A Wagering Platform Built For The Modern User
INVEST IN SPARKET: THE SOCIAL BETWORK™ TODAY!
Reasons to Invest
- Our platform appeals to broad audiences with user-friendly design and the ability to customize bets against your community (rather than the house), improving the experience for our users.
- In 2018, the Supreme Court overturned the ban on sports betting, and since then it has become legal in 34 states and people have wagered over $100 billion (Source | Source).
- As our free-to-play partnerships gain traction and generate revenue, we have already set up contracts with major wagering businesses, including a year-long engagement with Cahuilla Casino.
OVERVIEW
A Revolutionary Platform Facilitating Live Event Wagering
We built The Social Betwork™, our proprietary pool-wagering system, as a B2B igaming service for our operating partners. Our vision is to help wagering businesses differentiate their products through our customizable platform to expand their reach in the new golden age of sports betting. We are moving beyond traditional sports to underserved demographics by including betting for esports tournaments, private golf events, and reality TV shows.
The Problem & our Solution
Bringing Legalized Sports Betting To New Users
Even as sports betting expands, existing sportsbook platforms underserve significant demographics. We're seeing users often jump from app to app with limited loyalty. In addition, these platforms are not intuitive for new users at a time when many people will engage with sports betting for the first time.
We are democratizing live event wagering by having users bet against the community rather than the house, which holds more appeal for first-time wagerers. Instead, we generate revenue by taking 1% of all bet volume (handle) coming through our platform, plus software and licensing fees. Our platform is designed with no barriers to entry for new users and customizability to help our operating partners differentiate their products. With our self-setting odds system, the operator simply takes a commission on all bets rather than taking exposure on the action.
Any business that is looking to build a community, grow their audience, and deepen their brand loyalty can do just that by choosing Sparket.
The Market & our traction
A Massive Emerging Market and Strong Partnerships
Since the Supreme Court overturned the federal ban on sports betting in 2018, there has been over $100 billion wagered in legal sports betting (Source). In only a few years, the market has grown from only Nevada to 34 states, with major market opportunities in states like Ohio and California, still yet to come online (Source).
We've already had initial proof of concepts in private beta with thousands of users via free-to-play contests in partnership with casinos, golf clubs, and esports tournaments. Our successful trial event at the Cahuilla Casino led to a year-long contract. We've already achieved our first month of 5-figure revenue (August 2022) even before launching our real money partnerships. We also completed the UCLA Venture Accelerator program at the Anderson School of Management.
why invest
Building the Future of Sports Betting
Our patent-pending technology has been tested and we have contracts in place with operating partners, putting us in the position to potentially go live for real money wagering with our expected GLI 33 Certification. We believe this will allow Sparket to become one of the only certified sportsbook technology of its type. We envision Sparket paving the way forward in the newly legalized multi-billion dollar sports betting market, and we've built our platform with an eye on Web 3.0 and blockchain to take advantage of future growth opportunities. Join us, as we democratize the live event wagering industry!
ABOUT
8 The Green, STE A
$13.21M
Sparket has created The Social Betwork™, an innovative igaming platform helping our operating partners grow their live event wagering volume and reach. We provide a bet-on-anything platform allowing users to place bets within their communities (Betworks), from professional sports to e-sports, reality TV, award shows, golf tournaments, and more. We are currently in-market with our preliminary free-to-play partnerships and approaching Gaming Labs International (GLI) certification 33, which is a major milestone towards regulatory approvals for future real money wagering software. Our technology is patent pending with the USPTO, and is built with an eye on integrating Web 3.0 and blockchain technologies by decentralizing the entire wagering process. This will enable trusted users to provide event metadata and confirm outcomes as we pursue our mission to democratize live event wagering.
