Sports Gaming Investment Fund, a venture capital firm, has announced its launch to discover, fund and guide the development of sports betting startups.
The fund is hoping to take advantage of the rise in sports betting platforms in the United States thanks to a 2018 Supreme Court decision that allowed all states to legalize sportsbooks. It is estimated that $17 billion can be made in the legal sports betting marketplace, and already several successful sports betting startups, like Draft Kings, FanDuel and Covers.com have since launched.
“There’s no doubt that the keys to fully unlocking the potential of the U.S. sports betting market are in the hands of startups,” said Chris Grove, managing partner in SGIF and a nationally recognized expert on the legal sportsbook industry. “We’re just now starting to see the ideas that will ultimately define sports betting in the United States.”
“The pace of development in the U.S. market only increases the opportunity for startups,” added co-managing partner David Sargeant, also an expert in the growing industry. “Large casinos and software providers won’t have the bandwidth or resources to truly innovate. They’re too busy simply getting up and running.”
One of SGIF’s investors thinks the fund is a safe bet for continued success.
“My decision to invest in SGIF was driven by my belief in the team’s superior deal flow, their proven ability to evaluate that flow, and the resources they can deploy to support portfolio companies,” said investor Jeremy Levine, who himself has founded several companies.
SGIF plans to play a role in guiding sports betting startups through a regulated landscape, and adding value to the companies they invest in by ensuring optimal product fit and market access.