Sharp Alpha Advisors confirms $10m sports betting-focused fund
The venture capital firm invests primarily in early-stage gambling technology companies.
Sharp Alpha Advisors, has today announced the closing of its first $10m fund. The venture capital firm is set to invest in early-stage gaming technology, with a specific focus on sports betting.
Headed by Lloyd Danzig, the group has made 11 investments to date including the gambling exchange platform Prophet, the free-to-play platform PickUp and the motorsports fantasy betting operator GridRival.
“Now DraftKings has an NFT marketplace, and Barstool is delivering frozen pizzas, and Fanatics could eventually have one wallet where you can bet on sports, and buy tickets, trading cards and merchandise,” commented Danzig in an interview.
“That, therefore, means the total addressable markets for start-ups that are serving a DraftKings, or looking to get acquired by a DraftKings, is also much larger.”
According to a statement, half of the $10m fund will be spent on initial commitments, while the rest will be reserved for follow-on investments into promising portfolio companies.
The firm’s business strategy is predicated on two core beliefs. Firstly, that even the largest operators are still licensing technology instead of building proprietary platforms. Secondly, the total market size for sports betting will far exceed the size of just sportsbook operators alone.
Danzig added: “We are backed by some of the largest VC funds in the entire world, ones that everyone has heard of, and that’s important because that is what allows us to help guide our portfolio companies.
“Not just in the seed and Series A rounds that we’re participating in, but then hand off those portfolio companies to our backers who are the experts in Series B, Series C, IPO and beyond.”
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