TEAM
Aaron Basch
Evan Fisher
Alex Ispa-Cowan
Senior Software Engineer
Matt Brown
Creative Director
Cisco Arias
Technical Advisor
Sally Bernard
Advisory Board, Business Development
Loren Gill
Advisory Board Member
Michelle Gerson
Advisory Board Member
Marcus Yoder
Advisory Board Member
Blue Quisquis
Advisory Board, Native American Relations
Dane Henderson
Advisory Board
Ilia Bulavintsev
TL. Software Engineer
Rael Enteen
Strategic Advisor
Andrew Brandt
Technical Advisor
Robin Richards
Advisory Board
John Wholihan
Advisory Board
Chris Pigozzi
Marketing Team Business Advisor
TERMS
Overview
Breakdown
Maximum Number of Shares Offered subject to adjustment for bonus shares
Company | : | Sofabet Co. |
Corporate Address | : | 8 The Green, STE A, Dover, DE 19901 |
Offering Minimum | : | $10,000.00 |
Offering Maximum | : | $1,250,000.00 |
Minimum Investment Amount(per investor) | : | $250.00 |
Terms
Offering Type | : | Equity |
Security Name | : | Common Stock |
Minimum Number of Shares Offered | : | 8,000 |
Maximum Number of Shares Offered | : | 1,000,000 |
Price per Share | : | $1.25 |
Pre-Money Valuation | : | $13,205,312.50 |
*Maximum number of shares offered subject to adjustment for bonus shares. See Bonus info below.
Investment Incentives and Bonuses*
Time-Based:
Friends and Family Early Birds
Invest within the first 72 hours and receive 15% bonus shares
Super Early Bird Bonus
Invest within the first week and receive 10% bonus shares
Early Bird Bonus
Invest within the first 2 weeks and receive 5% bonus shares
Amount-Based:
$1,000+ | Social Betwork™ Champions
Invest $1000+ and receive branded Sparket: The Social Betwork™ swag and a virtual avatar upgrade (anticipated in 2023).
$5,000+ | Sparket Group Admin
Receive a custom branded group within the Sparket web application where you are the admin: invite your betwork and set up customized wagering pools. Includes admin console analytics.
$10,000+ | Premium Investors Club
Join our existing $10k+ investors with quarterly access to our founding team, input on product direction, and roundtables to shape the direction of the company
$25,000+ | Diamond Investors Club
Access to all of the above perks plus an additional 5% bonus shares
Loyalty Bonus:
Existing platform users will receive 5% bonus shares.
*In order to receive perks from an investment, one must submit a single investment in the same offering that meets the minimum perk requirement. Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement. All perks occur when the offering is completed.
The 10% StartEngine Owners' Bonus
Sparket: The Social Betwork (TM) will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.
This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Common Stock at $1.25 / share, you will receive 10 additional shares of Common Stock, meaning you'll own 110 shares for $125. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.
This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.
Investors will receive the highest single bonus they are eligible for among the bonuses based on the amount invested and time of offering elapsed (if any). Eligible investors will also receive the Owner’s Bonus and the Existing platform users bonus in addition to the aforementioned bonus.
Irregular Use of Proceeds
The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Salary payments made to one’s self, a friend or relative. Vendor payments.
PRESS
Sparket Inks Strategic Partnership with USBookmaking
Nevada-based USBookmaking inked a strategic partnership with Sparket, an innovative sports betting application. Announced on Tuesday this week, the partnership seeks Omni-channel user engagement, including pari-mutuel sportsbook for esports wagering, and more.
Xpoint appointed as Sparket’s geolocation partner
The partnership will allow Sparket to provide its patent-pending Social Betwork software in a regulated, secure digital environment that meets all state and federal regulations, while also ‘turning the geolocation digital utility into an asset that generates value’.
Cahuilla Casino Hotel early adopter of the Social Betwork™ for the Big Game
The innovative Cahuilla Casino and Hotel has partnered with Sparket's Social Betwork™software to offer free to play wagering pools for the Big Game. Users can participate online leading up to the event and in person on gameday. Sparket offers select partners its software via multiple channels.
ALL UPDATES
12.07.22
Democratizing Live Event Wagering via The Social Betwork™
A big part of Sparket's mission is to help make live event wagering more accessible to demographics who haven't traditionally participated as strongly in the industry. For example, females make up 47% of all sports fans but only 31% of sports betting customers (source); and Gen Z identifies more strongly with esports than earlier generations (source). With our bet on anything platform we're able to customize social betting pools for any community. In addition to traditional sports, we've done everything from partnering with influencers on Bachelorette pools, to esports tournaments and private golf club events. We're always humbled when our name comes up across the industry, and just this week Sparket was referenced on a Kinectify compliance podcast with Lauren Lemmer (Director of Compliance, Fanatics) speaking about the value of attracting broader demographics. If you're interested in learning more, give it a listen at around the 39:00 mark.
