Youbet raises $2 million With Notes has received an additional $2 million in funding from private investors through the sale of interest-bearing notes, the online wagering company announced Tuesday.

A press release to investors said the funds will be used "to provide additional flexibility as the company leverages the rapid growth it has recently experienced in handle and account activity."

The notes will be due in two years and bear 10% interest. Investors also will be allowed to purchase two-thirds of a share of company stock for each dollar invested.