A mutual fund focused on US online gambling has more than $ 50 million for his first fund.
Bettor Capital, founded by former barstool and FanDuel executive David VanEgmondHe announced details of the raise on Wednesday.
VanEgmond said the $ 50 million is only the initial close of the capital commitments, with a final target increase of $ 120 million.
Details on the Bettor Capital Fund I
The Company Fund I will focus on early stage investment opportunities in real money gaming software and technology. Investments will be focused on the US market and the B2B side of the sector.
Early stage investors in US sports betting have generally taken a “pick and shovels” approach to startups.
That means investing in companies that provide services to the giant operators rather than competing with them.
Knowledge of sports betting
For example, Bettor Capital announced its first investment last week in the supplier Data scrive. Data Skrive generates automated previews for sporting events that could potentially encourage the placement of bets.
“We honestly believe there probably won’t be another FanDuel or DraftKings so we’re not focusing on B2C,” VanEgmond told LSR. “We like the high-margin software companies in the B2B area, whose scaling does not require as much capital because they do not need huge budgets for customer acquisition.”
VanEgmond said online gambling has potential $ 50 billion market Annual sales until 2030.
“We can find innovative software companies in the supply chain of this industry and invest in them that are ready to enter this (totally addressable market) well. We also believe we can get the best deals as we are the only fund committed to this space, ”said VanEgmond.
New advisory board for Bettor Capital
VanEgmond becomes Bettor Capital von Jake Kleinerwho contributes to early-stage investment practice. directed US bank and was previously an investment professional at Vista Equity Partner.
In addition to the initial increase, Bettor Capital has also set up an advisory board that includes:
- Melissa Blue, Founder of iGaming capital
- Julie Haddon, former SVP of Global Brand & Consumer Marketing for the NFL
- Steve Kaplan, Co-owner of several professional sports teams including DC United and Swansea City
- Carl Sottosanti, former Executive Vice President and General Counsel Penn National Gaming
- Carl Vogel, former CEO of FanDuel
Editor’s note: Legal Sports Report’s parent company has a relationship with Data Skrive.