TLDR:
– VC firm Sharp Alpha Advisors raised a new $25 million fund focused on sports betting and gambling.
– The fund plans to invest in early-stage sports, gambling, and entertainment startups.
A venture-capital firm called Sharp Alpha Advisors has closed a new $25 million fund to invest in early-stage sports, gambling, and entertainment startups. The fund, led by managing partner Lloyd Danzig, is writing bigger checks than its first fund from 2021. The firm’s first fund had previously invested in companies such as Almost Friday Media, Jackpot.com, and Betcha. Despite a tough funding environment for sports and gaming startups, Danzig believes there is still promise in the sector and sees an opportunity to introduce new tech ideas to the entertainment industry. The new fund intends to invest $1 to $2 million in target ventures, an increase from its initial fund, and has already invested in C15 Studio, the operator and distributor of Formula 1’s new streaming channel.
Sharp Alpha is interested in products and platforms that unlock the entertainment side of real-money gaming for recreational customers. The funding environment has been challenging for startups and fund managers, but Danzig is grateful to have excited investors re-upping into the new fund. Overall, the fund is focused on investing in exceptional founders and companies aligned with major industry tailwinds, such as the shift of sports teams and leagues to direct-to-consumer relationships.