12.05.22
Sparket Achieves Key Milestones in October and November
Since launching on StartEngine, Sparket has achieved key milestone across product, partnership, and investment. Please see below for a recap of the last two months:
- Partnership agreement signed with Station Casinos (NASDAQ: RRR) to integrate into their 1m user platform (press)
- GLI 33 Sportsbook certification (press) (case study)
- 2022 G2E Innovation Challenge Winner (previous finalist at SBC Americas, Sigma Americas)
- Reached over $100k raised on StartEngine with support from 46 investors
- Launched key product updates covering enhanced social features, login flow, and automated notifications
- Achieved our second month of 5 figure revenue, with additional partnerships in the pipeline (stay tuned!)
Thank you for your ongoing support -- feel free to reach out in the comments section with any questions.
11.28.22
Sparket's campaign reaches $100k raised!
As we pass the key $100k milestone we want to give a huge thank you to our growing investor community! We're thrilled with our progress on StartEngine and look forward to gaining even more momentum as we head into December. If you haven't invested yet, now's your chance to grab a piece of the Social Betwork™. If you're already in, consider sharing this opportunity with your network.
Go Sparket!
11.23.22
Sparket Featured in GLI Case Study
More exciting news as Sparket was recently featured by Gaming Labs International (GLI) as a case study for event wagering systems! The article outlines how Sparket was able to achieve this major technical milestone and subsequently land a major partnership with Station Casinos. You can check out the article here:
11.18.22
Featured on The Betting Startups Podcast
Recently, our CEO Aaron Basch and COO Evan Fisher were featured on The Betting Startups Podcast! They discussed the recent win at G2E's Innovation Challenge, a history of the company, the GLI certification process, goals for the future, and more. Give the podcast a listen at the link below:
https://www.bettingstartups.com/ep-47-aaron-basch-evan-fisher-sparket/
11.04.22
October Product Release Updates
Following our successful GLI Certification in September and major partnership announcement with Station Casinos, the Sparket engineering team has been able to shift focus from the regulatory and compliance features required for GLI to significant user experience upgrades. We're excited to share our latest release notes below. You can test them out live for yourself at www.sparket.app. Please feel free to leave any feedback or suggestions in the comments.
Optimized Login Flow
Redesigned to streamline process via code entry instead of link
Minimized profile information required and hard redirect in favor of simple username entry
Auto popup of Join group modal upon sign in and attempting to place a bet
Min age customization by group to support different client requirements (i.e. 18+ vs 21+)
Automated Notifications
Users can now receive automated email notifications for a variety of purposes, including login, profile updates, password changes, and winning/losing bets
Users can change notification settings within their profile page
Update Social Sharing
Built link shortening service for in-app social sharing buttons
Links contain referral information to identity referring user, group, and medium
-
Refer a friend feature stores who referred you in our database if you click on a friend’s social sharing link.
Can be upgraded to trigger referral bonuses automatically with a little more dev work in the future.
Updated page for embedded browsers which redirects users to a secure browser via ‘copy link’ functionality
Misc
Updated Users page of admin console to display additional information including email address, external_id, available balance, and pending bets balance
Add/Remove funds accepts decimal values
Improved Pagination on Admin Console
10.24.22
Watch our CEO Pitch LIVE Tonight at Google
Tonight, our CEO Aaron Basch will be pitching among 10 companies selected as finalists of the UCLA Anderson Venture Accelerator Showcase. The event will be hosted at the iconic Spruce Goose Google office in Playa Vista, CA in front of a community over 100 people. Tune into the LiveStream tonight from 5:00pm - 6:30pm PT to watch. He will be be the 10th and final company to pitch during the event.
10.21.22
Insider Investment Notice
We’re pleased to see our community come in and invest in Sparket: The Social Betwork™. Thus far our Insiders have invested a total of $750 into the offering. We hope you join as well!
Please refer to the Company’s offering materials for further information and refer to the Company’s Risk Factors.
10.17.22
Sparket Wins Big at the G2E Innovation Challenge!
Sparket is the winner of the Global Gaming Expo Innovation Challenge! The G2E Innovation Challenge is a start-up competition in Las Vegas that connects innovators, funders, and other gaming industry stakeholders. This was a chance for early-stage companies to engage the global gaming industry at G2E with live pitches in front of a distinguished panel of judges who include investment, VCs, and industry influencers. Sparket made the final 5 companies selected to pitch at the event, and won the most votes from the audience. This victory at one of the largest igaming conferences in the country comes with a $12k prize pool and helps Sparket continue to capitalize on their recent momentum.
