Decentralized sports prediction market Frontrunner raised $4.75 million in a seed round led by Susquehanna Private Equity Investments. Other investors in the round include SOMA Capital, Toy Ventures, Ledger Prime and WAGMI Ventures, according to the release.
Frontrunner is a prediction market that simplifies sports betting by removing the complexity of betting odds. Instead, individuals buy and sell shares in teams and players using crypto across sports markets such as the NBA, NFL and others. Prediction markets are like futures markets. In the futures market, traders are betting on the future price of an underlying asset. In prediction markets, contracts pay out based on the outcome of future events.
The startup launched on testnet last quarter enabling people to test the platform without needing to spend crypto. Its mobile app is projected to be ready by the end of January. The fundraise closed in May. The proceeds have been put toward product development, team growth and securing licensing.
“We believe that the open and decentralized platform Frontrunner is building will bring together sports fans and betting enthusiasts from all around the world," said Dean Carlson, head of digital asset investments at Susquehanna Private Equity Investments LLP in a statement.
Frontrunner aims to operate as a fully licensed platform. It’s hoping to receive an offshore gaming license in the Isle of Man in the first quarter of next year, which means it will be able to legally operate in a variety of jurisdictions including Canada, Mexico, Africa, Asia as well as parts of Europe and South America.
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