Startup Secures Valuation of $1.23 BillionPost-Funding Round Boosts Emerging Company's Value
In the dynamic world of sports gaming, Underdog Fantasy Sports continues to make waves, recently achieving a valuation of $1.23 billion following a successful Series C funding round. This milestone marks the company's status as a unicorn, but there's no official word yet on plans for an Initial Public Offering (IPO).
Founded in 2020 by CEO Jeremy Levine and a team of visionaries, Underdog Fantasy started as a daily fantasy sports (DFS) alternative to industry giants like DraftKings and FanDuel. However, the company has since expanded its offerings, venturing into traditional sports wagering and gaining traction among bettors and DFS players who appreciate player proposition (prop) wagers.
Underdog Fantasy's unique "Pick'em" format allows users to build parlays based on player props across various sports, similar to traditional sportsbook parlays. This innovative approach has helped the company carve out a niche in the competitive sports gaming market.
The Series C funding round, led by Spark Capital, brought in $70 million, contributing to a total of $140 million raised by Underdog Fantasy since its inception. Interestingly, the valuation was determined post this round, and the funding is still open, with potential for additional financing of over $100 million.
Despite the significant valuation, Underdog Fantasy remains a privately held company, and CEO Jeremy Levine has not commented on the possibility of an IPO. However, his recent comments to employees, reported by Axios, suggest a desire to compete more effectively with DraftKings and FanDuel.
Underdog Fantasy boasts over 5 million users and is available in 41 states, Washington D.C., and Canada. The company has also branched out into traditional sports wagering, operating a sportsbook in North Carolina, and plans to enter Missouri later this year.
Notable investors in Underdog Fantasy include asset management giant BlackRock, Dallas Mavericks minority owner Mark Cuban, and NBA star Kevin Durant. Spark Capital, known for investments in Coinbase, Grammarly, Plaid, Postmates, and Wealthfront, among others, is also an investor in Underdog Fantasy.
As Underdog Fantasy continues to grow and expand, the question of an IPO remains unanswered. However, with its innovative approach to sports gaming and a valuation that places it below the market caps of FanDuel and DraftKings, the company appears to be in a strong position, regardless of its public status.
- Underdog Fantasy, despite being valued at $1.23 billion, has not commented on the possibility of an Initial Public Offering (IPO), with its CEO, Jeremy Levine, showing a desire to compete more effectively with industry giants like DraftKings and FanDuel.
- Founded in 2020, Underdog Fantasy started as a daily fantasy sports (DFS) alternative, but has since expanded its offerings, venturing into traditional sports wagering and gaining traction among bettors and DFS players who appreciate player proposition (prop) wagers.
- In the competitive sports gaming market, Underdog Fantasy's unique "Pick'em" format, which allows users to build parlays based on player props across various sports, has helped the company carve out a niche.
- Underdog Fantasy's investors include asset management giant BlackRock, Dallas Mavericks minority owner Mark Cuban, NBA star Kevin Durant, and venture capital firm Spark Capital, known for its investments in technology-focused companies such as Coinbase, Grammarly, and Wealthfront.
