Paddy Power-backed ASX triggers new €750,000 crowdfunding campaign

Paddy Power-backed sports betting exchange platform startup American SportZ Exchange (ASX) has ignited a new €750,000 crowdfunding campaign with the aim of jumpstarting US growth.

In order to attract funding, new investors are being offered a 25% discount on the share price of the company at the time of its Series A fundraising round, through a financial instrument called a SAFE (Simple Agreement for Future Equity).

This mechanism was used by ASX in two? previous funding campaigns, which were both oversubscribed.

At the time of writing, the campaign has raised €411,450, representing 55% of the funding target, from 75 new investors, with the drive due to end in eight days’ time.

The crowdfunding campaign is being overseen by Spark Crowdfunding, which was responsible for securing more than €2.2m in funding through two previous funding rounds last year.

It marks the final funding round ahead of the larger Series A fundraising drive, due to take place within the next six to nine months.

During its first funding round in May 2021, the firm raised €632,485 from a total of 188 investors, which represented 126% of its initial target of just €500,000 based on a business value of €4.5m and a 10% equity stake.

A second funding campaign later in the same month secured €536,812 (£462,113) in investment in less than 24 hours from a total of 140 investors, representing 107% of its target, despite the campaign being scheduled to run for another 33 days.

ASX was founded by Irish bookmaking veteran Paddy Power who serves as the firm’s president.

Power, the son of Paddy Power’s co-founder David Power, who has previously served as brand ambassador and head of communications for the Dublin-based bookmaker, invested €50k (£43,000) of his own cash in the second funding round.

ASX is a virtual stock market for US-focused sports teams and players where users generate income by speculating on their real-life performance, with the firm taking a small commission.

Trading will be offered on the platform under the ASX brand and to other brands on a white-label agreement under a revenue share model.

In tandem with the fundraising drive, ASX Sports has also launched its new peer-to-peer contests, with the firm suggesting it is the first fantasy sports platform to have fan contests running live during games.

Players can create their own contests, competing for real money or “sportzcoins”, while sporting celebrities, esports gamers and social media influencers can monetise their own followers and streamers.

ASX has confirmed funding will be used to accelerate the firm’s entry into the US market, where it is positioning itself as an independent platform available for integration into existing DFS providers and sportsbooks.

The ASX founder and president outlined the firm’s trajectory of product developments.

“The launch of peer-to-peer games on ASX demonstrates our dedication to driving innovation in the fantasy sports market,” Power explained.

“It comes at a time when our beta app has been installed more than 20,000 times, with over 30,000 contest entries across 10 of the biggest sporting leagues and competitions in the world including the NFL, NBA, EPL, MLB and the Six Nations.

“The launch of our Stocks for Sports index games for NFL, Premier League, and rugby in the third quarter will provide real growth in our revenue and position ASX Sports for a major fundraising exercise in the coming months,” the ASX founder and president added.