Reddit co-founder ploughs $4m seed funding into US social betting start-up
Alexis Ohanian and Tinder co-founder Justin Mateen invest in sports betting brand Wagr ahead of US market debut
Reddit co-founder Alexis Ohanian has spearheaded a $4m seed funding investment into US social sports betting start up Wagr.
Ohanian, who is worth an estimated $70m, made the investment via his venture capital firm Seven Seven Six, which launched in February 2021.
The funding round attracted support from investment firms Greycroft and Pear Ventures, as well as Tinder co-founder Justin Mateen, former Saks Incorporated CEO Brad Martin and Joe Baker, founder of US-based whisky brand Ole Smoky.
Despite only launching in February, Seven Seven Six has already made investments into 19 other businesses operating in a range of diverse sectors including healthcare, communications and IT.
Help us welcome investment #0019: @withwagr
pic.twitter.com/Y7AC1uZf60
— Seven Seven Six
(@sevensevensix) June 16, 2021
In comments reported by Bloomberg, Ohanian said: “It’s about productising what already goes down in everyone’s group chat, which is wagers between friends about sporting outcomes.”
Wagr targets recreational US punters and aims to move away from the traditional sports betting app model towards a more social environment for betting. It also aims to create a setting where knowledge of sports betting is not essential.
Wagr said in a LinkedIn post: “We’re on a mission to create a social, simple, and inclusive sports betting experience that anyone can enjoy safely.
“We’re so thankful and humbled to have the best partners in the game,” Wagr added.
The start-up will initially offer exchange betting on major US sports with point-spread bets only but is also targeting the launch of moneyline and prop bets.
Former Caesars Entertainment CEO Gary Loveman currently serves as a strategic adviser to Wagr.
Speaking to Bloomberg, Wagr founder and CEO Mario Malave said: “Our app really strips down the betting experience to the bare essentials.
“From a user’s perspective, all you have to do is pick a team, decide who you want to bet against, and select how much you want to wager,” he added.
Wagr is looking to make its US debut in Tennessee and Virginia pending regulatory approval.
Sports handle in Tennessee amounted to $172.4m in April according to latest data from the Tennessee Education Lottery Corporation, while $236.4m in sports handle was generated in Virginia over the same period.