022, Epic Games raised funds at a valuation of $31.5 billion from strategic investors.
How to Invest in Epic Games Stock
Here are three options for investing in Epic Games:
Option 1: Direct Investment - Firms that Connect Sellers to Buyers
Firms such as SharesPost, EquityZen, and Forge Global offer opportunities to purchase shares in privately held companies. However, to invest in these private markets, you must be an ‘accredited investor’, which means you need to have:
a net worth of over $1 million (excluding your primary residence); or
an annual income of at least $200,000.
The minimum investment on these platforms is also substantial at $100,000 per investment, and the associated fees are often high. It is important to note that Epic Games shares are not currently available on these platforms.
Option 2: Direct Investment - Tokenfolio
Tokenfolio is a private market investing platform for seed to pre-IPO tech companies, including Epic Games. Tokenfolio's investing infrastructure makes it easier to enter investments by grouping investors which enables people to invest with reasonable minimum investments. Tokenfolio also has built-in secondary markets which makes it easy to sell investments, which means you don't have to wait for the company to go public in an IPO to realise potential investment gains. This option offers a more accessible way to invest in Epic Games.
Option 3: Indirect investments
Epic Games is owned 40% by Tencent Holdings. You can invest indirectly by acquiring Tencent stock. For this, you’ll need to buy shares over-the-counter with a stock broker. It’s worth noting that Epic Games is just one of Tencent’s investments and as such Epic Games’ performance is likely to only have a small impact on Tencent’s valuation.
Additionally, you can invest in exchange-traded funds (ETFs) like the VanEck Video Gaming and eSports ETF or the Global X Video Games and eSports ETF. These provide a more diversified exposure to the gaming industry. However, it's important do understand the strategies and holdings of each ETF you are investing into.
Epic Games Stock Price
The company’s first investment round occurred in 2012, when Chinese tech giant Tencent invested $330 million for a 40% stake in the company, valuing Epic Games at $825 million. Epic Games last raised $2 billion in a funding round in 2022, with Sony Group and LEGO Group owner Kirkbi each investing $1 billion. The company hit a private valuation of $31.5 billion.
Epic Games Stock Symbol
Epic Games does not have a stock symbol because it is not listed on any global stock exchange. However, the stock ticker EPIC is not currently taken in the US.
Key takeaways
The article discusses the opportunities and challenges of investing in Epic Games stock in 2023. As one of the most successful video game and software development companies in the world, Epic Games stock is in high demand. Epic Games is not yet a publicly listed company, so investing is currently only possible through certain platforms or indirect investment. Tokenfolio is the most accessible of these platforms and the only one to offer built-in secondary markets for easy liquidity. Indirect investment is also possible by acquiring Tencent stock or investing in gaming industry ETFs.
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