Cipher Sports Technology Group, an Australian sports betting company, has raised $ 5 million in Series A competition.
The company plans to use the money to grow in the United States, a market that already exists and where it sees potential growth because more people are free to bet online. Cipher also does business in Australia and plans to expand to other countries in the next 12 to 18 months.
Cygnet Capital, an economic group based in Melbourne, Australia, led the round. A group of precious people took part. Cipher will not disclose his financial statements, income or other company information.
Cipher and its owners use consumer-oriented websites such as dimers.com in the United States with industry expertise that helps retailers predict game results. The company makes money by advertising websites, and also sending online game books such as BetMGM, DraftKings and PointsBet.
Cipher also makes money from business to business, including the sale of goods and services in sports books and media companies. For example, in May, Cipher closed its partnership with Advance Local, a US publishing company, while Cipher’s articles and materials are displayed on PennLive.com, LehighValleyLive.com and GulfLive.com’s subsidiary owned by Advance.
Cipher is operating in a crowded multi-stakeholder multidisciplinary organization such as Action Network, which Better Collective earned last year $ 240 million, and Covers Media Group, which Tribune Media purchased in 2015.
“We’ve built a very strong brand and a gym,” said Adam Fiske, Cipher’s chief executive officer. “But now that we have funded the headquarters, we can accelerate growth and start competing with current leaders like Action Network and Covers…. Our goal is to make the Dimers one of the US.
Cipher was created last November through a merger of iRival Media and Hypometer Technologies, both Australian gaming companies. Hypometer focused on information and analysis, while iRival focused on sales and marketing. The two have already worked together.
Nick Slade, who co-founded Cipher in 2019 with Fiske, is Cipher’s chief executive. Meanwhile, Hypometer co-founders Katie Prowd and Darryl Woodford are Cipher’s chief operating officer and head of technology, respectively. Hypometer was launched in 2015.
“Coming together has been an easy process,” Fiske said. “We have a group of like-minded people with different talents. It only made sense for us to attack the (US) market together instead of being competitive.”
Although Cipher has strong roots in Australia and has access to the website, which includes the Australian Football League and the National Rugby League, Fiske said, “90% of our business is focused on the US because growth and opportunities are enormous.”
Fiske added that online betting has been legal in Australia since 2001, so the potential for growth is not as great as in the US, which approved online gambling in 2018. From now on, online gambling is legal in 20 countries with Washington, DC and waiting in Kansas, Maryland and Ohio, according to the Action Network. Australia’s population is about 26.1 million compared to 332.4 million in the US
Cipher currently has 20 full-time employees, 15 in Australia and five in his US office in Manhattan’s Flatiron District. It plans to recruit 10 more workers in the next few months, five each in Australia and the US
Fiske acknowledged that startups like Cipher have had a hard time raising money in recent months as financial institutions and investors see things getting worse in the coming months. However, they do not see Cipher having to raise any more money in the near future.
“Indeed, attitudes in the market have changed,” Fiske said. “You see it. But we are very confident in what we have been doing and who has the money and who owns the shares. We are the best in the whole market, and we think it will come back very strong. I’m still in the early days of betting on the official online game in the US, so we are very excited about what the future holds for us and for all companies. ”