Betr Holdings Inc
Betr Raises $35M in Series A2 at $300M Pre-money Valuation
Betr Holdings Inc. announced its $35M Series A2 round of financing valuing the company at $300M pre-money. The Company held a set of initial closings for its Series A2 round of financing in Q2 and is scheduled to conduct a final closing in Q3. The round is co-led by Roger Ehrenberg via IA Sports Ventures and Eberg Capital, and Fuel Venture Capital, with Fuel expanding their investment size in Betr from $10M invested to date to $20M total. Both co-founders – Joey Levy via a personal investment and Jake Paul via Anti Fund – participated in the round, and other major existing investors including FinSight Ventures, Florida Funders, and Aliya Capital Partners have invested significantly beyond their pro rata.
Betr’s gaming division, Betr Gaming, is an online sports betting (OSB) business focused on a unique product experience with a simplified UI/UX that is catered to the casual sports fan, enabling Betr to capture more of the underpenetrated online gaming addressable market. Betr Gaming began with a microbetting-only product, allowing users to bet on individual plays and events – such as pass or rush on the next play in football or the outcome of the next pitch in baseball, and is expanding its product offering to include additional markets with full sportsbook capabilities. Betr Gaming is licensed and operational in Ohio and Massachusetts, is licensed in Virginia with plans to launch soon, and holds market access in Indiana and other jurisdictions that will be announced soon. In addition to OSB, Betr Gaming will be unveiling two additional real money gaming verticals, which will be announced over the coming weeks and months, signifying the Company’s commitment to diversification and innovation within the gaming industry. Betr Gaming has also established itself as the leader in responsible gaming across the real money gaming industry by being the first and only operator to proactively ban credit cards as a method of depositing for all users, while imposing monthly deposit limits for young consumers aged 21-25 years old.
Betr recently acquired the Chameleon platform from FansUnite, which will enable Betr Gaming to launch V1 of its OSB product, Betr Betting, with full sportsbook capabilities which will include pre-match and in-play core markets, parlays, same game parlays, futures, props, and other bet types, along with 20+ additional sports. In addition to bolstering Betr Betting, the Chameleon platform will also support the two additional real money gaming verticals the Company plans to announce.
Betr’s media division, Betr Media, is the fastest growing sports betting media brand in the US, already surpassing 1.3B impressions on social media in its first 10 months. Betr Media is focused predominantly on original and short-form content, which the Company believes will be the primary form of sports media consumption for the 21-34-year-old male demographic outside of consuming live sporting events themselves. Betr Media’s unique approach of creating culture as opposed to reposting culture is also informing unprecedented media-audience-to-product conversion, with over 20% of Betr Media’s estimated Ohio audience already converting to real money gaming customers for Betr Gaming. In just its first year, Betr Media was awarded Best Sports Betting Content in the sports media industry at the 2023 Hashtag Sports Awards and was also nominated for two other awards, including Best Original Content for the Company’s flagship franchise BS w/ Jake Paul and Best Use of Gamification for the Company’s Betr Ticket contest.
Betr Media is driving low-to-no-CAC for Betr Gaming, positioning the Company to have the best unit economics in the OSB and iGaming markets, which is projected to reach over $40B in the US and $150B globally by 2030. The Company has laid the foundations for a powerful flywheel – where it can capitalize its business and monetize users directly via Betr Gaming products, invest this capital in content creators via Betr Media to further drive brand awareness and brand affinity, and then funnel this incremental audience growth and engagement to Betr Gaming products.
Joey Levy, Founder and CEO of Betr, said: “I am thrilled to announce our Series A2 round of financing, which we opportunistically raised after successfully laying the foundations for Betr Gaming and Betr Media while validating some of our core theses. Our ability to rapidly scale Betr Media’s audience, and then convert this audience to Betr Gaming at low-to-no-CAC, will enable us to have the best unit economics in the regulated real money gaming industry, positioning Betr to create more value than incumbent operators over time. The three pillars of our business are 1) low-to-no-CAC supported by unique social media expertise, 2) strong user engagement and retention supported by brand affinity and a differentiated product, and 3) a focus on responsible gaming supported by a team that believes in doing the right thing. We have seen material validation of pillar one, we have demonstrated leadership and still have more planned with respect to pillar three, and we will be better positioned to validate pillar two after launching our two other real money gaming verticals and V1 of Betr Betting on top of the recently acquired Chameleon platform.
“Finally, I am thrilled this round has served as a platform to deepen the Company’s relationship with Roger Ehrenberg, one of the most successful venture investors of the past two decades who is investing over 10x his pro rata in this round, and Fuel Venture Capital, one of the preeminent Miami-based venture capital firms, who is doubling their investment in the company from $10M invested to date to $20M total after this round. I am grateful for the continued support of Roger, Fuel Venture Capital, and many of our other great investors.”
Roger Ehrenberg said: “Betr is poised to change the dynamics of the OSB landscape by moving ‘entertainment’ front and center through compelling content, a superior user experience and deeper engagement across both major and alternative sports. Sports have a special ability to bring people together, and no company is better positioned to accelerate and benefit from this trend than Betr.”
Jeff Ransdell, Founding Partner & Managing Director of Fuel Venture Capital, said: “Joey, Jake, and the incredible Betr team are truly creating something remarkable. They are addressing a genuine need in the sports media and betting world, catering directly to the end consumer. The overwhelming demand from investors wanting to join this journey is a testament to the validity and promise of what they’re building.”