Schenectady startup receives almost $2M in local funding

PHOTOGRAPHER: Marc Schultz

Lottery Rewards, a startup located in the New York BizLab and participant in StartUp NY, has closed on a seed investment round, receiving $1.9 million to fund platform development and a go-to market strategy. Lead investors include Velan Ventures, form...

A startup based in the New York BizLab on State Street has received almost $2 million in funding from local investors.

Lottery Rewards, which moved into a space at the BizLab last October, is the beneficiary of the business accelerator’s largest investment to date. The $1.9 million in funding is also the first investment for Velan Ventures, an investment group formed by the founders of video game company Vicarious Visions and the co-founder of software developer MapInfo.

Jeff Perlee, former head of the New York State Lottery, founded Lottery Rewards. The company enables lottery players to scan or enter any non-winning state lottery ticket for a free “second chance” to win cash and prizes. The business offers different lottery-style games to users as well through its mobile and web platform.

The investment will allow the company to expand its user base and broaden entertainment offerings, Perlee said. The leaders of Velan Ventures are Guha and Karthik Bala, founders of Vicarious Visions, and Mike Marvin, co-founder of MapInfo.

Perlee said the Balas and Marvin provide financial assistance, but also experience in growing a business from a start-up level to something larger.

Guha Bala said there’s not a ton of venture capital floating around the Capital Region, making investments like this one particularly important for companies that are looking to grow.

“The incubator plays an important role in the Capital Region,” Perlee said on Wednesday, adding that having a space in the BizLab can be appealing to potential investors and give a start-up company more credibility as it tries to secure funding.

The BizLab is a business incubator located at 251 State Street in Schenectady. It houses six tech companies, with its newest tenant, [s]Cube, moving into newly constructed space next month. The BizLab was founded by Antonio Civitella, CEO of Transfinder, a logistics software company.

The space is a Start-Up NY site, which means the businesses housed there qualify for tax breaks.

“For a New York BizLab-based startup like Lottery Rewards to land back from the likes of Mike Marvin and Guha and Karthik Bala is a testament that this region has great ideas that can be cultivated into significant business,” Civitella said.

Reach Gazette reporter Brett Samuels at 395-3113, [email protected] or @Brett_Samuels27 on Twitter.