Start-up BetDex raises $21m from investment round

Cryptocurrency exchange FTX, which was recently valued at $25bn after its own Series B-1 round closed in October, and San Francisco-based crypto investment firm Paradigm led the round.

Multicoin Capital, Hack VC, Lightspeed Venture Partners, Sino Global Capital, Solana Ventures, and Everblue Management also participated in the round.

“We are thrilled to be backing a team with deep industry expertise to transform the sports betting experience,” FTX co-founder and chief executive Sam Bankman-Fried said. 

“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 price and are excited to partner with BetDex to bring this vision to fruition.”

Paradigm investment partner Arjun Balaji added: “It feels obvious crypto will transform online sports betting. The BetDex team has the right combination of industry experience and technical skill to create something that shows the way forward for everyone working in the space.”

BetDex, which is based in Scotland, launched last month with the aim of delivering a “global sports betting protocol that enables users to trade bets at high speed and minimal cost with zero counterparty risk”. 

Its platform is due to launch for customers during the first half of 2022, and aims to marry cryptocurrency with sports, branding itself as the first decentralised sports betting exchange in the market.

Eccles, who left FanDuel four years ago, is serving as non-executive chair of BetDex, having co-founded the platform with Varun Sudhakar and Stuart Tonner. Sudhakar has been named chief executive and Tonner chief technology officer.

“Blockchain technology is set to revolutionise sports betting and we want to be at the forefront of that,” Eccles said. “It’s exciting to be founding the business with Varun and Stuart, and to be building it in Scotland. 

“We are energised to have the backing and wealth of expertise that comes with having Paradigm and FTX as cornerstone investors.”