A Year of Investment and Betting Insights
As we step into 2024, Tom Waterhouse, the mind behind Waterhouse VC, takes a moment to look back at the financial landscape of 2023 and casts an eye on the future. In a year marked by fluctuating valuations and global interest rate changes, the investment world witnessed its fair share of challenges and opportunities.
Divergence Across Geographies and Sectors
Throughout 2023, there was a notable disparity in company valuations, with some regions and industries outperforming others. As global interest rates rose, investors became discerning, favoring profitable ventures.
Winning Bets in 2023
Two standout contributors propelled Waterhouse VC to an impressive +39.5% performance in 2023. The first was "Project Tennis," a betting syndicate focused on tennis, founded by Tom Dry. Launched in July 2023, it proved to be a lucrative investment. The second star of the show was "Saintly," a crypto wagering operator and B2B platform, which the fund exited in August 2023.
A Bright Future for Professional Betting
The success of Tom Dry's betting syndicate in 2024 is a source of satisfaction for Waterhouse VC. The fund is set to recoup its entire investment by January 2025, just 18 months after the initial investment. The fund's focus on professional betting continues, with plans to explore various opportunities, including horse racing.
The Promise of Horse Racing Betting
Horse racing is an appealing avenue due to the generous rebates offered by totes. Large syndicates benefit from these rebates, thanks to their substantial wagering activities. This gives them a competitive edge, especially considering that US totes often grant rebates to those wagering over $5 million annually.
A Stakes in Racing Syndicates
Waterhouse VC is actively considering investment in syndicates that specialize in racing bets and receive totes rebates. This strategic move could open exciting portfolio opportunities.
The Saintly Success Story
Saintly played a pivotal role in Waterhouse VC's 2023 performance. With a 20% ownership option negotiated in February 2023, Saintly's technology platform was well-positioned to tap into the growing crypto wagering market. Online crypto operators, akin to popular fiat counterparts like FanDuel and DraftKings, have already seen remarkable turnovers.
The Journey to Success
Waterhouse VC's option deal with Saintly, initiated in February 2023, proved to be a substantial success, exiting in August 2023 at an impressive 23 times the initial option conversion valuation.
As we continue into 2024, Tom Waterhouse and Waterhouse VC remain vigilant, seeking fresh opportunities and navigating the ever-changing investment landscape.