Fantasy sports company Underdog Sports has announced the completion of a Series B fundraising round raising $35m, valuing the company overall at $485m.
Underdog plans to use the funds over the next year to “build innovative licensed sports betting products”, hire over 100 new employees, and “continue to lead the industry in daily fantasy innovation”.
The round’s investors featured funds and accounts managed by BlackRock and Acies Investments.
“While the typical sportsbook is spending over $500 to acquire a customer, Underdog is bringing in new users for a fraction of that. Underdog’s product is leading to competitive advantages as Underdog’s customer acquisition and retention success is best in class” commented Chris Grove from Acies Investments.
“Underdog’s success is driven by the company’s focus on building new, innovative games and delivering amazing customer experiences. As the company moves into licensed sports betting, I believe that the unique focus on product and experience will reshape the industry.”
BlackRock and Acies Investment join existing Underdog investors such as Mark Cuban, Kevin Durant, Trae Young, Odell Beckham Jr, Breon Corcoran (ex-CEO Paddy Power Betfair/Flutter), Mitch Garber, Eilers & Krejcik, Liontree Partners, Kevin Carter, Mark Pincus (founder of Zynga), SV Angel, The Chainsmokers, Kygo, Steve Aoki, Nas, and Future.
Jeremy Levine, President and Chairman of Underdog, added: “Since the start of Underdog we’ve believed that building quality products and putting customers first is a winning recipe. We’re excited to continue to innovate and build new experiences from the ground up in fantasy, sports betting, and adjacent spaces.
“This funding round gives us the firepower to continue to build, and build we will. We’re thrilled that funds and accounts managed by BlackRock are participating in our Series B as we continue towards our vision. Our players, and players of the future, are going to be delighted by the experiences they’ll be able to enjoy exclusively on the Underdog platforms.”
Earlier this year, Underdog made a key hire in growing its upcoming sports betting product, appointing Stacie Stern as its Vice President of Government Affairs & Partnerships.
Stern most recently worked for FanDuel, is the current Chair of the Fantasy Sports and Gaming Association, and has over 20 years of experience in the sports betting and gaming industry.