Underdog, a paid fantasy sports company based in New York, closed a Series B round of fundraising totaling $35 million. The round, which includes funds and accounts managed by BlackRock and Acies Investment, values the company at $485 million. Over the next year, Underdog plans to build "innovative" licensed sports betting products, and hire over 100 new employees.
BlackRock and Acies Investment join existing investors 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, Future, among others.
"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," said Chris Grove from Acies Investments, who invested alongside BlackRock in the round. "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."
Chris Grove, among the investors
"Since the start of Underdog we've believed that building quality products and putting customers first is a winning recipe," said Jeremy Levine, President and Chairman of Underdog. "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 fire power 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," Levine concluded.
BREAKING— Underdog Fantasy (@UnderdogFantasy) July 26, 2022
Underdog has raised $35,000,000 in Series B funding led by BlackRock
Underdog is now valued at $485,000,000 pic.twitter.com/m0XOyaPErA
In just over two years, Underdog has quickly acquired a significant number of users, and recently launched a $10 million season-long NFL Best Ball tournament, which is the largest season-long fantasy prize pool ever, according to the company.