DFS startup Underdog has more firepower to enter the US mobile sports betting market after securing $35 million in Series B funding. [Image: Shutterstock.com]
The value of the company rises
The value of Underdog Fantasy, a New York-based daily fantasy sports (DFS), has grown to $485 million after a second round of fundraising raised $45 million.
fund injection led by one of the world’s largest asset managers
The DFS company announced its windfall for Series B financing on Tuesday. Josh Norris, Underdog’s head of content strategy and production, took to Twitter to announce the fund injection led by one of the world’s largest asset managers, New York-based BlackRock:
Underdog launched its first game offering on July 17, 2020
and now here we are, with so much more on the way
An incredible group of colleagues and a truly amazing community that grows every day
Thanks 👊👊👊 https://t.co/o5bDXcx57O
— Josh Norris (@JoshNorris) July 26, 2022
Also involved in the $35 million funding was Acies Investment, a California-based sports betting, iGaming and eSports company. Chris Gove, co-founder of Acies, said Underdog’s “unique focus on product and experience will reshape the industry” as the DFS company plans a move into licensed sports betting, starting with Ohio and Colorado in 2023.
Buzz on sports betting
In addition to FanDuel and DraftKings, Underdog’s goal is to expand from DFS into mobile sports betting. It has already successfully applied for a sports betting license in the active Colorado market and in Ohio, starting January 1, 2023. According to the Wall Street Journal, Underdog is engaged in “an aggressive recruitment wave” to recruit more than 100. new employees because it wants to build licensed sports betting.
In a press release Tuesday, Gove underlined why Underdog is so attractive to investors in US sports betting. “While the typical sportsbook spends over $500 to acquire a customer, Underdog brings in new users for a fraction of that,” he noted.
Since launching in 2020 with its first gaming product, Underdog has already attracted high profile supporters, from American sports stars such as Odell Beckham Jr and Kevin Durant to rappers Nas and Future, along with DJ Steve Aoki. Industry investors include ex-Paddy Power Betfair CEO Breon Corcoran, billionaire Mark Cuban, Zynga founder Mark Pincus and boutique research firm Eilers & Krejcik Gaming.
Underdog in the elevator
Following Tuesday’s funding, Jeremy Levine, president and chairman of Underdog, said that since its launch in 2020, the DFS company believes that:
building quality products and putting the customer first is a winning recipe.”
Levine added that the new funding round gives Underdog “the firepower to continue building and we will build.”
He also said his company was “elated” to see funds and accounts managed by fellow NYC entity BlackRock enter the second round of fundraising as Underdog continues to pursue his vision.
This post Underdog Plans Sports Betting Launch After $35 Million Funding
was original published at “https://www.vegasslotsonline.com/news/2022/07/27/underdog-fantasy-plans-sports-betting-launch-after-firms-value-upped-to-485m/”