At ZEAL Investments (ZI), our mission is to find companies that can redefine lottery – the disruptors, the challengers, the teams that will upset the delicate status quo – and equip them with both the funding and the support that they need.
This mission is off to a very promising start. Though we’ve only been active since November 2016, we’ve already formed a partnership with MassChallenge (the international startup accelerator) and met several exciting companies that could use our backing to make a huge impact.
We’re delighted to announce that the UK’s Free Postcode Lottery (FPL) will be the first such company to receive our backing. We have invested £1,000,000 for a ten percent equity stake in the business, and I’m eager to support them in putting this investment to work. First priorities are to ramp up paid acquisition to support their already impressive organic growth, and to begin to roll-out new products in major international markets.
The Free Postcode Lottery
We have good reason to be confident that FPL can be a genuine lottery disrupter, since it turns traditional lottery on its head.
At ZI, we believe the single biggest block to creating a genuinely massive lottery game to be the highly fragmented global licencing regime. To create a genuinely global game it is vital to not be classified as gambling and therefore fall outside of these constraints. There are a number of ways to achieve this and FPL have found a very elegant approach.
FPL has a cracking proposition – win money, for free, every day. Since its launch in 2011 it has built a highly engaged community of 300,000 daily active users all vying for a piece of the £700 of prizes awarded each day. The site is simple to use and the community is always on hand to answer new players’ questions (FPL hardly need their own customer support!) making for a nice way to spend 10 minutes of your day.
The founder Chris is very active on the site and he carefully curates deals and offers that FPLers can choose to try out, or not, as they see fit. This makes it a great way for brands to be introduced to new potential customers in a low-sell, trusted environment. The money that this generates more than covers the cost of prizes and running costs, making FPL a strongly profitable business already. Even better, and like most of the big internet breakthroughs (think Google/Facebook), the user doesn’t pay to play, and that means that in the UK and many other major markets FPL is not classed as gambling. It is for these reasons that we believe that FPL is the first genuinely global lottery in the making.
Chris’ vision for FPL exactly fits ZI’s strategic outlook and so we are delighted that he chose us as FPL’s first external investor. Whilst he retains full control of the business, we will provide him and his team with access to the full resources of the ZEAL Empire to achieve the dream of building a global lottery, that anyone can play, for free.
I can say that everyone at ZI is thrilled that FPL is our first investment and we look forward to the exciting road ahead.