Sporttrade Secures Funding Led by Major Names in Finance
Sports betting is sweeping the nation, and the trajectory is still on the rise. Sporttrade, the company with the goal of launching the first legal sports betting exchange, announced a $36 million funding round.
The investments have come from some of the biggest names in finance, showing the mainstream nature of sports betting in the United States.
$36 Million Funding Round
The funding round was filled with many successful companies and individuals in the finance industry. The round was headed by Chicago VC firm Jump Capital. Other individuals included in the investment were Jim Murren, former MGM Resorts International CEO, and Tom Wittman, former CEO of the NASDAQ Stock Exchange.
The funding round allowed Sporttrade to transfer its debt to Nasdaq Ventures. This part of the deal will help Sporttrade grow in the industry.
Impression Ventures, Hudson River Trading, and Tower Research Ventures also contributed to the project. Hudson River Trading and Tower Research Ventures are involved in trading, and leaders of the companies will support Sporttrade.
The first goal for Sporttrade is to launch in New Jersey. After this occurs, the $36 million will go towards various areas to help the company prosper. The new funds will be allocated towards customer acquisition, expansion, and continued investment in qualified staff members.
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There are currently 50 employees in the company ahead of Sporttrade’s launch in New Jersey.
Finance and Sports Betting
Sporttrade is going to be a stock exchange for sports betting. The concept of lines and odds adjusting fits perfectly in a stock market format. The company’s CEO, Alex Kane, has the goal of applying financial principles to sports betting.
This goal begins with creating a product that’s easy to utilize, according to Kane.
“People without a financial background can open Robinhood and understand how to invest in stocks. Why should sports betting be any different? In finance, retail traders get a good experience, but they also get good execution. When my sister opens Robinhood and makes a trade, it gets executed at the best price in America because of regulatory requirements. I believe the same things should happen in sports.”
The market-makers for Sporttrade are used to working on penny stocks in the financial industry. Their experience should help bettors that utilize Sporttrade.
Sporttrade will not use American odds like +110 or -110 for accessibility. The odds will be on a scale of 1 to 100, and the numbers will resemble the likelihood of a bet hitting.
For example, you may buy a team at 20, but after they take a lead, they may rise to 35 on Sporttrade. Sports betting is growing at an extensive rate, but there is still a lot of room for improvement.
Kane attested that the financial conglomerates in the investment round would help Sporttrade grow to insurmountable heights.
“Nasdaq has the same vision we do. They think sports betting looks like the stock market in the 1950s with huge room for improvement. They bring tech know-how to the table along with market structure expertise.”