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innovator launches new start-up
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17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
One of Scotland's most successful technology teams is starting once again with a brand-new company - and has protected the most significant preliminary financial investment of any British start-up business.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting site FanDuel in 2009 in Edinburgh.
The new company has seed funding of $21m.
It intends to introduce a new open source software platform, on which others can innovate in sports betting wagering, in the very first half of next year.
The company is recruiting personnel from a base in Scotland.
FanDuel was offered to Flutter - formerly named Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders are in legal conflict with FanDuel's later stage financiers over the way in which they structured a takeover, which left the Edinburgh group without a share of the increasing evaluation.
Mr Eccles stated that a person thing he gained from the FanDuel experience was to pick investors thoroughly.
He informed BBC Scotland: "We took a lot of lessons from that, among which was the importance of who we choose as investors in this brand-new service, to guarantee their worths are aligned with ours, that they take their fiduciary responsibilities responsibly, which they're the right partners for us."
The $21m seed financing for BetDEX consists of stakes taken by 7 backers of US technology firms, consisting of two large funds - Paradigm and FTX - which specialise in buying business operating with crypto-currencies.
Varun Sudhakar, chief executive of BetDEX, stated: "The sports betting wagering industry charges high rates for poor items and limitations trades by its most successful users.
"BetDEX is diametrically opposed to this method. We will successfully contend versus incumbents with a considerably exceptional item and low charges, which is now possible with the development of the blockchain technology."
As chairman of the new company, Mr Eccles stated it could look familiar to retail punters utilized to existing online companies.
'Pool of skill'
However, he says that those who use its platform to run their own wagering firms will have the ability to innovate and create a larger series of wagering items.
He stated the normal share taken by online bookies is 7% to 10% of a stake, but BetDEX should enable for that to fall listed below 1%.
The business will establish its own wagering apps to run on the platform.
Mr Eccles said these would take an "smart, thoughtful" approach to the way they are marketed to protect those who deal with issue gambling.
He said the group of around 500 software application engineers who assisted develop FanDuel from Scotland revealed that it remains the place to develop a company. BetDEX has the exact same head of technology, Stuart Tonner.
"A lot of that [FanDuel] success was constructed on an extremely knowledgeable, very skilled engineering team, that constructed this item that could process millions of bets and millions of users.
"There's a real talent swimming pool of knowledgeable engineers who helped us construct our item and that's what we wish to utilize for BetDEX too."
Related subjects
Edinburgh
sports betting wagering
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FanDuel creator leaves business
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20 November 2017
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Sports Betting Innovator Launches new Start up
esmeraldadoss edited this page 2025-01-02 01:42:54 -06:00