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New York startup Lucra has raised $10 million to grow its B2B gamification software business.

Why it matters: The investment bets on rising interest in gamifying in-person and online experiences and supports businesses' desires to create customer loyalty.

How it works: Lucra offers software that companies can use to gamify their own apps, allowing users to challenge each other on games and earn rewards. 

The startup has 17 partners, including Dave & Buster's, Five Iron Golf, TouchTunes, RPM Raceway and Hollywood.com.

Zoom in: 7GC, SeventySix Capital and Major League Pickleball founder Steve Kuhn co-led the latest funding round and were joined by basketball star Giannis Antetokounmpo, Ark Invest and Simplex Ventures. 

Lucra CEO Dylan Robbins says the round is not labeled but is at a premium to its last valuation.

Prior, Lucra raised a $10 million Series A from Raptor Group, SeventySix Capital, Victress Capital and others and a $1.8 million seed round.

What Giannis is saying: "Since stepping into the NBA, I've realized just how integral technology has become in enhancing the experience of watching live sports and enjoying casual games. My investment in Lucra reflects my belief in its potential to shape the future of fandom," Antetokounmpo said in a statement.

Catch up quick: Robbins and COO Michael Madding were inspired to launch the startup due to their ongoing back-and-forth friendly wagers over their 15-year friendship and the legalization of sports betting. They ideated while at Stanford Graduate School of Business and founded it in 2019.

Lucra began with its own consumer app, attracting 150,000 customers, and pivoted to B2B after a potential client and now investor, Kuhn, expressed interest in white-label software. The startup now makes money through licensing fees and revenue sharing.

"We're not trying to bring competition where it doesn't exist," Robbins says. "We're trying to digitize what's an already happening fun interaction for fans and actually give them a platform to do it with incentives to do it on our platform."

The startup has about 30 staffers, working remotely with the CEO in New York, COO in London and CTO in South Carolina.

What's next: Lucra is releasing a tournaments product with Five Iron Golf next year, expanding from peer-to-peer challenges to larger competitions. 

The startup plans to launch a web product and expand from the U.S. to the U.K. next year.

Lucra is seeking more partners for its two products. Dave & Buster's uses Lucra's recreational software development kit product for friendly competition across its games, but will soon add its free-to-play sports product to earn rewards when making challenges for a live sports game.

Exclusive: Gaming startup nets $10M round that includes NBA star

Dave & Buster's uses Lucra's gamification software.

Giannis Antetokounmpo #34 of the Milwaukee Bucks dunks the ball during the game against the Indiana Pacers during a Emirates NBA Cup on November 22, 2024 at Fiserv Forum Center in Milwaukee, Wisconsin. 

Giannis Antetokounmpo is among the Lucra investors. Photo: Gary Dineen/NBAE via Getty Images

New York startup Lucra has raised $10 million to grow its B2B gamification software business.Why it matters: The investment bets on <a class="gtmContentClick" data-vars-link-text="rising interest in gamifying" data-vars-click-url="https://www.axios.com/2024/10/29/stagwell-pro-sports-football-ar" data-vars-content-id="56d9113d-232e-4087-a797-77faf7fa5647" data-vars-headline="Exclusive: Gaming startup nets $10M round that includes NBA star" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2024/10/29/stagwell-pro-sports-football-ar" target="_self">rising interest in gamifying</a> in-person and online experiences and supports businesses&#x27; desires to create customer loyalty.

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Exclusive: Gaming startup nets $10M round that includes NBA star

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