BETSPERTS Lands Another Seven-Digit Funding Round, Eyes LinkedIn Status
Posted on: October 18, 2020, 09:26h.
Last updated on: October 19, 2020, 11:27h.
BETSPERTS, a social media platform focusing on sports betting, said it recently closed its second round of seven-figure venture funding, bringing in several new investors in the process.
The Chicago-based company didn’t disclose how much it landed in the most recent seeding round. Earlier this year, the crowd-sourced app completed a funding round of more than $1 million.
With the investments in 2020, we have the opportunity to scale at a greater rate and capitalize on the rapid growth of our target market,” said BETSPERTS CEO and co-founder Reid Rooney in a statement.
Across seed, venture, corporate venture, and private equity rounds, venture-backed companies raised a combined $129 billion in the first half of 2020, indicating investors weren’t deterred by the coronavirus pandemic.
Good Timing, Big Comparison
Although COVID-19 could have been a hurdle for companies seeking venture capital, investors are willing to back companies in iGaming and sports wagering arenas based on compelling growth estimates – forecasts that are expected to grow as more states legalize one or both of the endeavors.
Last year, sports wagering was a $1 billion industry in the US. Even some of the most conservative analyst estimates project that figure will grow six- or seven-fold over the next five years, with more ambitious forecasts calling for sports betting and online casinos to be worth $20 billion or more by 2030.
Those forecasts coupled with BETSPERTS’ unique positioning in the landscape could make it an attractive destination for venture dollars. The firm doesn’t compete with gaming companies and sportsbook operators. Rather, it serves as a social media venue, offering free and subscription services where bettors can connect with each other, post bets, and follow handicappers.
“I could see BETSPERTS becoming the LinkedIn of sports betting,” said a product director at DraftKings.
Among the angel investors participating in the latest BETSPERTS capital raise are Numeria Capital, led by Jason Searfoss, and Bettor Capital, led by Dave VanEgmond.
Colorado-based Numeria provides financing to “small and middle-market companies, start-up accelerators, and venture capital funds.” The firm has investments in healthcare, lifestyle, and technology companies, among others.
The investment in BETSPERTS isn’t VanEgmond’s first rodeo in the sports betting space. He previously worked at FanDuel and Barstool Sports, where he was one of the architects of that media property selling a 36 percent stake for $163 million in cash and equity to Penn National Gaming (NASDAQ:PENN) earlier this year.
He also played a leading role in orchestrating FanDuel selling 60 percent of itself to Paddy Power Betfair for $500 million. VanEgmond was already a board member and BETSPERTS shareholder prior to the latest investment.
“I believe this capital will allow the company to continuing engaging and educating bettors across the country,” he said.