Cipher Sports secures investment for expansion

Cipher Sports secures investment for expansion

A Series A investment round has raised $5 million for the Cipher Sports Technology Group. The Australian sports betting operator expects the money to help it fulfill its goals, as it is ready to expand internationally.

The initial expansion of the US market will be supported by the investment. Several false starts recently in a number of states, but Cipher already has a presence there. It will be ready when more states come online. Within the next 18 months, it plans on expanding to other countries.

According to a company press release, Cygnet Capital was the leader in the investment round. It received support from a number of high net worth individuals. Post-money values, revenues, and any other financial information were not disclosed by Cipher.

sports betting sites such as dimers.com are operated by Cipher. The company says it has proprietary technology that helps gamblers better predict the outcome of games. The company makes money from advertising on the websites and referrals to online betting sites.

The B2B channel is where Cipher makes revenue. Products and services are sold for media companies and sportsbooks. In May, the company closed a deal with Advance Local, a US publisher. PennLive.com, LehighValleyLive.com, and GulfLive.com websites became part of the deal with Cipher. All of the platforms are owned by Advance.

Adam Fiske, the chief executive of Cipher, said that the company has built a really strong brand and a great database of sports bettors. He said that the new funding will allow the company to compete with current market leaders.

Nick Slade is the chief content officer at Cipher. The chief operating officer and chief technology officer are both from Hypometer.

Fiske said that finding common ground for the new sportsbook was an easy process because of their long-standing working relationships. He said that it was more practical to work together than to compete in the US market.

The US is the focus of most of the company’s business because it offers so many opportunities.

Since 2001, Australia has had legal sports betting. The potential for growth in Australia is lower than in the US. Half of the states and Washington, DC, already have legal sports betting.

The rules for the markets in Kansas, Maryland, and Ohio have been finalized. California, North Carolina, and several other states may find a path to legalization next year.

Fiske admitted to Forbes that some startups have had difficulty raising capital. It is due to hesitation on the part of venture capital firms, investors, and others. Online sports betting, online gambling, and other non-essential spending could be affected by an economic slowdown. Fiske doesn’t think Cipher will need to raise more money in the near future.

Summary:

Australian sports betting startup Cipher Sports Technology Group has raised $5 million in a Series A funding round led by Cygnet Capital, an Australian investment firm based in Melbourne. It also gained support from a number of “high net worth” individuals. Cipher plans to expand to other countries within the next 12-18 months.