Scorbit, a connected gaming platform merging physical arcade play with online community and competition, has closed a seed round totaling more than $5 million after achieving rapid traction in its beta phase. The round was led by Detroit Venture Partners, with participation from Grand Ventures, Weiser Family Office, Michigan Rise / Red Cedar, Invest Detroit Ventures, Eberg Capital, Ann Arbor SPARK Capital, Mudita Venture Fund II LLC, Precursor Ventures, Side Door Ventures, Wakestream, Gambit Ventures, and a broad mix of individual and angel investors.
The raise drew notable follow-on participation from several pre-seed backers, including Matthew Prince of Cloudflare, Matt Mullenweg of Automattic, Marissa Mayer of Sunshine and formerly Google and Yahoo, Mike McCarthy of the Dallas Cowboys and Green Bay Packers, Bevan Slattery of Megaport, Superloop, and NEXTDC, Rob Hayes of First Round Capital, Robert Abbott of HashiCorp, and Jordan Lowe of ServerCentral, among others.
Co-founded by internet pioneer Jay Adelson, known for building Equinix and Digg, and longtime media and technology leader Ron Richards, previously an executive at Marvel and Disney, Scorbit is positioning itself as the platform that brings arcade gaming into the connected era. The company aims to give bars, arcades, and entertainment venues new ways to attract visitors, foster community, and increase revenue through modernized gameplay and real-time digital engagement.
With the seed investment, Scorbit plans to expand its Ann Arbor team, finalize its MVP, advance hardware R&D, accelerate development of the Scorbit Console for venues, and add new features to its app, including payments, competitions, and global gameplay functionality. Detroit Venture Partners’ Jared Stasik will join the company’s board of directors, while Grand Ventures’ Nathan Owen will serve as board observer.
Signs of strong market demand are already emerging. Since the company’s beta launch, inbound interest from venues has grown more than fivefold. The debut of the consumer app has also sparked double-digit increases in new users and gameplay sessions across the platform, indicating promising product-market fit and momentum among both operators and players.
Scorbit’s timing aligns with a broader resurgence in in-person entertainment and social gaming. For bars seeking to diversify revenue beyond traditional drink sales, gaming can be a powerful differentiator. The revenue per arcade machine can range from $200 to $485 per week, while the average consumer spend per visit ranges from $10 to $20. According to Forbes, arcade bars typically see a revenue blend of 50 to 60 percent from drinks, 20 to 25 percent from gaming, and 20 to 25 percent from food or events.
Scorbit’s leadership and investors believe the platform is well-positioned to ride this wave, fueled by nostalgia, community, and the demand for more interactive, shared experiences. The company also embodies the growing strength of the Midwest’s startup ecosystem, leveraging Ann Arbor’s expanding tech community and Detroit’s legacy of invention. With strong early traction and significant investor confidence, Scorbit plans to launch its Series A fundraising process in 2026 to scale nationally, add new venue partnerships, and expand its product capabilities.
KEY QUOTES:
“This investment underscores what we’ve believed all along: Michigan is still one of the most inventive places on earth. Scorbit is transforming nostalgia into a modern, connected experience and putting the Midwest at the center of the next chapter in social gaming.”
Jared Stasik, Detroit Venture Partners
“Scorbit’s platform is proving the massive opportunity in reimagining physical play for the digital era. It’s not just about connecting machines, it’s about connecting people.”
Nathan Owen, Grand Ventures
“We’re seeing incredible excitement from operators and players. Bars, arcades, and entertainment venues are looking for ways to bring people back together. Scorbit is giving them a platform to do that while unlocking new revenue and social experiences.”
Jay Adelson, Co-Founder, Scorbit
“I’ve always loved pinball. I play a game on my Scorbit-powered machine before every earnings call. When Jay told me what he was working on it was a no-brainer I wanted to be involved. Not just because Jay invented the business of network effects, but also because no matter what this was going to be fun.”
Matthew Prince, Cloudflare
“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.”
Joe Malcoun, Ann Arbor Entrepreneur and Investor
