Figure 1 Sports betting is big business now

It will not have escaped your attention that the sports betting, gambling, and gaming industry is doing quite well at the moment. Since the Supreme Court effectively legalized betting in 2018 with their decision to overturn the Professional and Amateur Sports Protection Act (PASPA), billions of dollars have been made and sports betting is everywhere.

What might surprise you is how smaller betting startups are competing with the major players. The big sportsbooks and gambling operators have incredible visibility and have done very well out of the American public’s interest in sports and betting. But there have been a number of success stories with smaller operators finding gaps in the market.

A big sportsbook like BetOnline is now established enough to be a recognized name in the industry. But how do smaller betting startups get going in the first place? What makes these operations attractive to potential investors?

How to Attract Investors to a Betting Startup

Different Investors

Before we start to look at what things a startup can do to attract investment, we should make it clear that there are a number of different kinds of investors to think about. Startups may want to capture the big venture capitalist to bankroll their ideas but there are other ways of raising funds.

Family and friends may be a good way to begin, especially when a startup is looking for early funding. From there, banks, angel investors, and venture capitalists can be investigated – and even corporate investors when the startup really starts to move. Different investors can be useful at different times along the journey.

Accentuate Identity

When it comes to impressing potential investors, well-set out business plans are obviously required. But there is a lot of detail that can be shared about a startup to help attract funds. With such big names in the gambling industry, conveying a good sense of unique identity is vital.

Whatever area of the sector a startup finds itself in, being able to be recognized as the go-to company is crucial in such a competitive industry. A lot of work and research should be done when it comes to brand identity, balancing the need for individuality with the sector as a whole.

Go Big on Loyalty

Any investor wants to know that there is a customer base just waiting to be served. That is obviously the case when it comes to the sports betting and gaming world, but there will be the need to explain how a startup will be able to retain its customers in such as busy and fast-moving area.

Although it is true that sports betting operator customers are routinely encouraged to shop around for the best deals, there is also the potential for a good degree of brand loyalty. That might be easier for the more established names to achieve but a good startup should be able to explain how it intends to foster its own.

Profitability of Sector

This is probably the biggest selling point for any betting startup looking to raise funds from investors. The global market value of the gambling industry has been going up year on year and shows no sign of slowing down. With greater acceptance and easing of restrictions, this should be one argument that is easy to make.

Obviously, a startup will need to explain how its small area of the wider industry will be able to turn impressive profits immediately. But with the market as a whole being so successful, that should not be a problem as long as the startup can show how integral it can be.

Place in Industry

That last point is very important. When we think of the betting industry, we naturally think of sportsbooks. That is the side of the industry that we are constantly shown through advertising campaigns and sponsorship deals. But there are all kinds of services that can be offered within the sector.

Battling the big sportsbooks at their own game might not be the best idea for smaller startups anyway. So, finding a niche or service that is needed within the gambling industry should be a priority. Once that has been discovered, explaining its importance to investors should be straightforward.

Figure 2 There is plenty of room for a well thought out startup in this industry

Marketing Strategies

We mentioned earlier that you will have noticed how ubiquitous sports betting advertising is these days. That is because this is one industry that has some of the most intensive and successful marketing strategies out there. Being successful – or a startup showing investors it can be successful – is paramount.

Any good funding pitch should include some mention of how the startup service will be marketed. But startups can really stand out by concentrating on the subject when talking to potential investors. The industry is very competitive and it is the marketing side of things that can make all the difference.

Be Transparent

Having a great idea and plan is all very well – and investors definitely want to see proof of that. But the ability to execute that plan is crucial. Once there is some kind of funding interest, startups should make sure that communication is ongoing and everything is as transparent as possible.

Investors don’t want to be surprised. So, in the same way that an investor will have been able to see a startup’s goals for the future were attractive, it will also want to know that the status of its funding is secure. Further funds will inevitably be needed, so this kind of relationship needs to be maintained even after the initial stage of investment.

By Admin

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