Sharp Alpha Unveils New $150M Fund Targeting Online Betting, Sports, More
After raising $150 million in funds that may be used for online gaming, sports, and entertainment over the next two years, Sharp Alpha announced that it has closed a new investment vehicle.
The venture capital firm, which has concentrated on investments in sports betting and iGaming, stated that the Sharp Alpha UA Fund aims to provide "non-dilutive capital" to emerging businesses in order to support their client acquisition efforts.
"The UA Fund targets investments between $4 million and $30 million, with interest in larger facilities once a relationship has been established,” according to a statement issued by investment shop. “Sharp Alpha’s managing partner Lloyd Danzig is joined by a team of industry veterans across revenue-based financing, structured products, and quantitative finance.”
Many new businesses in the interactive entertainment and gaming industries, in Danzig's opinion, are ready for the kind of funding his company provides.
“Unlike traditional equity or venture debt, cohort-based financing aligns capital deployment directly with customer acquisition outcomes,” said Danzig in the press release. “This structure preserves ownership, avoids restrictive covenants, and scales with company growth.”
Analyzing Possibilities Investment Goals for Sharp Alpha
Based in New York Sharp Alpha listed several characteristics that it would be interested in, but it did not name any particular businesses in which its new fund might invest.
It seems likely that Sharp Alpha's third investment fund would concentrate on businesses with $10 million to $100 million in yearly sales that are currently profitable or on the verge of breaking even. These companies might be searching for unconventional funding options to expand their operations, and Sharp Alpha's terms of repayment and economics may be more appealing to them than those of standard lenders.
Danzig stated that the company's current limited partners had a high desire for entry to the Sharp Alpha UA Fund, which is the company's third fund.
Additionally, he noted that cohort financing is becoming popular in the venture capital industry as a result of investors' dissatisfaction with cash distributions over the previous five years, which has left them reliant on liquidity events like initial public offerings (IPOs) to make money off of their initial investments.
Sharp Alpha's Performance History Is Outstanding
Players' Lounge, GridRival, PickUp, and Prophet are among the early-stage businesses that Sharp Alpha has already seeded. According to the announcement, Triumph Arcade, Courtyard.io, Poolhouse, and Jackpot.com are among the current stakes from prior funding.
Privately held Jackpot.com, founded by Akshay Khanna, Roi More, Yariv Ron, and Christopher Brown, may succeed as more states consider authorizing online lottery sales to increase tax receipts.
Operating in Arkansas, Colorado, Massachusetts, New Jersey, New York, Ohio, and Texas, Jackpot has secured $42 million from a variety of investors.
