Pulse
SPORTS BETTING SPORTINGWIN
SportingWin: How-to guide to securing funding
SportingWin’s Mark Chakravarti explains that to rise to the top in the online gambling sector, the ingredients of grit, determination, ambition and an amazing product offer are simply not enough - investment remains fundamental if companies are to shift from minnow to monster.
Te online gambling sector has always attracted new companies seeking to leverage the huge opportunities on the table and take their organisations from start-ups to titans of the industry. Tose that enter the fray with ambition, passion, dedication and a product or service that moves the needle have what it takes to succeed, but they cannot rely upon this alone.
To establish and grow a business in this sector requires investment, and those that are able to secure capital are ultimately the ones that rise to the top. SportingWin counts itself among the number of start-ups looking to take the fight to the incumbents and to do this is it seeking investment ahead of its imminent debut in the Bulgarian market.
Why is funding so important for start-up businesses and operators?
Capital has always been important for businesses to thrive in the gambling sector, but now more than ever it is critical for organisations, in particular operators, to build the foundations they need to drive growth in markets around the world.
Te cost of doing business has increased significantly in recent years as more markets regulate and operators must go through the process of securing a licence in each jurisdiction. Most regulators even require a minimum capital requirement in order to award a licence.
For larger, established organisations these P114 WIRE / PULSE / INSIGHT / REPORTS
minimum capital requirements and licensing costs are not too problematic, but for a start-up it is a major hurdle as the levels of capital needed are significant and the rules around securing the required investment increasingly strict.
In short, investment is what allows small operators to secure the necessary licences to enter the markets they wish to target, establish their business and then deploy their plans and strategies for taking share away from their rivals.
What challenges are businesses facing when it comes to securing funding?
Securing investment in line with the stringent requirements set by regulators, especially when it comes to providing transparency around source of funds.
The cost of doing business has increased significantly in recent years as more markets regulate and operators must go through the process of securing a licence in each jurisdiction. Most regulators even require a minimum capital requirement in order to award a licence.
Take Bulgaria as an example. Investment must come from a local source that meets the standards set by the regulator. Tis is easier said than done and can mean taking steps such as appointing a dedicated CEO and onboarding local experts – which is what we have done.
Another significant challenge is agreeing on the valuation of the business – operators always want the highest possible valuation while investors always say the valuation is too high. Tis can mean taking new and innovative approaches to funding rounds.
Finally, the operator must present an exciting investment opportunity. Te business must have great fundamentals, be run by a team that has a proven track record and, perhaps most importantly, deliver a predicted return in excess of x10 for the investor.
How can these challenges be overcome?
In order to meet the requirements set by regulators, small businesses need to work closely with the regulator and understand what they are seeking. As mentioned above, this led us to appoint a dedicated CEO in Bulgaria who in turn identified local experts to work with.
Not only were they able to help identify possible investor partners, they also proved invaluable when it came to meeting the strict due diligence criteria and other administrative obstacles that we needed to navigate. Recruiting the best talent comes at a price but one that is worth paying.
In terms of valuing the business and striking a
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134
