Midnite nets $10m in Series B funding round
UK challenger brand sets its sights on upper reaches of the market after fresh backing from industry VCs including Discerning Capital and the Raine Group
Midnite has raised $10m (£7.6m) in a Series B funding round as the UK challenger brand said it is aiming to become a tier-one operator in the market.
The latest capital raise was led by Discerning Capital, the Raine Group and Play Ventures, while Venrex and Big Bets also took part.
The $10m injection means the operator, which started life as an esports betting-focused brand, has raised more than $35m.
In February 2022, the business secured $16m in its Series A round, which was led by the returning Raine Group.
Discerning Capital partner David Williams will also take a seat on the company’s board following the funding round.
Las Vegas-based Discerning Capital was co-founded by Williams and Davis Catlin and previously invested in US Integrity and Bayes Esports.
The funding round caps a significant few weeks for Midnite, with the operator having launched its first TV ad last month.
The company also secured sponsorship packages for the World Snooker Championship and with Sky Media.
Midnite’s growth in recent years has been rapid since being founded by Nick Wright and Daniel Qu in 2018.
Over the past 12 months, headcount has risen from 60 staff to 110, including adding top talent such as former Sky Bet exec Zach Amin as vice-president of sportsbook.
Wright said: “We’re thrilled to have the support of some of the best investors in gaming. This capital enables us to hit the gas and accelerate our growth strategy while continuing to build gamechanging products.
“Our product-centric approach is what has got us to where we are today, and we will continue to place the experience of our players as our highest priority. We have product foundations and velocity that no operator has in the UK market.
“Our goal is to disrupt the UK betting market and become a tier-one operator with a challenger brand platform for a new generation of players. With this backing, we can move faster, be bolder and continue to bring fresh, exciting experiences to the market.”
Williams added: “As investors focused on the global gaming industry, we are incredibly excited to partner with the Midnite team who have built one of the most compelling challenger brands anywhere in the world.
“The company’s continued growth and marketing efficiency validate the company’s unique positioning in its home market of the UK and its broader status as a best-in-class emerging operator globally.”