Halifax, Nova Scotia-based Karma Gaming, a developer of next-generation games for lotteries worldwide, has secured an additional $1 million in Series A financing from Canadian venture capital firm Vanedge Capital. The funding tops up a $4 million raise obtained from Rho Canada Ventures and Innovacorp in July. Proceeds from the deal will be used to increase production and invest in its sales channels to accelerate growth. Karma raised an initial seed round of $1.2 million from angel investors in 2012, bringing its total funding to date to $6.2 million.
PRESS RELEASE
Karma Gaming Raises Additional $1M Series A to Gamify Lottery
Karma Gaming, a developer of next-generation games for lotteries worldwide, today announced a $1 million Series A round of financing from Vanedge Capital in Vancouver in addition to its recent $4 million raise.
The funding will enable Karma to commercialize the contracts acquired earlier this year in four countries around the world and deliver next-generation digital lottery games.
Karma is solving a problem that affects regulated lotteries around the world: Their audiences are aging, and young people are not interested in buying their products.
“The thrill of winning money is timeless and borderless, but the current lottery solutions do not meet the expectations of digital customers,” said Paul LeBlanc, co-founder and CEO of Karma Gaming. “Lotteries all over the world are looking to revitalize their product offerings and become relevant to a broader audience.”
The company plans to use the new funding to increase production and invest in its sales channels to accelerate growth. “This funding will enable us to scale our production output, meet our customer demands and licence our games all over the world,” LeBlanc said.
Founded by LeBlanc and Jay Aird, Karma raised an initial seed round of $1.2 million in 2012 from angel investors, including Silicon Valley’s Paul Gauthier. From the seed round, the company secured a $4 million round of financing in July 2013 from lead RHO Ventures and Innovacorp.
“We were immediately taken by Karma’s plans to help update the lottery industry,” said Paul Lee, partner at Vanedge Capital. “The lottery industry sits on the brink of a paradigm shift towards the web and mobile with new and exciting customer offerings and experiences. Karma’s placement at the forefront of that transformation makes it a very exciting time to help guide and shape the evolution of lottery experiences worldwide.”
About Karma Gaming
Karma Gaming, based in Halifax, Nova Scotia, Canada, was formed to connect lotteries and casual gamers. The company has created next-generation games designed to appeal to consumers online. The games are licensed to regulated lotteries all over the world. For more information, visit www.karmagaming.com or follow on Twitter at @KarmaGaming.
About Vanedge Capital
Vanedge Capital is a Vancouver, B.C.-based venture capital fund focused on investments in interactive entertainment, digital media and enterprise technologies businesses. The fund managers have extensive experience and relationships in this sector and have built and led world-class companies in video games, computer animation and enterprise software, among others. For more information, visit www.vanedgecapital.com.
For more information, please contact:
Paul LeBlanc
CEO, Karma Gaming
paul.leblanc@karmagaming.com
Halifax, Nova Scotia, September 11, 2013
Corporate Office
1400-1801 Hollis Street Halifax NS B3J 3N4 Canada
T 902.424.8670 F 902.424.4679
Toll Free (Atlantic Canada): 1.800.565.7051
info@innovacorp.ca
Photo courtesy of Shutterstock.
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