Angel-backed Karma Gaming, a Halifax, Nova Scotia-based software developer of digital lottery games, has obtained $4 million in a Series A financing round. The deal was led by Canadian venture capital firms Rho Canada Ventures and Innovacorp. Funds will be used by the company to increase production and invest in sales channels. Rho partner Jeff Grammer and Innovacorp investment director Thomas Rankin will join Karma’s board of directors.
Karma Gaming, a developer of next-generation casual games for lotteries worldwide, today announced a $4 million Series A round of financing.
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.
The round was led by Rho Canada Ventures and Innovacorp. Jeff Grammer, partner at Rho Canada Ventures, and Thomas Rankin, investment director at Innovacorp, will join Karma’s board of directors.
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 needs 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 younger generation.”
The company plans to use the new funding to increase production output and invest in sales channels to accelerate growth.
“This funding will enable us to scale our production output, meet our customer demands and license 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 contracts in four countries and is launching its first games later this year in the United States.
“As investors and partners, we try to back innovative founders pursuing big ideas,” said Grammer. “Karma has identified a global opportunity and understands the complexities of operating in this space. They have amazing traction already, and we are thrilled to partner with them for their next chapter of growth.”
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 who have grown up online. The games are licensed to regulated lotteries all over the world. For more information on Karma, visit www.karmagaming.com or follow on Twitter at @KarmaGaming.
About Rho Canada Ventures
Rho Canada Ventures is affiliated with Rho Capital Partners, focusing on early-stage investing in Canada’s most innovative technology companies. The Rho Canada Ventures team comprises a unique combination of entrepreneurial, operational and venture investment experience in the United States and Canada. With a combined 80 years of experience, the company offers entrepreneurs the expertise to turn Canadian innovators into global leaders. Rho Canada Ventures’ portfolio companies are a diverse group of investments that span new media, mobile applications, wireless infrastructure, semiconductors and materials, and software (including SaaS). For more information, visit www.rhocanada.com or follow on Twitter @rhocanada.
Based in Halifax, Innovacorp is Nova Scotia’s early-stage venture capital organization. Target industries include information technology, clean technology and life sciences. Early-stage investment is at the core of Innovacorp’s business model, but the organization also provides hands-on business advisory services, tailored to meet the unique – and evolving – needs of each of the promising technology companies in its portfolio. It also gives entrepreneurs access to world-class incubation facilities and an international network of expert advisors. For more information visit www.innovacorp.ca or follow on Twitter @innovacorp.
For more information, please contact:
CEO, Karma Gaming
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