Starbet Gaming Entertainment AG

Sports betting company

The investment in Starbet falls under the high-risk segment of early phase financing. Starbet was founded in 2005 in the run-up to the forthcoming liberalization of the German gambling market. Starbet established its own offline sports betting shops and targeted together with RTL the lead position amongst German online sports betting companies. RTL has subscribed and paid for 30% of the shares in the company. Starbet prepared an IPO. Almost EUR 20 million of private capital was mobilized through an Austrian bank.

Global Equity Partners decided to invest in 2005 due to the promising corporate strategy. In 2007 the regulatory framework changed in Germany. The majority of the originally more than 100 sports betting shops were closed. The online business was not realized. In January 2008 Starbet entered into a cooperation with a strategic partner and is currently evaluating new areas of activity.

Starbet is an example that a business model, even with a professional corporate concept and good management, may not be realized according to expectations due to external circumstances (regulatory framework, changes in technology, energetic actions of competitors).