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Why CRCM Ventures is Betting Millions on Drone Racing

Why CRCM Ventures is Betting Millions on Drone Racing
Written by
Crypto Queen
Published on
December 13, 2017
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Drones are big business. In a few short years, they've gone from nerdy hobby to must-have holiday gift among consumers. Forecasts show the number of global drone shipments is set to nearly triple, from 10 million sold this year, to 29 million in 2021.

It's not hard to understand why. Drones are affordable compared to other new technologies, with many units priced around $50. Ease of assembly is a factor, too. Even higher-end models can be put together in under an hour by hand. Given that drones can take high resolution pictures and videos from angles that were not possible before, that's a lot of return for so little time and money.

Because the drone market is evolving, the public has seen a lot of exciting applications appear over the last few years. One that shows particular promise is drone racing, which since its humble beginnings in 2014, has exploded in popularity with numerous leagues and hundreds of chapters across the world.

The appeal of drone racing is multifold. As a brand-new sport, it lacks any history or tradition that might limit it to a particular geographic location, allowing it to have global appeal. The barrier for entry is extremely low compared to other motor sports. And it has instant allure for the fanbases of esports and Formula 1 racing, both of whom like thrilling, high-speed action.

Latest Model

If you tuned into the Drone Racing League's second season last year on ESPN, you saw a sport in full possession of its own identity. An intricately plotted out racecourse, replete with LED light strips, and three dimensional twists and turns that bring to mind a futuristic racing video game.

Each race has six pilots in control of identical drones, the newly released Racer 3 from DRL. The drone's ability to go from 0 to 80 mph in under a second gives races a kinetic intensity full of hairpin turns, 360 degree maneuvers, and sudden, catastrophic crashes, none of which are feasible in other racing sports where driver safety is a concern. Needless to say, an incredible amount of reaction time is required to shepherd these machines to the finish line.

A camera is affixed to drones, giving pilots a first person view through goggles or headsets, but the public can view the action this way, too. The experience is completely immersive, and "you feel as if you're actually flying," according to Drone Racing League founder Nick Horbaczewski.

Investing in the Futuristic

Drone racing's high-intensity, futuristic appeal has turned plenty of heads in the investment and sponsorship world. For DRL's second season on ESPN, the company raised venture capital funding of $12 million. The company raised a further $20 million to continue building the league, game and eSports tournaments for 2018 and onwards. An additional agreement has been signed with MGM Television to develop unscripted shows that explore the stories that happen outside of the race track, providing deeper insight for diehard fans and newcomers alike. And it's not only mass-media companies who are involved. CRCM Ventures, a venture capital firm that specializes in cutting-edge tech, has invested in the future of the sport.

With only two seasons under its belt, DRL has netted some high-profile sponsorships as well. Swatch has partnered closely with the league to promote the try-outs for the 2018 season. Simply by buying the $20 DRL Simulator on the computer game service Steam, anyone over 18 in the world can pilot the Racer 3 drone through simulations based on the real life DRL courses.

The tryouts run until January 15th, 2018, with the top players going on to compete in a live epsorts-style tournament in early February. The winner will receive a contract worth a cool $75,000 for the third DRL season. If you're not a seasoned drone operator, the software also has an in-depth tutorial that will tell you everything you need to know. This level of opportunity is unprecedented - you'd be hard pressed to think of other professional leagues you can join by training at home.

This low barrier of entry is one factor that makes the prospects for drone racing so exciting. It's not just the exhilarating action on display, it's the fact that the next champion could appear at any moment, from any country in the world.

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