Venture capital firm Sharp Alpha Advisors has previously put money into sports-themed social clubs Ballers and Poolhouse, as well as SlamBall—the full-contact basketball-football hybrid played on trampolines.
Now, armed with a fresh $150 million to deploy over the next two years, the firm intends to target consumer-facing businesses in online gaming, prediction markets, sports media, and more. The new fund will use an investment structure distinct from Sharp Alpha’s previous funds, Front Office Sports has learned.
The fund, Sharp Alpha UA Fund I, will offer “non-dilutive” capital, or deals that don’t involve portfolio companies giving up equity, a spokesperson for the firm tells FOS. The idea is that the fund will find companies that are either profitable or close to breaking even and are ripe for customer growth. Following the investment, Sharp Alpha will recoup its money from the revenue generated by new customers it helped bring in.
The $150 million comes from a “large institutional partner,” although the spokesperson declined to say who it is at this time. Sharp Alpha is not seeking additional investor funds for now. The fund will be managed by Sharp Alpha’s Lloyd Danzig, alongside a group of individuals who come from areas like direct lending, institutional credit, quantitative finance, and consumer growth equity.
Individual investments will range between $4 million and $30 million, with the potential for additional investment once a relationship has been established. The fund will focus on businesses based in the U.S., even if those companies generate their revenue elsewhere in the world. In addition to online gaming, prediction markets and sports media, the fund will target investments in areas like e-commerce, health and wellness, and interactive entertainment.
The new fund comes a few months after Sharp Alpha co-led a $20 million investment into Ballers, which describes itself as a “first-of-its-kind hospitality-driven social sports venue.” That investment round also featured athletes like tennis legend Andre Agassi, NBA star Tyrese Maxey, and MLS goalkeeper Maarten Paes. The flagship Ballers location, in Philadelphia’s Turbine Hall, opened last month.
This represents the third fund under the Sharp Alpha umbrella, although the first two funds provided target companies with equity checks.
In addition to Ballers, Poolhouse and SlamBall, Sharp Alpha has invested in Jackpot.com, which allows consumers to buy state lottery tickets using an app, as well as GridRival, a fan engagement platform for motorsports, and micro-betting company Kero Sports.
