- Legal States
Stoyan Todorov October 19, 2021 3 min read
GridRival Adds $3M in Funding to Serve Motorsports Fans
Upcoming motorsports sports betting startup GridRival has concluded a fresh seed round to the tune of $3 million led by KB Partners, a sports-tech fund. The move elicited support from distinguished sports betting investors and organizations, to name ESPT Ventures and Sharp Alpha Advisors along with Benjie Cherniak and Lloyd Danzig.
GridRival is confident that there has been a vacuum for motorsports, sports betting, and fantasy sports, and the company is now prepared to tackle this issue. The startup has some 120,000 active users and the latest $3 million funding will help it achieve its mission goals at what appears to be an auspicious timing for the industry. Commenting on this move, GridRival co-founder and CEO Ross Fruin said:
“As a lifelong motorsports fan that’s been watching the DFS and sports betting craze from the sidelines, I knew one thing was clear – if any brand was going to engage the racing audience in a meaningful way at significant scale, it must be done with a platform exclusive to motorsports.”GridRival co-founder and CEO Ross Fruin
Fruin is confident that the platform and offering GridRival puts forward will allow motorsports fans to find a real money gambling website that covers their favorite competitions in a way they expect it to.
While GridRival used a familiar market-entry strategy, starting off as a free-to-play fantasy platform, the new funding should allow the company to introduce real money games in both the US and the UK over the next year.
Expanding in New Markets and Creating a Hub for Motorsports Fans
The extra funding will be used to expand the available series and betting options on the platform. Steven Ahern from KB Partners offered a brief commentary on the deal and argued that the number of global racing fans is increasing and they are currently underserved by mainstream sports betting platforms that have failed to fully factor in motorsports fans’ preferences.
“We are thrilled to partner with the GridRival team as they build the first truly authentic fantasy sports and sports betting experience for this audience,” Ahern said. GridRival also has an ambitious plan to overcome one of the biggest hurdles for the motorsports betting industry, which is user acquisition. Regardless of that inherent challenge, GridRival was able to post a 2,000 year-over-year growth in its player base.
GridRival’s success did not remain unnoticed by Danzing, an established sports betting investor who congratulated the company on its strong customer acquisition bonanza and argued that GridRival had proven itself capable of reaching motorsports fans worldwide. As to GridRival, the company sees itself as the “home screen” for motorsports fans.
Real money gambling is just one aspect of the offer, argues Fruin who wants to turn GridRival into the one-stop shop for motorsports-related content and community.