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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 effective innovation teams is starting once again with a brand-new company - and has secured the biggest initial investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded dream sports betting wagering site FanDuel in 2009 in Edinburgh.
The new firm has seed funding of $21m.
It intends to introduce a brand-new open source software application platform, on which others can innovate in sports betting, in the first half of next year.
The company is recruiting personnel from a base in Scotland.
FanDuel was offered to Flutter - previously named Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders are in legal dispute with FanDuel's later stage financiers over the method which they structured a takeover, which left the Edinburgh group without a share of the increasing assessment.
Mr Eccles stated that a person thing he gained from the FanDuel experience was to pick financiers thoroughly.
He informed BBC Scotland: "We took a great deal of lessons from that, among which was the value of who we select as financiers in this brand-new company, to ensure their worths are aligned with ours, that they take their fiduciary responsibilities responsibly, which they're the best partners for us."
The $21m seed financing for BetDEX includes stakes taken by seven backers of US innovation companies, consisting of two big funds - Paradigm and FTX - which specialise in purchasing business running with crypto-currencies.
Varun Sudhakar, president of BetDEX, stated: "The sports betting wagering market charges high costs for poor items and limitations trades by its most effective users.
"BetDEX is diametrically opposed to this method. We will successfully contend versus incumbents with a noticeably superior item and low fees, which is now possible with the introduction of the blockchain technology."
As chairman of the new firm, Mr Eccles stated it might look familiar to retail punters used to existing online companies.
'Pool of talent'
However, he says that those who utilize its platform to run their own sports betting companies will have the ability to innovate and produce a wider variety of sports betting items.
He stated the normal share taken by online bookmakers is 7% to 10% of a stake, however BetDEX needs to enable for that to fall below 1%.
The company will establish its own wagering apps to run on the platform.
Mr Eccles stated these would take an "intelligent, thoughtful" technique to the way they are marketed to secure those who fight with issue gaming.
He stated the group of around 500 software engineers who helped build FanDuel from Scotland revealed that it stays the location to build a company. BetDEX has the very same head of technology, Stuart Tonner.
"A great deal of that [FanDuel] success was constructed on an extremely experienced, really gifted engineering team, that constructed this product that could process millions of bets and countless users.
"There's a real talent swimming pool of experienced engineers who helped us build our product and that's what we want to take advantage of for BetDEX as well."
Related subjects
Edinburgh
Sports betting
More on this story
Paddy Power buys dream sports betting site
23 May 2018
FanDuel founder leaves company
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Published
20 November 2017
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Sports Betting Innovator Launches Brand new Start up
Dusty Sturdivant edited this page 7 months ago