BREAKING: Lotto App Receives $250K in Funding

The Lotto application, created by Dank Apps has received $250,000 in funding from Bay Partners. I previously covered AceBucks receiving an additional $200,000 in funding from the Bay Partners AppFactory fund. So what is the Lotto application? It’s pretty simple. Every day users can get a ticket to be entered into a lotter drawing. At the end of the day, cash is awarded to the participant who’s ticket is drawn. Where does this cash come from? Advertising.

Apparently enough people are clicking on ads that they can afford to give out $400 a week. This new Lotto application is going to eventually have some components that are directly integrated into the AceBucks application. As Michael Lazerow, CEO of Buddy Media previously suggested, their arrangement with Bay Partners was set up so that they could integrate AceBucks into each of the applications that received funding. It appears that this is one of those applications.

I am interested to see the response from others in regards to this announcement. So far, the majority of applications that are receiving funding are not necessarily the golden applications that I have frequently discussed. Instead, applications that attempt to distribute gold by turning their applications into marketing channels are the ones that are receiving funding. This contrasts to typical Web 2.0 sites in which the product is king. In the world of Facebook applications, creating channels for marketing before developing robust products is what’s important (at least that’s what it appears).

I have spoken with other venture capitalists that have disclosed to me investments they have made in other applications, a few of which have been more utility focused. For the most part though, investments in Facebook applications is still rare. There are nowhere near as many Facebook startups receiving funding as there are general web startups. It will be interesting to see if this trend continues. If you want to play the daily lotto on Facebook, go check out The Lotto application.

If you want to learn more about getting funding, go check out the Bay Partners AppFactory website Also, go check out the DankApps website to learn more about the company that build the Lotto.

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