Gaming Startup Raises $20M With Clever AI Pitch Twist

A gaming startup just proved that sometimes the secret to fundraising success isn't changing your business but changing how you talk about it.

Dylan Robbins, CEO of Lucra Sports, faced a brutal reality last fall. One out of every three investor calls ended before he could even pitch. "We're only investing in AI now," VCs told him. "I don't want to waste your time."

Lucra offers something completely different: white-label gaming competitions that businesses use as loyalty programs. Instead of earning points toward coupons, customers compete in online tournaments or make friendly wagers. Clients include Dave & Buster's and Five Iron Golf.

The AI obsession had locked Robbins out of the funding game entirely. So he rewrote his pitch deck with a brilliant twist.

His new opening argument: if AI works and gives people more free time, they'll play more games at bars and online, making Lucra a winner. If AI fails, his non-AI business becomes smart diversification. Either way, investors win.

The strategy worked. Lucra announced a $20 million Series B round last month, led by famed investor Cathie Wood's ARK Invest Venture Fund.

The path to ARK started years earlier in the most unexpected place: a New York darts bar. Robbins met a guy throwing darts and they played a few games together. Six months later, they ran into each other at the same bar.

"We got to talking and I asked him what he did for work," Robbins recalled. The answer: he worked at ARK. That casual friendship eventually led to ARK writing a check in Lucra's Series A round and later leading the Series B.

The win was especially sweet because ARK had previously lost money on Skillz, a similar esports company. Robbins convinced them to bet on the space again.

The Bright Side

Robbins' journey offers hope for founders outside the AI frenzy. Strong fundamentals still matter: Lucra showed consistent year-over-year growth and serves a massive market of anyone who plays games, from pickleball to Wordle.

His advice to other founders is simple: be genuinely nice to everyone because you never know who you're talking to. Let good conversations lead to introductions.

One VC still rejected Lucra for having a TAM that was "too small" despite targeting billions of potential customers. Robbins printed that rejection and posted it on his wall as a reminder to think even bigger.

The lesson landed: sometimes you don't need to build AI to win in an AI-obsessed market; you just need to show how your vision fits into the future everyone's betting on.