In the latest column by Tom Waterhouse of Waterhouse VC, the 2023 recap and a look ahead to 2024 are discussed. Despite a general increase in company valuations throughout 2023, there were significant differences when it comes to geographies and sectors. The global rise in interest rates led to a more selective approach from investors, who preferred to invest in profitable businesses.
Two main contributors to the fund’s performance in 2023 were Project Tennis, a betting syndicate focused on tennis, and Saintly, a crypto wagering operator and B2B platform. Looking ahead, Waterhouse VC is on track to earn its entire investment back in distributions by January 2025 from the tennis betting syndicate. Additionally, they are actively exploring other professional betting opportunities, particularly in horse racing, where rebates from totes can provide significant advantages.
In terms of online wagering, India and Brazil are seen as key emerging markets with substantial growth potential for both operators and B2B suppliers. Both countries have seen rapid economic progress, with India having over 370 million bettors, and Brazil recently introducing online wagering following official approval from the country’s president.
Waterhouse VC is particularly optimistic about professional betting, emerging markets such as Brazil and India, and B2B suppliers that offer critical or unique services to gaming and wagering operators. The fund has identified several attractively valued companies in the industry and aims to provide unique access to these larger deals for wholesale investors.
In 2023, Waterhouse VC generated a strong return of +39.5%, outperforming both the S&P 500 (+24.8%) and the ASX 200 (+7.8%). Wholesale investors interested in tracking wagering and gaming industry news and trends are encouraged to follow Waterhouse VC updates on Twitter (@waterhousevc) or through their website at WaterhouseVC.com.