Sports app

Spare Change Fantasy Sports App Closes $250,000 Angel Funding Round

A new fantasy sports app wants to allow people to turn their digital spare currency into contest entry fees.

the said Hedge app describes itself as the tassels Where Stash fantasy sports.

The spare currency from digital transactions is added to a pot, which can then be used to enter fantastic contests. Users still define their lineups as traditional daily fantasy sports.

Low cost lottery alternative?

Co-founder of Hedge Jackson Fitzgerald said the app aims to provide “the hopeful, life-changing mechanism of the lottery, without the negative financial downsides”.

“We say our mission is to enable aftermarket parts to change someone’s life,” Fitzgerald said.

The company initially focuses on fantasy contests, run on its own technology. However, he hopes to eventually expand into sports betting and casino games.

The company recently closed a $250,000 angel funding round, bringing its total raised to $350,000.

The company is based in Pennsylvania with Pittsburgh-based investors.

Complementary product

Despite the focus on DFS, Fitzgerald said Hedge’s biggest rivals were Acorns and Stash, rather than FanDuel and DraftKings.

“We see ourselves as part of the alternative currency economy,” Fitzgerald said. “We are complementary to DFS businesses rather than a competitor.”

He pointed out that 70% of Acorns users have some other form of investment or brokerage account.

Popular campaign for Hedge

Hedge currently has six full-time employees and plans to build an initial user base through college campus activations.

“None of these big carriers have a significant college presence, so we’re going to do a grassroots campaign, targeting users who love the fantasy but may not have a lot of money,” Fitzgerald added.

Like alternative financial apps, Hedge users can set risk tolerance levels. A high-risk approach would mean entries into guaranteed prize pool tournaments, while a lower risk tolerance would mean more cash games and double-ups.

The product is currently in “stealth mode” but plans to go into beta in early December, Fitzgerald said.

The product is the latest DFS start-up to attract funding as investors seek a lower cost alternative to sports betting.