Start-up BetDex raises $21m from investment round – Finance

BetDex Secures $21 Million Investment to Revolutionize Sports Betting with Blockchain Technology

BetDex, the innovative blockchain-powered sports betting exchange co-founded by Nigel Eccles, a former executive at FanDuel, has successfully raised $21 million (£16 million/€19 million) in its most recent investment round. This significant influx of capital positions BetDex at the forefront of the rapidly evolving gambling landscape.

Leading the investment round are two major players in the cryptocurrency space: FTX, a burgeoning cryptocurrency exchange recently valued at an impressive $25 billion after its Series B-1 funding round, and Paradigm, a San Francisco-based venture capital firm specializing in cryptocurrency investments.

Joining the ranks of prominent investors are notable firms such as Multicoin Capital, Hack VC, Lightspeed Venture Partners, Sino Global Capital, Solana Ventures, and Everblue Management. This diverse group of backers underscores BetDex’s strong potential within the industry.

Sam Bankman-Fried, co-founder and CEO of FTX, expressed enthusiasm for BetDex’s mission, stating, “We are thrilled to be backing a team with deep industry expertise to transform the sports betting experience. It is mind-boggling that more sports wagering does not occur on exchanges. We firmly believe in giving consumers the ability and control to set their own prices and are excited to partner with BetDex to bring this vision to fruition.”

Commenting on the potential impact of cryptocurrency on online betting, Arjun Balaji, an investment partner at Paradigm, noted, “It feels obvious that crypto will transform online sports betting. The BetDex team possesses the right combination of industry experience and technical skill to create a roadmap for the future of this sector.”

Launched in late 2021 and headquartered in Scotland, BetDex aims to create a “global sports betting protocol” that empowers users to trade bets swiftly and cost-effectively while mitigating counterparty risk. The platform is set to launch its services to customers in the first half of 2022, marking its entry as the first decentralized sports betting exchange within the market.

Eccles, who transitioned from FanDuel four years ago, serves as the non-executive chairman of BetDex, collaborating with co-founders Varun Sudhakar and Stuart Tonner. Sudhakar has taken on the role of CEO, while Tonner assumes the position of Chief Technology Officer.

“Blockchain technology is poised to revolutionize sports betting, and we want to be at the forefront of this transformation,” Eccles stated. “It’s exhilarating to establish this business alongside Varun and Stuart and to innovate from our base in Scotland. We are energized by the support and extensive expertise that Paradigm and FTX bring as cornerstone investors.”

As the gambling industry increasingly embraces technology, BetDex’s model highlights the growing importance of decentralization in sports betting. This innovative approach not only enhances user control and pricing options but also promises to reshape the competitive landscape of online gambling.