The best sports betting startups to watch, according to venture capitalists
- Insider asked 5 big investors which sports betting startups they think will thrive in the coming year.
- Each investor chose two companies, one of which they had not invested in.
- They included promising industry operators, suppliers and media companies.
- See more stories on the Insider business page.
The growth of the US sports betting industry is booming.
Investment manager Ark Invest estimates that the US online betting market will reach $ 37 billion by 2025, up from $ 9.5 billion this year, as Reuters first reported.
As the industry grows, big operators like DraftKings and FanDuel and casino chains like Caesars Entertainment focus on absorbing market share, often with high marketing bills.
And, more and more, they are turning to startups to help them acquire new customers or expand into new areas. Sports betting platforms have acquired VSIN media network and fantasy sports site Monkey Knife Fight over the past year, to name a few.
With the startup space driving innovation and mergers and acquisitions in the industry, Insider asked five prominent venture capitalists and angel investors which sports betting startups they think will grow in the past 12 years. next months.
Each investor chose two companies, one of which they had not invested in.
The investors included:
- Steve Ahern of KB Partners
- Benjie Cherniak, Founder of Avenue H Capital, who is an angel investor
- Lloyd Danzig, founder of Sharp Alpha Advisors
- Chris Grove, partner of Eilers Krejick & Gaming, an angel investor raising his own venture capital fund
- Founder and CEO of Bettor Capital, David VanEgmond
Their start-up choices touched on a few trends.
A few of the investors liked companies that had the potential to cultivate casual sports players. These included the Gaming Society media and game stores, soon to be launched Sporttrade betting operator, and fan engagement company PickUp.
Some, like cybersecurity firm GeoComply and data provider Sports Info Solutions, have provided key back-end software that investors believe could become even more important as the U.S. market continues to grow.
Other startups on the list, including game developer Boom Entertainment and Underdog Fantasy, have drawn big investors from New England Patriots owner Robert Kraft and ESPN analyst Adam Schefter to Dallas Mavericks owner Mark Cuban and the rapper Nas.
Here are the 10 investor choices, listed in alphabetical order: