The Fundraising Approach That Raised $20M for an eSports Startup During the AI Investment Surge

Earlier this year, Dylan Robbins, the founder and CEO of Lucra Sports, achieved a remarkable milestone.

He successfully onboarded the acclaimed public investor Cathie Wood and her ARK Invest Venture Fund as a primary investor in a startup fundraising round.

Last month, Lucra announced it had garnered $20 million in Series B funding, spearheaded by ARK Fund, along with contributions from several other venture capitalists. Robbins attracted ARK despite the fund’s past losses with a similar eSports venture: Skillz, a skill-based gaming platform that the fund had heavily supported before divesting at a loss.

Moreover, Dylan secured this substantial investment even though his company exists outside the current VC-favored domain of AI.

Lucra offers white-label interactive gaming competitions designed as a cutting-edge loyalty program for consumer-oriented businesses. Rather than amassing points for discounts, clients of Lucra can host online tournaments with prizes or enable friendly wagering among customers on game results. Its clientele includes Five Iron Golf, Dave & Buster’s, and Chess King.

Robbins shared two essential strategies that helped him attract high-profile investors despite the odds:

1. Be polite to everyone, everywhere, because a casual conversation could lead to your next major investor.

2. Begin your pitch with AI, even if you’re not a well-known AI expert and aren’t developing AI models or agents.

Regarding his first point, Robbins recalled how the initial stages of Lucra’s fundraising unfolded while he played darts in a New York bar. He struck up a game with a fellow patron.

“Six months later, we ran into each other at the same bar. We greeted each other and chatted, and I asked him about his job. He revealed he was with ARK,” Robbins reminisced.

Robbins introduced Lucra to him, and that contact later connected him with ARK’s investment team, resulting in a modest investment in his Series A round.

“My first piece of advice is that you never know who you’re engaging with. Be approachable, connect with people, and enjoy yourself,” Robbins suggests. Let those encounters lead to fruitful discussions that can pave the way for valuable introductions.

Fast forward to the end of 2025, when AI had become the central focus of venture funding.

Lucra Sports solidified its niche with its white-label services and was prepared to initiate Series B funding to drive growth and explore new concepts, including the integration of mini-games into its offerings. (Lucra collaborated with a partner to develop these mini-games.)

However, Robbins frequently faced obstacles related to AI.

“During our fundraising efforts in Q4 of 2025, a period marked by the peak of AI hype, I frequently encountered investors expressing they were solely interested in AI. Some would even cut the meeting short before I had a chance to present,” Robbins explained.

Others would mention their exclusive focus on AI only after hearing the pitch.

Confronted with this, Robbins restructured his pitch, prioritizing AI from the outset. He contended that as AI advances, people would have more leisure time for gaming, positioning his business as an advantageous player. Conversely, he framed a lack of investment in AI as a strategic misstep.

“Only a select few took it seriously,” he acknowledged. Luckily, ARK was one of them. Once they came on board, the lead investor helped facilitate introductions to other VCs to complete the funding round.

At the core of this accomplishment were robust business fundamentals, including “consistent year-over-year growth, not just a one-time spike,” Robbins stressed.

The final insight Robbins shared was that VCs, especially for non-AI ventures, seek ambitious visions. Robbins had one: a total addressable market that includes anyone who enjoys games, from pickleball to Wordle.

“Our TAM includes almost every American aged 18 to 70,” Robbins remarked. Yet, one VC ultimately sent a rejection note that he printed out for motivation.

“After I presented our growth chart and huge TAM potential, their feedback was: ‘TAM’s too small.’ They believed our growth rate was insufficient,” he recounted.

He regarded this as a reminder “to aim even higher.”

“I need to embrace that mindset and truly take bold steps if I want to attract venture capital,” he concluded.