Sports betting has been on the up and up as more people realize just how lucrative this industry can be. That’s why many investors have pooled their resources and injected them into betting platforms. Of course, the sheer variety of options can sometimes overwhelm punters who may not know which sports betting sites are most trustworthy. But you can always count on Kerrybet to keep you in the loop of new bonuses and offers on various sites. Let’s look at some of the sports betting startups that have caused waves in the gambling scene and why they have been so successful:
Which Startups Have Raised the Most Funds?
Startups often succeed when they meet the following guidelines:
- They have business ideas that deviate from the norm of doing things, i.e., introducing a new way to approach sports betting,
- They are clear about their business plans which are all SMART with clear and sensible growth strategies,
- They rely on a strong team of competent and dedicated professionals who understand the business model,
- They research the market and conduct predictive analytics on their product performance, and
- They develop their products with competitor analysis in mind.
And the startups below have met these criteria over and above, allowing them to attract the right investors to propel their growth in this cutthroat industry.
DraftKings – $1.17 Billion
When this company started in 2012, its primary focus was on daily fantasy sports that were picking up pace. The uptake of these games was relatively high, and eventually, the execs decided to raise more funds to cater to more punter needs. This fund injection allowed the company to also zero in on other online betting options. And when the company went public, it raised even more money, allowing it to compete with the big dogs.
FanDuel – $438.50 Million
FanDuel started by focusing mainly on daily fantasy sports before expanding its online sports betting options. It started in 2009 and has become one of the most renowned betting platforms. Of course, it helps that this company received funding from Flutter Entertainment, which has quite a significant share of the sports betting market.
Simplebet – $82.2 Million
As the name suggests, this company, founded in 2018, aims to make betting much more accessible to punters. How so? It relies on machine learning for the generation of odds in real-time. As such, it is one of the few companies that allows punters to focus on micro-bets and gain from them considerably. This innovation has attracted arguably great investors, including the Starbucks CEO Howard Schultz.This startup will receive even more funding as micro-betting becomes more ingrained in the sports betting culture.
Mojo – $75 Million
People like investing in stock options. But who would have thought punters could invest in athletes one day too? That’s the premise of this betting site which allows punters to place stakes on athletes like they would on stocks. And, of course, it has some athletes behind it, including MLB player Alex Rodriguez. The sports stock market is still in the developmental stages but has garnered attention from punters who want to invest in their stakes.
Sporttrade – $46 Million
Sports betting exchanges are quite common as more punters seek to eliminate the intermediaries and thus forgo the vig factor in traditional sports betting. And this company offers them a chance to trade in their bets. It works by valuing a bet on a Likert scale based on its probability. This technique allows punters to trade in their bets or buy bets placed by other punters. It is quite an innovative idea as punters can avoid hours of research and instead fixate on the most valued wagers and use them to build on their profits.
More startups are coming up by the day as more people try to capitalize on the growth of the sports betting industry. If you are also interested in executing such a startup, be sure to learn from the unique market positions taken up by the above examples. It’s the easiest way to create demand in this market, where punters have more options than they can ever use.
