Fantasy sports start-up ASX Sports has raised almost €1 million in seven days in its crowdfunding campaign.
The company, which was co-founded by eponymous bookmaker Paddy Power, was targeting €750,000 units campaign on Spark Crowdfunding, offering equity through a SAFE note.
More than 250 investors have pledged €953,000 in funding since the campaign was launched a week ago.
Equity crowdfunding offers shares in the company to a number of potential investors in exchange for financing, targeting small and medium-sized investors rather than large funds. Investors can provide small contributions, and are entitled to a stake in the company proportional to their investment.
“Too often, private investors miss out on early-stage investment opportunities in private companies because the venture capitalists hold all of the cards,” ASX Sports president Paddy Power said. “Crowdfunding gives small to medium-sized investors an equal seat at the table.”
ASX operates like a virtual stock market for sport, giving fans a new way to engage with friends and their favourite sports . Users can pick athletes playing with friends on the live price movements based on player performance. Its beta app has been installed more than 20,000 times, with over 30,000 contest entries across 10 of the biggest sporting leagues and competitions in the world including the NFL, NBA, EPL, MLB and the Six Nations.
The latest funding campaign follows last year’s successful raise of €2.2 million through the equity crowdfunding platform. It will also be the final funding round offered before it holds its Series A, which is likely to be next year ASX said.
Spark Crowdfunding CEO Chris Burge said the speed at which the company had been able to crowdfund investment was “unprecedented”.
“Anything that gives private investors equal access to exciting new venture opportunities is welcome news for us and we’re delighted to be a part of another fundraising round for Paddy and the team at ASX, especially as it is likely to be the last opportunity to invest in ASX ahead of their Series A round in 2023,” he said.
ASX Sports has also launched its new peer-to-peer contests, which its says makes it the first fantasy sports platform to have fan contests running live during games. Players can create their own contests and compete for real money or “sportzcoins”, while sporting celebrities, eSports gamers and social media influencers can monetise their own followers and streamers.
Previous fundraising rounds have proven popular, with the company raising €2.2 million in less than a month. Its original target of €500,000 was reached within 24 hours of going live on Spark’s platform. It was subsequently extended and raised €634,435 in less than two days.