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ARK Fund Bets Big on Lucra's Loyalty Gaming
22 Apr
Summary
- ARK Invest Venture Fund led Lucra's $20 million Series B.
- Lucra transforms loyalty programs into interactive gaming events.
- ARK overcame past investment issues with Skillz for this deal.
ARK Invest Venture Fund has initiated its first lead investment, spearheading Lucra's $20 million Series B funding round. This strategic move highlights ARK's confidence in Lucra's innovative business model, which re-imagines corporate loyalty programs.
Lucra's platform transforms traditional loyalty schemes into interactive, eSports-style events such as tournaments. Customers can engage in competitive gameplay, with opportunities to win cash or company-provided giveaways. Prominent clients utilizing Lucra's service include Five Iron Golf, Chess Kings, and Dave & Busters.
This investment signifies a notable shift for ARK, especially given its past experience with a similar company, Skillz, which did not perform well for investors. ARK's director of research, Nick Grous, noted that Lucra's B2B focus, providing loyalty solutions rather than direct consumer gaming, was a critical factor in overcoming previous hesitations.
ARK had previously participated in Lucra's Series A round, allowing them to gain familiarity with the company's operations, growth trajectory, and its founder, Dylan Robbins. Through consistent communication and rigorous vetting by Grous and ARK's investment committee, Lucra demonstrated a strong understanding of past market challenges and presented a compelling case for future success, bolstered by promising financials and a sector ARK deeply understands.
