Sports betting startup Cipher Sports Technology Group announced Monday the closing of a $5 million Series A funding round which the business expects will accelerate its growth into the rapidly expanding legal US sports betting market.
After a thorough due-diligence process, Cipher STG announced that Australia-based and privately owned investment group Cygnet Capital will lead its $5 million Series A.
The company’s predictive analytics technology, along with its flagship consumer brand Dimers.com and an expansive suite of B2B products, saw it nominated for the Sports Affiliate of the Year Award at SBC Summit North America. This placed Cipher STG "firmly on the radar of a number of investment groups and venture capital funds in recent months," according to the company’s announcement.
We are honored that Cipher Sports Technology Group has been shortlisted for the Sports Affiliate of the Year category at the 2022 SBC Awards North America.— Cipher Sports Technology Group (@ciphersports) May 26, 2022
It's very humbling to be in the company of some global leaders.#SBCAwardsNA @SBCGAMINGNEWS pic.twitter.com/8TbwzMlqWz
Chief Executive Officer, Adam Fiske, welcomed Cygnet Capital to the table, thanking the firm for its support: “Closing our Series A, with a partner such as Cygnet Capital leading the round, is an incredible milestone for us and we’re absolutely thrilled.”
Cipher Sports Technology Group claims it has been rapidly making inroads into the North American market since launching Dimers.com in mid-2020. Co-founded by Fiske and fellow Australians Katie Prowd, Darryl Woodford, and Nick Slade, the group now has offices in both New York City and Melbourne, Australia.
Cipher STG's CEO, Adam Fiske
"From the first conversation we had with Cygnet Capital, to where we find ourselves today, it’s been really clear that we are completely aligned when it comes to our collective view on the size of the opportunity in the US," Fiske added.
In a press release, the company described Cygnet Capital as providing a "unique approach" to capital outside of the traditional VC structure, meaning it can invest over multiple rounds as a company either stays private or goes public.
Cygnet Capital Co-Founder Johnathan Rosham praised the team at Cipher STG sharing great appreciation for being involved with a company with "major international ambitions".
"In the current environment, industry sectors that exhibit high growth and profit margins will be at a premium. We believe that the broader wagering sectors, and specifically the US, will provide an opportunity to leverage and expose our capital to above-average growth in a challenging and volatile global investment environment," Rosham said.
"It’s quite remarkable to think that a market the size of North America has only just embraced online sports betting, something the European and Australian markets have had access to for over 20 years now," he added.
Cygnet Capital has made several other investments in the global wagering industry, and is "excited by the burgeoning opportunity that legal online sports betting presents in America." The firm believes Cipher team's experience and expertise will "undoubtedly set them apart" as they continue to grow their business in the US.
"Cipher is now well-positioned to make a significant impact in the US and we’ve no doubt their brand-and-technology-first approach will prove invaluable as they further accelerate what has already been a very impressive penetration into the North American market. We see a strong scenario where they grow their revenue base from several million dollars this year to tens of millions of dollars in the next two to three years," Rosham concluded.
Furthermore, Cipher Sports Technology Group anticipated that Co-Founders Adam Fiske, Katie Prowd, and Nick Slade will all be in attendance at the SBC Summit North America, which will take place on July 12-14, at the Meadowlands Convention Center in New Jersey.