Betr nets $35m in Series A2 funding as US investors circle
Micro-betting startup co-founders Jake Paul and Joey Levy lead round of returning investors in second along with venture capitalist Roger Ehrenberg
Betr has closed a new Series A2 funding round, netting an investment of $35m (£27.5m) from both new and returning investors, which values the micro-betting startup at more than $300m.
It is understood Betr held a set of initial closings of the A2 funding round during Q2, with final closures expected to occur in Q3.
Investors co-leading this latest round of startup funding include IA Sports Ventures managing partner Roger Ehrenberg, as well as Eberg Capital and Fuel Venture Capital.
In the case of Fuel, the VC outfit has doubled its investment in Betr to a total of $20m.
Other participants in the funding round include both Betr co-founders Jake Paul, who invested via venture capital investment platform Anti Fund, and Joey Levy, who invested via a personal investment.
Returning investors include FinSight Ventures, Florida Funders and Aliya Capital Partners.
Betr CEO and co-founder Levy was bullish in his remarks when announcing the results of the funding drive, suggesting the firm’s business model could upset the applecart of the traditional US industry.
“I am thrilled to announce our Series A2 round of financing, which we opportunistically raised after successfully laying the foundations for Betr Gaming and Betr Media while validating some of our core theses,” the Betr CEO explained.
“Our ability to rapidly scale Betr Media’s audience, and then convert this audience to Betr Gaming at low-to-no CAC [customer acquisition cost], will enable us to have the best unit economics in the regulated real-money gaming industry, positioning Betr to create more value than incumbent operators over time,” Levy added.
Betr’s model targets reduced CAC through social media usage, user engagement and brand affinity, as well as a focus on responsible gaming.
“We have seen material validation of pillar one; we have demonstrated leadership and still have more planned with respect to pillar three, and we will be better positioned to validate pillar two after launching our two other real-money gaming verticals and V1 of Betr Betting on top of the recently acquired Chameleon platform,” Levy explained.
Levy also hailed the contribution of Ehrenberg, who he revealed had invested over 10x his pro-rata investment amount and Fuel Venture Capital in this funding round.
“I am grateful for the continued support of Roger, Fuel Venture Capital and many of our other great investors,” Levy added.
In addition to announcing the funding round, Betr has clarified its plans for the Chameleon platform, which it acquired from Toronto-listed company FansUnite in May for $7.45m.
The micro-betting startup has confirmed the platform will be used to launch the first version of the Betr Betting online sports betting product (OSB), which will include core, parlay, same game, futures and props betting.
In addition to bolstering Betr Betting, the Chameleon platform will also support the two additional real-money gaming verticals that Betr has said it plans to announce at a later date.