EXCLUSIVE: Discerning Capital launches multi-million dollar user acquisition initiative

The news: Discerning Capital, the gambling-focused investment firm co-founded by Davis Catlin and David Williams, is launching a new initiative to offer up to $100M in non-dilutive loans to fast-growing B2C operators in the space, the company shared with BettingStartups exclusively. 

Zoom in: While Discerning Capital is best known for equity investments in companies such as Picklebet, Midnite, and Slotcycle, the firm’s new initiative—focused specifically on user acquisition financing—aims to give startups access to growth capital without giving up equity. 

This allows companies to borrow against its future revenue, paying interest in place of selling equity. “You get to retain more of your upside,” Catlin said. “Instead of giving us a share of your business… you pay us interest.”

Startups can apply for revolving lines of credit tied to monthly ad spend, and Discerning says they’ll cover anywhere from 50-80% of that amount. Repayment is dynamic: as the acquired users generate returns, the loan balance decreases. Borrowers pay interest based on repayment timing, creating a structure that rewards capital efficiency.

Discerning is partnering with Singapore-based PVX Partners to handle loan underwriting and analytics. Together, the two evaluate cohort quality, user retention, and assess risk based on jurisdictional reach and product maturity. “We're underwriting the math, then creating qualitative overlay around regulations and business strategy.” In some cases, Catlin says the firm may offer a hybrid deal structure—some equity, some credit.

Zoom out: The initiative is a response to what the firm sees in the market. “Some companies need to raise more money than makes sense,” Catlin said. “Say your business is worth $10 million today and you need to raise $10 million to reach scale… you're going to have to give up half of your business to do that.”

The new initiative won’t replace Discerning’s equity investing, either—it’ll complement it. “We're going to continue to be in the equity business, that's our core,” Catlin said. But, he acknowledged that “sometimes the right way to invest in a business is actually on the credit side.” 

What’s next: The firm has already committed to a $20M loan, with a broader target to have $50-$100M in active loan capacity over time. Catlin says founders can reach out directly via LinkedIn or email to learn more about the new initiative.

Why it matters: Not every company raising capital wants to part with equity to do it. Discerning’s new initiative introduces a model purpose-built for operators with strong user economics who need to scale marketing spend without reshaping their cap table. It’s also a signal that the ecosystem is maturing: tailored financial products are arriving to meet sector-specific challenges. Catlin adds that it’s also “really important that the founders now have a new avenue of non-dilutive financing.”

We sat down with Davis Catlin to talk about the new initiative and more on The BettingStartups Podcast. Listen to the full podcast on YouTube, Spotify, and Apple Podcasts.