10.11.22
Sparket is live at G2E!
Sparket is in full force this week at the Global Gaming Expo in Las Vegas, one of the preeminent iGaming conferences in the world. With our fresh news of GLI Certification and our major partnership with Station Casinos, we'll be meeting with many of the biggest names in the industry to demonstrate how our technology can add a new layer to their sportsbook or iCasino. Our CEO will also be pitching as a finalist at the Innovation Challenge, having been selected from numerous applicants.
Let's go Sparket! 
Stack Owner's Bonus & Rewards!
Members get an extra 10% shares in addition to rewards below!
REWARDS
$250.00
StartEngine Owner’s Bonus
This offering is eligible for the StartEngine Owner’s 10% Bonus program. For details on this program, please see the Offering Summary section below.
$1,000.00
Social Betwork™ Champions
Invest $1000+ and receive branded Sparket: The Social Betwork™ swag and a virtual avatar upgrade (anticipated in 2023).
$5,000.00
Sparket Group Admin
Receive a custom branded group within the Sparket web application where you are the admin: invite your betwork and set up customized wagering pools. Includes admin console analytics.
$10,000.00
Premium Investors Club
Join our existing $10k+ investors with quarterly access to our founding team, input on product direction, and roundtables to shape the direction of the company.
$25,000.00
Diamond Investors Club
Access to all of the above perks plus an additional 5% bonus shares.
JOIN THE DISCUSSION
0/2500
HOW INVESTING WORKS
Cancel anytime before 48 hours before a rolling close or the offering end date.
WHY STARTENGINE?
How much can I invest?
With Regulation A+, a non-accredited investor can only invest a maximum of 10% of their annual income or 10% of their net worth per year, whichever is greater. There are no restrictions for accredited investors.
With Regulation Crowdfunding, non-accredited investors with an annual income or net worth less than $124,000, are limited to invest a maximum of 5% of the greater of those two amounts. For those with an annual income and net worth greater than $124,000, he/she is limited to investing 10% of the greater of the two amounts.
When will I receive my shares?
At the close of an offering, all investors whose funds have “cleared” by this time will be included in the disbursement. At this time, each investor will receive an email from StartEngine with their Countersigned Subscription Agreement, which will serve as their proof of purchase moving forward.
Please keep in mind that a company can conduct a series of “closes” or withdrawals of funds throughout the duration of the campaign. If you are included in that withdrawal period, you will be emailed your countersigned subscription agreement and proof of purchase immediately following that withdrawal.
What will the return on my investment be?
StartEngine assists companies in raising capital, and once the offering is closed, we are no longer involved with whether the company chooses to list shares on a secondary market, or what occurs thereafter. Therefore, StartEngine has no control or insight into your investment after the close of the live offering. In addition, we are not permitted to provide financial advice. You may want to contact a financial professional to discuss possible investment outcomes.
Can I cancel my investment?
For Regulation Crowdfunding, investors are able to cancel their investment at any point throughout the campaign up until 48 hours before the closing of the offering. Note: If the company does a rolling close, they will post an update to their current investors, giving them the opportunity to cancel during this timeframe. If you do not cancel within this 5-day timeframe, your funds will be invested in the company, and you will no longer be able to cancel the investment. If your funds show as ‘Invested’ on your account dashboard, your investment can no longer be canceled.
For Regulation A+, StartEngine allows for a four-hour cancelation period. Once the four-hour window has passed, it is up to each company to set their own cancelation policy. You may find the company’s cancelation policy in the company’s offering circular.
Once your investment is canceled, there is a 10-day clearing period (from the date your investment was submitted). After your funds have cleared the bank, you will receive your refund within 10 business days.
Refunds that are made through ACH payments can take up to 10 business days to clear. Unfortunately, we are at the mercy of the bank, but we will do everything we can to get you your refund as soon as possible. However, every investment needs to go through the clearing process in order to get sent back to the account associated with the investment.
What is the difference between Regulation Crowdfunding and Regulation A+?
Both Title III (Regulation Crowdfunding) and Title IV (Reg A+) help entrepreneurs crowdfund capital investments from unaccredited and accredited investors. The differences between these regulations are related to the investor limitations, the differing amounts of money companies are permitted to raise, and differing disclosure and filing requirements. To learn more about Regulation Crowdfunding, click here, and for Regulation A+, click here.
