Ann Arbor-based Scorbit Raises $5 Million for connected gaming

Scorbit, a connected gaming platform based in Ann Arbor, Michigan, recently announced it secured just over $5 million in seed funding in a round led by Detroit Venture Partners. Participants also included a diverse group of local Midwest startup investors, including Grand Ventures, Weiser Family Office, Michigan Rise/Red Cedar, Invest Detroit Ventures, and notable angels such as Matthew Prince of Cloudflare and Matt Mullenweg of Automattic. The company said it plans to use these funds to expand its team locally, finalize its minimum viable product, further develop its hardware offerings, particularly the Scorbit Console, a B2B platform for venues, and enhance its app's features to support payments, competitions, and global gameplay.

Founded by internet pioneer Jay Adelson and media and technology veteran Ron Richards, Scorbit aims to position itself as a platform connecting physical arcade gaming with digital community engagement. The company reported that its beta had already demonstrated strong market validation, with inbound interest from venues surging by over 500 percent since launch, indicating a growing demand among bars and arcades eager to invigorate their customer experiences through connected gameplay. Since launching the app, Scorbit said it has observed double-digit increases in new users and gameplay activity, providing early evidence of product-market fit.

The arcade and entertainment industry in the United States is projected to reach approximately $6.1 billion in 2025. Globally, the arcade games market was valued at over $24 billion in 2023, with an expected annual growth rate of 5.6 percent through 2030. For bars facing challenges with traditional drink-only models, integrating gaming can boost spending and patron retention. Studies suggest that arcade games generate weekly revenues of 200 to 485 dollars per game, with visitors typically spending 10 to 20 dollars per visit and achieving profit margins of 15 to 20 percent. In 2024, Forbes reported that arcade bars often derive 50-60 percent of their revenue from drinks, with gaming accounting for 20-25 percent, illustrating how social gaming can transform the bar business model.

Joe Malcoun, an Ann Arbor entrepreneur and investor, expressed his support for Scorbit’s regional ties, stating, “One of the things I am particularly excited about is how Scorbit demonstrates what happens when legendary founders like Jay return home and engage with the local startup community. This is such a great story about leveraging coastal experience to build something awesome in Michigan.” 

Backed by their early traction, Scorbit said it expects to launch a Series A funding round in 2026 to sustain growth, forge new partnerships, and scale across the nation. The company said it aims to build on its momentum and continue developing tools that blend nostalgia-driven arcade gameplay with modern digital competition.