eSports startup raises $20 million by pitching AI to win over ARK Invest

At a glance:

• Lucra Sports closed a $20 million Series B round led by ARK Invest’s venture fund.
• Founder Dylan Robbins secured the lead by front‑loading AI in the pitch, even though the product is not AI‑centric.
• The round also includes several other venture firms and follows a previous ARK loss on Skillz.

What happened

Earlier this year Lucra Sports announced a $20 million Series B financing round, with ARK Invest’s venture fund as the lead investor. The round also featured participation from a handful of other venture capital firms, though their names were not disclosed in the source. Lucra’s ability to attract Cathie Wood’s fund is notable because ARK had previously taken a sizable loss on a similar eSports platform, Skillz, and had since become wary of the sector.

Founder and CEO Dylan Robbins explained that the breakthrough came from an unconventional pitch strategy. Rather than focusing on the company’s core white‑label gaming‑competition platform, Robbins opened his deck with a discussion of artificial intelligence—arguing that AI would free up leisure time for people to play games, thereby expanding Lucra’s addressable market. This “AI‑first” framing resonated with ARK, which is heavily AI‑focused, and helped turn a skeptical investor into the lead backer.

How the AI angle worked

Robbins said the shift in narrative was deliberate: “One out of every three calls, the first line, they would stop the meeting and say, ‘We’re only investing in AI now.’ So I adjusted the pitch to discuss AI right out of the gate.” By positioning Lucra as a hedge—benefiting whether AI succeeds or not—Robbins created a story that aligned with ARK’s investment thesis while still reflecting Lucra’s true business model.

The revised pitch also highlighted a massive total addressable market (TAM). Robbins estimated that Lucra’s TAM includes “almost every American that’s 18 to 70,” covering everything from pickleball to Wordle. He presented growth charts that showed consistent year‑over‑year expansion, a point he stressed as a key differentiator from companies that experience only a single growth spurt.

Who is Lucra and who uses it

Lucra Sports provides white‑label interactive gaming competitions that act as loyalty programs for consumer‑facing businesses. Instead of traditional points‑for‑coupons schemes, Lucra’s clients host online tournaments or friendly wagers, offering real prizes to participants. Current customers include:

• Five Iron Golf
• Dave & Buster’s
• Chess King

The company recently invested in a mini‑game development partner to expand its offering with new, bite‑size gaming experiences. This move is part of the growth capital raised in the Series B round.

Lessons for founders

Robbins distilled his experience into two core principles:

1. Be friendly to everyone, anywhere. A chance meeting at a New York darts bar led to an introduction to an ARK employee, which later resulted in a small check during Lucra’s Series A round.
2. Lead with AI even if you’re not an AI company. By framing the business within the AI narrative, Robbins was able to bypass the “AI‑only” filter many VCs have erected in 2025.

He also warned that VCs often demand ever‑larger TAMs. One investor rejected Lucra’s pitch despite a “billions‑of‑dollar” TAM, calling it “too small.” Robbins took the rebuke as a reminder to think even bigger and to “swing for the fences” when courting capital.

Outlook

With ARK’s backing and additional venture support, Lucra Sports plans to scale its white‑label platform, roll out new mini‑games, and deepen partnerships with existing customers. The company’s story illustrates how non‑AI startups can still thrive in an AI‑obsessed funding environment by smartly aligning their narrative with investor priorities. As AI continues to dominate venture headlines, more founders may adopt similar “AI‑first” framing tactics to secure financing.