In a significant development for the leisure industry, the visionary founders of Topgolf and Puttshack have successfully raised $34 million in seed capital to launch a new venture aimed at revolutionizing the game of pool. The funding comes from a diverse group of investors, including billionaire David Blitzer, a prominent executive with Blackstone, and the investment arm of the Daily Mail. This capital injection is intended to fuel the growth of Poolhouse, a concept that aims to bring a tech-savvy twist to the traditional table-top game of pool.

The initial funding round has secured backing from several notable firms, including the New York-based venture capital fund Sharp Alpha and Simon Sports, which co-owns the English football club Ipswich Town. The investor group also features early supporters of Soho House, a private members club, and the F1 Arcade, which offers a Formula 1-themed entertainment experience.

Poolhouse is the brainchild of British twins Steve and Dave Jolliffe, famous for creating Topgolfa popular international chain of "gamified" driving ranges that was acquired by golf equipment giant Callaway for a staggering $2.1 billion. The duo also co-founded Puttshack, a modern twist on mini-golf, collaborating with Adam Breeden, who has a background in creating entertainment venues like F1 Arcade, the Flight Club darts chain, and All Star Lanes bowling alleys.

At its core, Poolhouse will utilize traditional pool tables, balls, and cues, but it will integrate advanced tracking technology and video projections to enhance the gaming experience. These innovations will introduce additional features, including bonus targets and various obstacles, thereby modernizing the way pool is played. The team's diverse expertise also includes Paul Hawkins, founder of the renowned sports technology company Hawk-Eye, known for its video replay systems used in sports.

Andrew OBrien, the CEO of Poolhouse, expressed confidence in their concept, stating, Its going to be very difficult to replicate what theyve built. Theyve taken a Nokia 3210 and created an iPhone for every pool table on the planet. This analogy underscores the transformative approach they aim to bring to the game.

The inaugural venue, featuring 20 state-of-the-art tables, is set to launch early next year, conveniently located opposite Londons Liverpool Street station, the UK's busiest rail terminal. The founders promise a vibrant vintage Las Vegas atmosphere, complete with food and drink options to enhance the social experience.

Poolhouse is entering a rapidly growing market for competitive-socializing venues, where rivals are already offering tech-enhanced experiences in cricket, bowling, darts, and even virtual clay-pigeon shooting. Some industry experts have dubbed London the Silicon Valley of this sector, as many innovative concepts are tested in the city before expanding globally.

OBrien, who previously worked as an investment banker at Credit Suisse, remarked on the appeal of competitive-socializing venues compared to traditional food and beverage establishments. He noted, Youre adding a revenue stream which is near 100 percent gross margin, highlighting the lucrative potential of this business model.

According to a report by real estate agency Savills, the competitive-socializing market in the UK has experienced a remarkable growth rate of 40 percent since 2018. The agency has referred to it as the biggest development the leisure sector has seen in decades, predicting that about 800 such venues will emerge across the UK by 2029. This growth is largely attributed to changing consumer behaviors, particularly the trend of reduced alcohol consumption among younger demographics.

Following its launch in London, Poolhouse plans to set its sights on the United States for future expansion. Additionally, the company has already established a franchise partnership in Australia with Signature Hospitality Group, a model they intend to replicate in other markets.

Moreover, Poolhouse aims to sell its technology to pubs, bars, casinos, and hotels, enabling these establishments to recreate the Poolhouse experience using their existing pool tables. Lloyd Danzig, managing partner at Sharp Alpha, expressed enthusiasm for the investment, citing the high margins associated with Poolhouse's "white-label technology," which can modernize traditional pool tables into dynamic digital-entertainment hubs.