Sharp Alpha Advisors, a NYC-based venture capital firm, recently closed Sharp Alpha Fund I, a $10m venture capital fund investing in early stage sports betting technology companies.
The fund is backed by institutional investors, including Great Elm Group and the Dutch Sport Tech Fund, as well as a number of multi-billion dollar venture capital funds, family offices, and private equity groups. Other limited partners include senior executives from several of the world’s largest investment banks, hedge funds, and publicly traded sports betting companies.
The fund targets initial allocations averaging $250k in Seed and Series A financings, with plans to provide follow-on support in subsequent rounds. Sharp Alpha also maintains a co-investment vehicle that enables limited partners to invest additional capital in select deals alongside the fund. Through the use of this vehicle, the firm has made initial allocations in excess of $1 million.
In addition to investing capital, the vehicle provides portfolio companies with a host of advisory services and strategic resources. Through its extensive limited partner network, Sharp Alpha connects portfolio companies directly to the sources of revenue, brand awareness, and future funding that are critical to a startup’s success.
The fund has already deployed capital into 11 startups, including Players’ Lounge, GridRival, PickUp, and Prophet.
Led by Lloyd Danzig, Managing Partner, Sharp Alpha has created an advisory board including:
- Keith Horn, who was previously the COO of Elliott Management and Global Head of Leveraged Finance at Merrill Lynch;
- Emanuel Pearlman, the former Chairman of Empire Resorts and board member at several public companies;
- Adam Davis, the former Chief Commercial Officer at Harris Blitzer Sports and Entertainment and Chief Revenue Officer of the New Jersey Devils;
- Daniel Bernard, a Venture Partner at Mindspring Capital and Chairman of Redwood International Sports;
- Roy Behren, the President and Chief Investment Officer of a $5.2 billion asset manager specializing in merger arbitrage and former enforcement attorney for the SEC; and
- Don Kornstein, the Vice Chairman of Caesars Entertainment and former executive at numerous successful gaming companies.
All of the advisory board members are also investors in the fund.