Esports betting platform Midnite secures £12m in funding as part of global expansion

midnite esports betting investment

UK Gambling Commission-licensed esports betting platform Midnite has announced the first closing of a $16m (£11.85m) series A funding round.

As part of the round, existing investors increased their investment in Midnite, with notable previous backers of Midnite including Makers Fund and Venrex.

The round was led by The Raine Group, a global merchant bank focused on technology, media and telecommunications. Raine co-founder and partner John Salter will join Midnite’s board of directors and MD Garrett Gomes will become a board observer.

Proceeds from this round will be used to help fund Midnite’s growth initiatives, including its sportsbook, ‘CashMode’, which allows gamers to bet on their own gameplay for cash prizes and ‘Casino’, a casual casino and mini-games designed for gamers, which will launch in 2022.

The funding follows a $2.5m raise made by Midnite in summer 2020.

Midnite was founded in 2018 by Nicholas Wright and Daniel Qu, gaming industry product specialists who previously created Dribble, a daily fantasy sports platform. The team worked closely with UK operator Sky Bet to launch the platform.

“We’re thrilled to be partnering with Raine, one of the most successful investors in gaming, as we seek to expand globally.”

Nicholas Wright, Midnite

The company is currently licensed with the UK Gambling Commission and is pending licensing approval with the Malta Gaming Authority. Outside of the UK, Midnite has held a soft launch in Brazil and next expects to enter into the Mexico market, which will be accelerated by a partnership with a Mexican operator.

Raine has been investing in the gaming sector since its inception in 2008, with early investments in DraftKings, Jackpocket and Mythical Games, among other companies.

Last year, Midnite became the first betting partner of a Call of Duty League team after sponsoring London Royal Ravens.

“We pride ourselves on leveraging the best forms of technology, fan-centric features, and in-house models to offer next level experiences to our users,” said Nicholas Wright of Midnite.

“We’re thrilled to be partnering with Raine, one of the most successful investors in gaming, as we seek to expand globally. Raine’s funding, as well as its strong relationships in the gaming industry, will be extremely valuable to us as we move forward with our strategic goals as the esports market continues to rapidly grow.”

The Raine Group co-founder and partner John Salter added: “Midnite employs a product-first growth mentality, and we have been impressed by its founders and fully believe in their vision for the company. Their talented and dedicated team is passionate about changing the way fans experience the games they love, and we look forward to helping them create the next generation of sports betting.”

Related article from 2020: Interview with the UK’s first pro gamer on joining Midnite, how esports betting can lift grassroots esports and how the lockdown impacted the industry

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