News
September 21, 2016Lottery Rewards, Inc., a StartUp NY Company, Closes on $1.9M Investment Round
Lottery Rewards, a startup located in the New York BizLab, and participant in StartUp NY, has closed on a seed investment round, receiving $1.9 million to fund platform development and a go to market strategy. Lead investors include Velan Ventures, formed by brothers Guha Bala and Karthik Bala, founders of video game company Vicarious Visions, and Mike Marvin, co-founder and former Chairman and CEO of MapInfo.
Guha Bala said Lottery Rewards was a good fit for a Velan Ventures investment because it is an entertainment platform in a growing industry.
“People play the lottery for a variety of reasons, but chief among them is the entertainment value. Lottery Rewards’ second-chance offering helps to keep players engaged and coming back,” Bala said. “That’s similar to video games, which engage players to get to that next level. Velan Ventures’ investment is designed to help Lottery Rewards also get to the next level.”
Lottery Rewards, founded by Jeff Perlee, the former head of the New York State Lottery, moved into the BizLab in October 2015. The Company’s platform enables lottery players to scan or enter any non-winning lottery ticket for a free “second chance” to win cash and prizes. The recently closed investment round will enable the Company to expand its user base and broaden the entertainment options available to users.
“We wouldn’t have landed this investment without the New York BizLab and the efforts of managing director Rick D’Errico,” Perlee said. “What the Bala brothers and Mike Marvin bring to the table is so much more than just funding. They know how to grow successful companies.” he added.
In April D’Errico invited Guha Bala to visit the BizLab in downtown Schenectady. During Bala’s tour of the facility, he was introduced to Perlee and began peppering Perlee with questions about the business.
“During that very brief meeting, Guha immediately grasped the Lottery Rewards concept,” D’Errico said. “After that meeting, the conversation between Jeff and Guha continued and eventually led to this major investment. I’m thrilled that the BizLab was able to play a part in making this connection.”
Antonio Civitella, founder and president of the New York BizLab and CEO of Transfinder, a global logistics software company, said Velan Ventures’ investment in Lottery Rewards was important for a number of reasons.
“This investment is significant because it validates not only Lottery Rewards’ business model but the BizLab’s purpose to help tech companies grow smart and grow fast,” he said. “For a New York BizLab-based startup like Lottery Rewards to land backing from the likes of Mike Marvin and Guha and Karthik Bala is a testament that this region has great ideas that can be cultivated into significant businesses.”
