Sporttrade attracts US heavy hitters in $36m funding round
Former MGM Resorts CEO Jim Murren and ex-Nasdaq CEO Tom Wittman line up to back sports betting exchange startup
Sporttrade has closed a $36m funding round as it prepares for its forthcoming debut as the first regulated sports betting exchange trading platform in the US.
Investors participating in this funding round include Jump Capital, Impression Ventures, Hudson River Trading and Tower Research Capital.
The startup has also attracted investment from former MGM Resorts International chairman and CEO Jim Murren, and ex-Nasdaq Stock Exchange CEO Tom Wittman.
Sporttrade has confirmed that convertible debt was also issued to Nasdaq Ventures as part of the transaction process.
The firm has said funding will be used for customer acquisition, expanding into additional states, and continued investment in the business.
Delavan Lake Investments, co-founded by David Frohardt-Lane and Brandon Moran, also participated in the funding round.
We're up in @TimesSquareNYC
Thank you @Nasdaq! pic.twitter.com/wcAOinrdKK
— Sporttrade (@sporttrade_app) June 22, 2021
Speaking about the additional investment, Sporttrade founder and CEO Alex Kane said: “Our mission is to elevate the sports betting industry by applying capital markets principles and technology and to place the customer at the forefront.
“Today marks a significant broadening of our coalition to achieve that mission,” Kane added.
“Sporttrade is backed by some of the largest and most successful traditional market makers in the US, firms who believe in our vision for a fairer, more efficient market structure, and are intrigued by the notion of participating in that structure,” Kane also told EGR NA.
Sporttrade is currently in the process of securing a license with the New Jersey Division of Gaming Enforcement (NJDGE), with a view to launching an iOS app during H2 2021.
Founded in 2018, Sporttrade aims to enhance and democratize the traditional betting experience for players.
The firm’s open betting marketplace looks to replicate many features used in stock trading, including tighter spreads, more liquidity, in-play trading, and the ability to trade in and out of bets at any time.
Sporttrade is based in Philadelphia, Pennsylvania, and currently employs more than 50 staff.