Global private equity firm CVC Capital Partners has agreed to invest in Chess.com, the world’s largest online chess platform.
The investment comes through CVC Capital Partners Fund IX and adds CVC to a roster of institutional backers that includes General Atlantic, which first invested in Chess.com in 2022 and will retain its stake. Entertainment and sports giant Endeavor/WME and venture firm Flashpoint are also existing shareholders.
CVC cited its experience investing across sports, video games, and community platforms as part of its rationale for the deal. The firm, however, did not disclose the size of its stake or the financial terms of the transaction.
Erik Allebest, Founder and CEO of Chess.com, said, “Twenty years ago we set out to build a space for people who love chess. We see CVC as an incredible partner, who alongside General Atlantic, can help us continue driving this same mission into our third decade. Chess belongs to billions of people around the world. Our job is to keep building something worthy of their trust and support.”
Nick Clarry, Managing Partner and Head of Sports, Media & Entertainment at CVC, said, “Chess is a game loved by many people and culturally important to many communities around the world. It is a privilege to join Erik and the team at Chess.com as custodians for this special game as they continue their journey to improve the platform for players and fans worldwide. CVC has built an appreciation of and relevant experience as investors in global community platforms over the last 25 years – in sports, video games and live events – that we look forward to contributing to the future success of Chess.com.”
Chess.com has grown into the dominant force in online chess, with over 250 million registered members and 10 million daily active users. The platform offers live gameplay, puzzles, lessons, game analysis tools, tournament coverage, and an extensive library of courses. It employs more than 650 people, all working remotely. In fact, it is also set to be featured in the inaugural Esports Nations Cup (ENC) in Riyadh later this year following a successful integration at the Esports World Cup (EWC) circuit.
The company was largely bootstrapped by co-founders Erik Allebest and Jay Severson, who scaled it to approximately $150 million in annual revenue before taking on outside investment to fund acquisitions, including the 2022 purchase of Play Magnus, and international expansion. Chess.com crossed the $1 billion valuation mark in 2023.
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