FanDuel Raises $275 Million In Series E Round Of Funding
Our regular readers are well aware of the phenomenal growth of the daily fantasy sports betting market. The main players until now have been FanDuel and Draft Kings who between them have signed sponsorship deals with the biggest franchises in U.S. sports franchises including the NBA, NHL, MLB, NASCAR and the UFC.
The skeptics are no longer questioning the one billion dollar IPO evaluation that was thrown around earlier this year in Fortune. According to the report the IPO could be a reality as soon as 2016.
The latest news that strengthened the rumor mill is the reported $275 million on Series E financing that FanDuel have just closed. This makes their total capital raised to date at $363 million. Some of the biggest names in business were part of the latest round, they include KKR, Google Capital, Time Warner Investments, and Turner Sports involvement.
The timing of the news comes just weeks after DraftKings confirmed an undisclosed deal with ESPN. FanDuel said they intend to use the new capital to accelerate user acquisition efforts as well as the introduction of new features and products. With FanDuel and DraftKings in an all-out war of domination for control of the DFS sectors, the news that Yahoo will be entering the arena will mean that the competition will only get fiercer in what some see is nothing less that real money sports betting.
FanDuel has increased their paid active users by 300% from the same period last year. CEO and Founder Nigel Eccles commented on the deal,” Having partners like KKR, Google Capital and Time Warner/Turner Sports invest in FanDuel underscores the way this company is transforming sports entertainment. This roster of investors, with expertise across finance, technology, advertising and sports entertainment, is committed to the growth and success of FanDuel as a game-changer for the sports industry.”
Equally happy to join forces with FanDuel was Ted Oberwager of KKr who said,” We are thrilled to support FanDuel’s next phase of growth given the company’s leading position in the daily fantasy market, model operating principles, highly efficient customer acquisition capabilities, and visionary management team, FanDuel is poised to become the most engaging digital entertainment platform for sports fans around the world.”