Super League Gaming raised $25 million in an initial public offering on Nasdaq. But shares in the opening round have fallen 12.3 percent from $11 a share to $9.64 a share.

That’s a pretty poor reception, and it suggests that Super League Gaming isn’t going to defy gravity. The IPO market for tech companies has been weak for the past four months, thanks in part to trade and economic jitters. While most startups in gaming and esports have opted to raise venture funding, Super League Gaming went straight for the IPO, even though it is a young company started in 2014.

Super League Gaming holds local competitions for games like Minecraft and League of Legends in theaters, cafes, and even Topgolf entertainment centers. It has been called the Little League of esports, and it’s clear why the company hoped it could ride to an IPO on the popularity of esports, which market researcher Newzoo expects to be a $1.7 billion market by 2021.

Steve Cohen (left) of AEG, Ann Hand of Super League Gaming, and Dean Takahashi of GamesBeat.

Above: Steve Cohen (left) of AEG, Ann Hand of Super League Gaming, and Dean Takahashi of GamesBeat.

Image Credit: Milken Institute

But in this case, the company’s financial results are pretty poor. According to its filing with the Securities and Exhange Commission, Super League Gaming reported a loss of $13.1 million on revenues of $639,744 for the nine months ended September 30, compared to a loss of $11.0 million on revenues of $73,256 for the same period a year earlier. For the full year, Super League gaming reported losses of $14.9 million in 2017 and $12.3 million in 2016.

In the filing, the Santa Monica, California-based company said, “Our recurring losses from operations, accumulated deficit and cash used in operating activities raise substantial doubt about our ability to continue as a going concern. We cannot predict if we will achieve profitability soon or at all.”

In 2018, Super League Gaming raised $15 million in a third round of funding from Nickelodeon, DMG Entertainment, and Tampa Bay Lightning owner Jeffrey Vinik. To date, it has raised $28 million since its founding in 2014.

The company is led by Ann Hand. The stock is trading under the symbol “SLGG.”