Betegy, a company that specializes in data visualizations, automated graphics for on-air and retail, as well as casino marketing assets for operators, plans to utilize new funding to expand its presence in the U.S. This intention follows a previous funding round led by JKR Investment Group, which took place in 2020. iGB spoke with Betegy’s founder and CEO Alex Kornilov and Yolo Investments founder and GP Tim Heath to discuss the deal and Betegy’s strategy for adapting its offerings to the U.S. market.
Tim Heath highlighted Betegy’s role in automating what was once a labor-intensive process of transforming large sets of data into high-quality content. He noted its successful implementation within the Sportsbet.io brand and the synergies that could be found across various Yolo Investments portfolio companies. Heath emphasized that to remain competitive today, betting and gaming offerings must provide a personalized, engaging experience, which Betegy enables.
When asked about the expansion opportunities this funding round will provide, Kornilov explained that goals were established in the summer of 2021. During that time, Betegy was seeing considerable growth in the U.S., prompting a need for additional investment. Kornilov credited the previous round with helping the company understand how to market its products effectively in America, specifically noting that the launch of their broadcast product was a significant success, marked by a deal signed with the World Series of Poker.
Kornilov recounted the three-month assessment period they undertook to determine the company’s market position, revenue potential, and product offerings in preparation for raising funds. Heath, who had already been a client through SportsBet.io, invested after extensive discussions, having firsthand experience with Betegy’s products. Kornilov recognized the transition from a European business model to a U.S.-focused one as a significant operational challenge that must be addressed before future investment rounds.
Discussing how to capitalize on existing relationships with media and sports betting partners, Kornilov stated that there are multiple dimensions for convergence, bridging sports betting and media across Europe and the U.S. Initial conversations with major media companies began years ago, laying the groundwork for integrating betting into their offerings in a modern way.
Kornilov addressed the challenges of raising capital amid shifting macroeconomic conditions, explaining that funding efforts must navigate both overarching market climates and specific company circumstances. He noted that while broader economic factors can create tension, Betegy’s focus on its growth metrics and operational efficiency made the investment opportunity appealing. Unlike many unprofitable companies that are struggling, Betegy’s lean business model allowed for more favorable conversations with venture capitalists, turning challenging circumstances into advantages.
Heath agreed that while innovative products remain vital, they are not enough on their own. He stated that the Yolo Investments team prioritizes understanding what value they can add to potential investments and ensuring alignment with their broader network, emphasizing their goal of being active supporters rather than passive investors.
Kornilov highlighted the significance of unique and engaging content for the sportsbook ecosystem moving forward. He noted that successful marketing strategies must blend performance marketing and brand-building efforts. He described performance marketing as labor-intensive at first but ultimately more effective over time as it leads to greater customer engagement at reduced costs.
Kornilov expressed excitement about the convergence of broadcasters, sports media, and sports betting in the U.S., citing the readiness of American audiences compared to their European counterparts. The cultural connection to fantasy sports in the U.S. has primed the audience for a unified betting and sports experience.
Heath pointed out that despite the impressive growth in the U.S. market, it is still in its early stages. While some large operators dominate due to regulatory landscapes, he sees lower barriers for suppliers, presenting investors with unique opportunities. Yolo Investments is already invested in several companies thriving in the U.S. and remains open to exploring new ventures that offer innovative solutions.
