Australian sports betting startup Cipher Sports Technology Group raised $ 5 million in a Series A round. The company competes in the B2B and B2C space and focuses on predictive analytic betting products, machine learning, and sports media. Cipher will use the newly acquired funding to expand its US business.
Cipher Sports Technology Group launched in 2021 and quickly drew the attention of investors after it got nominated for the Sports Affiliate of the Year Award during the SBC Summit North America conference.
Cygnet Capital Stepped In as the Primary Investor
After a thorough due-diligence process, Cipher chose the Australian private investment group Cygnet Capital as its primary partner for the $5 million Series A. Johnathan Rosham, Co-Founder of Cygnet Capital, lauded Cipher’s international expansion ambitions and expressed hope that the sports betting startup would achieve stellar growth in a volatile and challenging global investment environment.
Cipher is now well-positioned to make a significant impact in the US and… accelerate what has already been a very impressive penetration into the North American market.Johnathan Rosham, Co-Founder of Cygnet Capital
Rosham noted that Cipher was in the perfect position to secure its spot in a prime market which had only recently accepted online sports wagering. He added that Cipher’s expertise would help them capture a market niche in the North American market with their brand-and-technology-first approach. Rosham concluded by noting Cipher’s potential to grow its revenue to the tens of millions over the next few years.
The Funds Will Fuel Cipher’s US Expansion
Cipher Sports Technology Group got founded after the merger of Australia-based companies iRival Media and Hypometer Technologies. The sports tech developer has offices in Melbourne, Australia, and New York City. In addition to its flagship US brand Dimers.com, Cipher also focuses on its B2B offerings in the country by providing its offerings to sportsbooks and media companies. On its home turf in Australia, Cipher partners with the National Rugby League and the Australian Football League.
Cipher CEO Adam Fiske noted that Hypometer Technologies and iRival Media had maintained long and fruitful cooperation, so the merger had been a natural next step. He stated that the two companies had chosen to cooperate in their US expansion instead of becoming potential rivals. Fiske praised Cipher’s team of skilled professionals, adding that investors and shareholders shared his confidence in the company’s future.
From the first conversation, we had with Cygnet Capital… it’s been really clear that we are completely aligned when it comes to our collective view on… opportunity in the US.Adam Fiske, Cipher CEO
Cipher currently has 15 full-time employees in Melbourne and five in its New York office. After the successful Series A Funding, the company announced ten new open positions, five each in Australia and the US. The rest of the funds will get invested in new technology development and increased marketing efforts to reach a larger US audience.