Jake Paul’s Betr Lands $15M in Financing, Valuing Betting Firm at $375M

Posted on: March 7, 2024, 03:37h. 

Last updated on: March 8, 2024, 10:51h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Betr Holdings Inc., the sports wagering startup cofounded by boxer Jake Paul, announced Wednesday that it raised another $15 million, valuing the company at $375 million.

Levy
Betr co-founders Joey Levy (left) and Jake Paul. The company announced a new $15 million funding round that values it at $375 million. (Image: Joey Levy/Medium)

The latest funding round, which brought the total raised to date by Miami-based Betr to $100 million, was led by Harmony Partners and 10x Capital, with participation from existing Betr investors Fuel Venture Capital, Aliya Capital Partners, and Roger Ehrenberg/Eberg Capital, among others.

Betr recently announced market access expansion plans for its Online Sportsbook product, having secured market access in Pennsylvania, Ohio, Virginia, Indiana, Colorado, and Kentucky, as well as the upcoming launch of its Casino product (pending regulatory approval), with the company also securing iGaming market access in Pennsylvania,” according to a statement. “Betr has also officially received its temporary Indiana sports wagering license from the Indiana Gaming Commission in recent weeks.”

The funding round arrived soon after Betr announced its departure from the Massachusetts sports wagering market.

Betr Proving Adept at Raising Capital

To date, Betr has been a bit player on the domestic sports wagering stage. But in just over two years, the company has proven proficient at raising capital and attracting well-known investors.

Before Wednesday’s announcement, the gaming operator’s last capital raise was an A2 round last June in which it garnered $35 million at a premoney valuation of $300 million. That round was led by Roger Ehrenberg via IA Sports Ventures and Eberg Capital, and Fuel Venture Capital. With a $10 million contribution in the A2 round, Fuel Venture boosted its investments in Betr to $20 million.

Some Betr investors have previously taken stakes in entities that went on to become well-known internet firms, and 10X Capital was an early investor in DraftKings (NASDAQ: DKNG).

“We believe that Betr has the product, management, and market opportunity that we saw in DraftKings in its early days with a significantly larger TAM and room for growth today,” said David Weisburd, cofounder and head of Venture Capital at 10x Capital, in the statement.

Other Gaming Financing News

Separately, Vancouver-based Strive Gaming, a provider of player account management analytics, raised an undisclosed sum from OpenBet. That marks the first investment by OpenBet since it was sold in 2022 by Light & Wonder (NASDAQ: LNW) to Endeavor Group Holdings, Inc. (NYSE: EDR).

OpenBet now has a minority interest in Strive. Astralis Capital Management, Knutsson Holdings AB, and Betsson also participated in that funding round.

“With the strength of Strive Gaming’s PAM as a future-proofed solution for the U.S. market, combined with OpenBet’s high standards, we can offer U.S. operators a fully integrated turnkey proposition that will fuel responsible betting experiences,” said OpenBet CEO Jordan Levin in a statement. “This new partnership sparks a new chapter in our history.”