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Sharp Alpha Closes Sports & Entertainment Fund after Exceeding $25 Million Target

New York City-based venture capital firm Sharp Alpha Advisors has successfully closed its second investment fund, Sharp Alpha Fund II, securing over $25 million in capital.

The fund is dedicated to early-stage investments in sports, gaming, and entertainment sectors. It targets seed investments ranging from $1 million to $2 million, with plans to support 15 startups specializing in competitive entertainment. This includes technology firms in sports betting, fantasy sports, and streaming industries, according to managing partner Lloyd Danzig.

Sharp Alpha Fund II has attracted backing from public companies, U.S. financial institutions, professional sports team owners, top venture capitalists, and other investment channels. Additionally, the firm operates a co-investment vehicle, enabling limited partners to invest additional capital in selected deals alongside the fund.

Beyond financial support, Sharp Alpha Advisors offers extensive resources and opportunities to its portfolio companies, including assistance with revenue generation, fundraising, brand awareness, commercial strategy, and product development. The fund was oversubscribed, reflecting strong investor interest.

Existing investments in Sharp Alpha Fund II include C15 Studio, the operator and distributor of Formula 1’s new streaming channel.

Sharp Alpha’s first fund, which closed in October 2021, raised $10 million for betting technology startups. It provided financial backing to companies like Prophet, the first regulated U.S. sports betting exchange, and others including and Betcha, which was acquired by Vivid Seats Inc. in December 2021.

The firm’s advisory board features prominent industry figures such as Don Kornstein, vice chairman of Caesars Entertainment, Emanuel Pearlman, former chairman of Empire Resorts, and Keith Horn, founder of Loring Capital Advisors and former COO of Elliott Management.

Lloyd Danzig, recently recognized as one of Business Insider’s Top Venture Capitalists in Sports and ELG’s 40 Under 40, highlighted the significant opportunities at the intersection of sports, gaming, media, and technology.

“The competitive entertainment category is experiencing exponential growth but at the same time is desperate for innovation that early-stage companies are best positioned to supply,” Danzig stated. “We are entering the most favourable period in the last 15 years to bet on great founders.”

In an interview with Forbes, Danzig emphasized Sharp Alpha’s investment strategy, focusing on companies that create engaging and immersive experiences. “We invest in companies that provide an adrenaline rush, making users feel deeply connected to the content. This immersive engagement is economically and experientially desirable.”

Danzig noted that Sharp Alpha is committed to identifying and supporting the next big trends in competitive entertainment. “No one was looking for micro-betting companies when Simplebet raised their first round, just as no one was looking for a short-term home rental marketplace when Airbnb was founded. We like to back amazing entrepreneurs who identify emerging trends in competitive entertainment.”

Sharp Alpha Advisors plans to continue leveraging its expertise and network to support groundbreaking startups in the sports, gaming, and entertainment sectors, further solidifying its position as a leading venture capital firm in the competitive entertainment industry.


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