Betr Secures $35M in Funding, Reaches $300M Valuation
Betr, the micro betting-focused app cofounded by social media superstar Jake Paul (pictured), has announced a successful Series A2 funding round, raising $35 million. That brings the company’s valuation to $300 million.
The funding round was spearheaded by IA Sports Ventures, Eberg Capital, and Fuel Venture Capital. Fuel increased its total investment in Betr to $20 million.
Betr’s cofounders, Joey Levy and Jake Paul, also participated in the funding round through personal funds or investment vehicles.
Unique Approach to Sports Betting
Despite a difficult start in the competitive US online sports betting market, Betr has managed to generate significant investor interest for its unique approach to micro betting and its social media star backing.
Micro betting involves bets on short, live in-game markets such as the next scorer, the outcome of the next play in an NFL football game, or the next pitch in a baseball game.
The company currently operates in Paul’s home state of Ohio and in Massachusetts, where it recently launched in May 2023.
It also plans to launch in Indiana later this year, where it is partnered with the Eastern Band of Cherokee Indians to offer sports betting services.
However, Betr is not doing doing particularly well in either state so far. In Ohio, it has had only one profitable month since its January launch when including promotional spend. In April, Betr failed to even make 1% of Ohio’s overall sports betting market share.
CEO Levy has previously stated that market share is not the company’s primary concern. Instead, Betr is focusing on its unique micro betting product, which allows users to bet on individual plays and events.
“Betr Media is the fastest-growing sports betting media brand in the United States, already surpassing 1.3B impressions on social media in its first 10 months,” Levy 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.”
Even with the company’s current financial losses in the states where it operates, Betr is still clearly attracting investor attention.
The company plans to introduce traditional sports betting options to its platform in the coming months, as well as micro betting.
Betr also has a strong “focus on responsible gaming supported by a team that believes in doing the right thing,” according to Levy.
It is the first and only sports betting operator in the US to have banned credit cards as a form of deposit. It also sets mandatory monthly deposit limits for clients in the 21 to 25 age group.
Investors gave statements this week in support of Betr as it announced the new round of funding.
“Betr is poised to change the dynamics of the online sports betting landscape,” said Roger Ehrenberg, founding partner of IA Sports Ventures. They will do so “by moving ‘entertainment’ front and center through compelling content, a superior user experience, and deeper engagement across both major and alternative sports.”
Fuel Venture Capital was also feeling bullish about Betr after its latest $20 million investment.
“Joey, Jake, and the incredible Betr team are truly creating something remarkable,” said Fuel Partner & Managing Director Jeff Ransdell.
“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.”