The pitch trick that helped an eSports startup raise $20M when VCs only wanted AI

Earlier this year, Dylan Robbins, the founder and CEO of Lucra Sports, accomplished a remarkable feat by securing Cathie Wood and her ARK Invest Venture Fund as the lead investor in a startup fundraising round.

Last month, Lucra announced the successful raise of a $20 million Series B, spearheaded by ARK Fund and joined by several other venture capitalists. Robbins attracted ARK despite the fund's prior experience with a similar eSports enterprise, Skillz. In that instance, ARK had invested heavily only to divest at a loss.

Remarkably, Robbins achieved this milestone even without being in the rapidly sought-after domain of artificial intelligence that most VCs are currently pursuing.

Lucra offers white-label interactive gaming competitions as an innovative loyalty program tailored for businesses aimed at consumers. Instead of conventional rewards such as earning points for discounts, Lucra's clients run online tournaments for prizes or facilitate friendly wagers between customers on game outcomes. Notable clients include Five Iron Golf, Dave & Buster's, and Chess King.

Robbins attributes his success to two key strategies that allowed him to forge a connection with a high-profile investor amidst challenging market conditions:

1. Engage warmly with everyone, everywhere; you can never predict when a casual chat may lead to a significant investment.

2. Initiate your pitch with AI even if you are not a noted AI expert and aren't involved in developing AI models or agents.

The Dartboard Connection

In regard to the first point, the journey towards Lucra's fundraising began unexpectedly in a New York bar, where Robbins met a fellow patron over a game of darts.

"Six months later, we met again at the same bar. I said, 'Good to see you. How's it going?' We chatted, and when I inquired about his profession, he mentioned he worked at ARK," Robbins recounted.

Following this encounter, Robbins shared information about Lucra, leading to an introduction to the investment team at ARK, which later contributed a small investment in his Series A round.

"My primary takeaway is that you never know who you are conversing with. Be approachable, engage with others, and enjoy the process," Robbins advised, emphasizing that these interactions could lead to productive conversations and valuable introductions.

The AI Wall

Fast forward to late 2025, during a period when AI had surged to dominate venture funding discussions.

Lucra Sports had successfully carved out its niche with its white-label service and was poised to raise a Series B to support growth and explore new initiatives, such as integrating mini-games into its platform. (Lucra recently partnered with a mini-game developer to enhance this capability.)

However, Robbins encountered obstacles due to the prevailing focus on AI in funding discussions.

"We were raising funds in Q4 of 2025, a time when the AI craze was at its peak," Robbins noted. "In one out of three calls, the first thing they would say is, 'We are only investing in AI now; I don't want to waste your time.' This often occurred before I could even make my pitch."

Many others communicated their exclusive focus on AI after hearing his presentation.

The AI Hedge Strategy

In response, Robbins implemented a revised approach by pivoting his pitch to address AI from the outset. The new strategy proposed that if AI succeeds, people will enjoy more leisure time to engage in gaming, thereby boosting his business. Conversely, if AI fails, focusing on a non-AI venture becomes a wise diversification strategy. This dual argument served as a hedge covering both possibilities.

"It was a select group that would genuinely consider it," he remarked about his pitch. Fortunately, ARK was among those that did take it seriously. Once ARK committed, they leveraged their influence to introduce Robbins to additional VCs, aiding in the completion of the funding round.

At the core of this strategy were robust business fundamentals, including "consistent year-over-year growth, not just a single spike," Robbins emphasized.

Thinking Bigger

Finally, Robbins recognized that, particularly for a non-AI venture, VCs seek ambitious visions. He championed a lofty goal: a vast total addressable market encompassing all individuals who play games, no matter the type, extending from pickleball to Wordle.

"Our total addressable market includes virtually every American aged 18 to 70," Robbins explained. Even with this broad scope, Robbins faced one rejection from a VC, which he printed and displayed as a reminder.

"I presented them with our growth metrics and our extensive total addressable market potential, demonstrating significant upward growth and substantial opportunities. Their response was simply, 'The total addressable market is too small.' That response made me realize my growth rate was seen as too slow," he reflected.

This experience underscored for him the necessity to "think even bigger."

"I need to embrace a mindset that encourages me to swing for the fences if I want to attract venture capital investment," Robbins concluded.