Capital, Consolidation, and What’s Next: XST Capital’s View from the Deal Table

Joel Simkins has been doing exactly that for nearly three decades first as a top equity research analyst covering gaming, then as an investment banker, and now as the founder of XST Capital Group, a digital gaming-focused investment banking boutique firm built specifically for emerging companies.

From kitchen-table startup in May 2024 to nearly a dozen professionals today, XST has scaled quickly. That’s not accidental.

According to Joel, the firm found product-market fit in a part of the ecosystem that was underserved: growth-stage digital gaming companies that are too big for friends-and-family capital but not yet ready for bulge-bracket banks.

The Three Pillars: M&A, Capital, Strategy

XST focuses on companies with enterprise values between $25 million and $250 million - the range where serious growth decisions get made.

Their model revolves around three core pillars:

• M&A execution
• Debt and equity capital raises (seed through Series B and beyond)
• Strategic advisory, including investor relations, business development, and executive search

In other words, they’re not just helping companies sell. They’re helping them position. And in today’s market, positioning matters.

The Hottest Vertical in Gaming Right Now

When asked about current trends, Joel didn’t hesitate: prediction markets.

“It’s the topic du jour,” he said.

XST is actively working on multiple transactions in the space, reflecting how rapidly the sector is evolving. Whether companies are in sweepstakes, DFS+, traditional betting tools, or adjacent models, many are reevaluating their strategy in light of prediction market momentum.

That ripple effect is creating movement elsewhere too.

Joel expects consolidation in the betting tools space, especially as affiliate businesses look to pivot toward recurring revenue models. Tooling, analytics, and value-added services are becoming strategic add-ons not just side businesses.

After a quieter stretch, Joel believes regulated iGaming could re-accelerate, particularly as jurisdictions reconsider legalization timelines. If that happens, it adds another leg of growth to an already shifting industry.

Why XST Backs The Starties

XST was an early supporter of The Starties concept, a startup-first awards and networking platform built for founders, operators, and investors.

They’re back again this year for a reason. As Joel put it, serious transactions matter. But so do relationships.

And when you’re advising growth-stage companies navigating capital raises, M&A, or strategic pivots, proximity to founders and operators isn’t optional, it’s foundational.

The Starties Spotlight Series

Explore the full spotlight series:

• Ron Segev, Segev LLP: Smarter Capital, AI Shifts, and Building for the Long Game → Read Article
• TxODDS: Building Blockchain-Powered Pricing Infrastructure for the 2026 World Cup → Read Article
• Sparket: From Startup of the Year to Expanding the Betting Stack → Read Article
• Sportradar Futures Hub: Solving the Distribution Gap for Gaming Startups → Read Article

Each conversation offers a different lens on where gaming, betting, and iGaming innovation are headed and the people helping move it forward.

⭐Join Us at The Starties Networking Party | March 9 | NYC ⭐

Kick off the NEXT.io conference with founders, investors, operators, and startup supporters from across the iGaming ecosystem.

🗓 Monday, March 9

🕗 8:00pm – 11:00pm

📍 SHIFT Midtown – 330 W 38th St, New York

Presented by TxODDS
Co-hosted by BettingStartups x WagerWire
In partnership with NEXT.io and FoodFight

Capacity is limited 🎫 Get tickets at: TheStarties.com