Sharp Alpha to Invest $150M to Boost Customer Acquisition in Gaming

Gaming-oriented venture capital firm Sharp Alpha has closed a $150 million fund that, according to the company, will empower gaming businesses.

Sharp Alpha to Empower Gaming Businesses

According to the announcement, the Sharp Alpha UA Fund I will target a variety of businesses in sectors such as sports betting, online casino, and prediction markets. The non-dilutive growth capital will reinforce a variety of businesses, allowing them to bolster their customer acquisition initiatives.

Sharp Alpha UA Fund I will deploy the capital over the next 24 months. Select companies will receive investments ranging from $4 million to $30 million, depending on a variety of factors. The investment fund explained that its investments will focus on promising businesses that are either already profitable or nearing profitability in the $10 million to $100 million revenue range.

Sharp Alpha UA Fund I will be different from previous Sharp Alpha funds and, as mentioned, will offer non-dilutive capital. This means that recipients of investments will not be required to give up equity. Instead, Sharp Alpha will recover funds from the revenue generated by newly onboarded consumers.

The New Format Will Benefit Future Partners

Lloyd Danzig, managing partner at Sharp Alpha, commented on the new fund, saying that its format will benefit future partners as it will preserve ownership of their businesses, avoid restrictive covenants and scale with their growth.

Danzig added:

We were blown away by the amount of demand from our existing limited partners for this product. Investors seeking venture-like returns have largely been disappointed by actual distributions over the last five years.

Lloyd Danzig, managing partner, Sharp Alpha

Existing Sharp Alpha equity investments from earlier funds include Courtyard.io, Jackpot.com, Poolhouse, and Triumph Arcade.