Karma Gaming, a developer of next-generation casual games focused on lotteries from Halifax Nova Scotia, announced a $4 million dollar Series A round of financing led by RHO Canada Ventures and Innovacorp.
The funding will enable Karma to commercialize the contracts acquired earlier this year in four different countries around the world and deliver next-generation digital lottery games. The round was led by Rho Canada Ventures and Innovacorp. Jeff Grammer, partner at Rho Canada Ventures, and Thomas Rankin, investment director at Innovacorp, will join the Board of Directors.
Karma is solving a problem that affects regulated lotteries around the world: Their audiences are aging, and young people are not interested in buying their products. “The thrill of winning money is timeless and borderless, but the current lottery solutions do not meet the needs of digital customers,” said Paul LeBlanc, co-founder and CEO of Karma Gaming. “Lotteries all over the world are looking to revitalize their product offerings and become relevant to a younger generation.” The company plans to use the new funding to increase production output and invest in sales channels to accelerate growth. “This funding will enable us to scale our production output, meet our customer demands and license our games all over the world,” LeBlanc said.
Founded by LeBlanc and Jay Aird, Karma raised an initial seed round of $1.2 million in 2012 from angel investors, including Silicon Valley’s Paul Gauthier. From the seed round, the company secured contracts in four different countries and is launching its first games later this year in the United States.
“As investors and partners, we try to back innovative founders pursuing big ideas,” said Jeff Grammer, partner at Rho Canada Ventures. “Karma has identified a global opportunity and understands the complexities of operating in this space. They have amazing traction already, and we are thrilled to partner with them for their next chapter of growth.”
RHO, a North American venture capital firm with offices in Palo Alto, Calif., New York City and Montreal, injected $2.5 million into Karma. Innovacorp, a provincial Crown corporation, put another $1.5 million into the series A round of financing for the company that aims to develop simple video games to lure young people into playing lotteries.
Location: Halifax, Nova Scotia, Canada
CEO: Paul LeBlanc