Smarkets, a UK-based peer-to-peer betting platform, has raised $2.3m in its series A round from a consortium led by T-Venture, the corporate venturing unit of Germany-based phone operator Deutsche Telekom.
Venture capital firm Passion Capital reinvested in the B round having seeded Smarkets in its White Bear Yard incubator.
Randeep Wilkhu, senior investment manager at T-Venture, and Robert Dighero, angel investor and partner at Passion Capital, have joined Smarkets as board members.
Jason Trost, chief executive of Smarkets, said: “With the expertise of an established company like Deutsche Telekom behind us, we’re looking to find the right growth strategy for Smarkets to make a major impact on the competitive online betting industry.
“In the role of the industry challenger, we’re looking to disrupt the market by offering a pure exchange experience, characterised by industry-leading low commission, high liquidity and the best trading experience.”
One potential investor that took a look at Smarkets for the round said it had to pass because its investors avoided the gambling industry. He added: “Technically, Smarkets is a tech platform since they take not principal risk, [and] I would have loved to have been a new shareholder!
“Business is growing very nicely and they are cracking the customer acquisition model and rolling out new products.”