eSports startup raises $20 million Series B led by ARK Invest

An eSports startup raised $20 million in a Series B round last month. ARK Invest led the round, with additional participation from several other venture capital firms. The company provides white-label interactive gaming competitions that businesses can use as loyalty programs. Customers include Five Iron Golf, Dave & Buster's, and Chess King.

Pitch strategy The founder adjusted the fundraising presentation to address artificial intelligence at the outset. The revised deck stated that increased leisure time from AI adoption would expand demand for games, while lack of AI progress would make a non-AI investment a diversification benefit.

The approach followed repeated instances in which investors ended meetings after learning the company was not focused on AI. The round occurred during Q4 2025, described by the founder as peak AI funding interest.

Investor connection The lead investor connection began with a casual meeting at a New York darts bar. The contact later introduced the founder to the ARK investment team, which participated in an earlier funding round before leading the Series B. The company reported consistent year-over-year growth and cited a total addressable market covering most American adults aged 18 to 70.

ARK Invest had previously invested in and later divested from another eSports company at a loss.