Entrepreneur Dean Shannon hopes to raise $60m with cryptocurrency launch

HE’S the serial internet entrepreneur who has already made mega-millions from online porn and bookmaking. Now this businessman is breaking fresh ground by raising up to $60 million with his own version of Bitcoin, a cryptocurrency dubbed “nedscoin’’.

Illustration of Dean Shannon by Brett Lethbridge.

HE’S the serial internet entrepreneur who has already made mega-millions from online porn and bookmaking.

Now Pommy bizoid Dean Shannon is breaking fresh ground by raising up to $60 million for his new online betting group, Brisbane-based Neds International.

But rather than go the old-fashioned IPO route, Shannon is deploying his own version of Bitcoin, a cryptocurrency dubbed “nedscoin’’.

He’s aiming to sell 1.5 billion of the little tokens, which plenty of punters still don’t understand, to fund a global expansion of the business.

Shannon and Altor Capital chief Scott Cross head to Sydney and Melbourne next week on a road show to spruik the capital raising to institutional and sophisticated investors.

Stops in Singapore and Hong Kong are on the agenda for next month.

Shannon was on a plane bound for Canada yesterday but Cross told us that demand was already stronger than he had anticipated.

Cross said that, unlike other ICOs (initial coin offerings), investors will have exposure to a real company generating significant turnover instead of a cash-burning start-up.

While they won’t earn dividends, investors will share in 0.25 per cent of Neds global sportsbook turnover every quarter.

Neds also plans to destroy half of all the coins it earns via bets each quarter in an effort to maintain or increase the value of the remaining currency.

GLOBAL AMBITIONS

POWERED by a $10 million advertising campaign, Neds launched in October to take advantage of the spring racing carnival.

Since then it has generated $233 million in turnover and attracted a database of more than 75,000 customers, who can already use Bitcoin to place wagers. Forecasts tip revenue to grow to more than $3.1 billion by the end of 2019 and $8 billion by 2022.

Neds aims to set up shop in the UK, much of Europe, Africa and South America starting next year.

The US remains elusive until the Supreme Court rules on a case that could see sports betting legalised.

Shannon, of course, already has an impressive track record on the “interweb”.

A former top gun and big shareholder at AdultShop.com, Shannon sold his Bookmaker.com.au business to rival London-based betting outfit Ladbrokes for $22 million in 2013.

He then stayed on as Ladbrokes boss in Australia until February last year.

Shannon also pocketed about $25 million selling his search engine Dark Blue Sea and last year offloaded a lavish Hope Island mansion for $11 million.

BATTLING CHEFS

THEY’VE dubbed it “cooking for a cause’’.

Eight Brisbane CEOs will spend today slaving over hot ovens and stoves in an inaugural fundraising competition to benefit Cystic Fibrosis Queensland.

Going head-to-head at the TAFE South Bank campus are Coffee Club co-founder John Lazarou, Recon Solutions boss Steve Scanlan, Minter Ellison senior player Cassandra Heilbronn and HLB Mann Judd chief James Henderson.

KDPR identity Kristin Devitt, New Breed Co head Sean Ryan, TAFE top gun Paul Wilson and VETEA supremo Ahmed Sokarno will also be whipping up some tasty creations. Two of the city’s top chefs, Moda’s Javer Codina and the Emporium’s Josue Lopez, are set to judge the results.

Organisers hope to raise about $20,000 to help outreach and research efforts for the incurable chronic disease, which cuts life expectancy to just 38.

So far, the team has attracted about $12,500 in pledges but raffles and other money spinners should take them over the top at the after-party. More than 100 are expected at this evening’s soiree, which has been referred to as a “party with a purpose’’.