The founder of London's Fox Poker Club, Chris North, is using his experience and business savvy to help startup entities in the world of igaming find investors through a new crowdfunding platform.
GamCrowd, which is set to be based in the United Kingdom, will launch at the end of January and aims to bring together startups with investors that are not from the traditional banking or venture-capital worlds.
iGaming startups and potential investors can use the platform to get together and discuss ways to raise capital to launch successful businesses, and spur growth in the UK gambling industry. In recent times, venture capital firms have started reducing investment in gaming companies, and GamCrowd will hopefully make up for this loss.
"We intend to introduce investors with contacts and expertise to start-ups in the gambling industry across the world," said North. "As I have already learned, this will add tremendous value to the start-ups that are successful in being funded."
Experience Through Fox Poker Club
Chris North is using the same original business model used to create one of London's most successful gambling establishments, the Fox Poker Club, to establish GamCrowd.
The Fox Poker Club was founded by North and Ian Hogg, thanks to capital raised by a poker-dedicated gambling establishment. Thanks to North and Hogg's network of acquaintances and business partners, they were able to raise £1 million as seed capital to get the club off the ground.
The club was granted a full UK casino license in 2008 and opened its doors in 2010. By the time the club was purchased by gambling giant, Genting UK in a multi-million pound deal , it had attracted over 20,000 members.
A year later, Genting announced that it was closing the establishment and would eventually turn it into a full casino.
Crowdfunding as Effective Business Strategy
In recent years, crowdfunding has proven to be a very successful business strategy to bring together startups and potential investors and service providers.
Through the use of social network sites and crowdfunding technology, nearly £120 million was raised in the UK using this method, with an average 80% annual growth rate. Platforms such as Crowdcube have become market leaders and attract startups and investors in a number of sectors.