Cipher Sports Technology Group has secured capital to further its US sports betting ambitions as Australian-based investment firm Cygnet Capital led a $5m Series A funding round into the firm.
Cipher boasts advanced predictive analytics technology alongside its consumer brand Dimers.com and a brand of B2B products which put it ‘on the radar’ of a number of investment vehicles.
Following a due diligence process of several investment groups, Cygnet Capital was the group that led the funding, allowing Cipher to ‘rapidly make inroads’ in the US sports betting market.
Cipher CEO Adam Fiske noted: “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.
“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.”
Entering the North American market in 2020 via its Dimers.com brand, Cipher has made progress in the US which will be accelerated by Cygnet’s funds.
Cygnet offers a ‘unique approach’ to investment that differs from traditional venture capital firms, as it invests over multiple rounds as a company either stays private or goes public.
“The team at Cipher Sports Technology Group has really impressed us the whole way through this process and we’re thrilled to be involved in such an exciting company with major international ambitions,” added Cygnet Capital Co-Founder Jonathan Rosham.
“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 has links to the sports betting industry; a part-owner of Verry Elleegant – the winner of the $8m Melbourne Cup in 2021, he is a prominent figure in the Australian horse racing industry.
Cygnet has a number of investments in the global wagering industry and remains ‘excited’ at the prospect of taking advantage of the opportunities presented by online wagering in the US.
“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,” Rosham continued.
“The Cipher team has a great deal of experience and expertise that 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.”
He concluded: “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.”