Fantasy E-Sports Startup AlphaDraft Receives $5 Million In Funding
While gambling is still widely restricted in the U.S. the fantasy sports arena is providing a legally real money cash option to those of us looking for the thrill of winning cash. The latest spinoff from fantasy sports is e-sports where players get the chance to play their favorite computer game in fantasy leagues for real money.
Startups like AlphaDraft and Vulcan are leading the way in e-sports as they are tapping into a market audience of hundreds of millions who enjoy the gaming market. AlphaDraft is doing for gaming what DraftKings did for fantasy sports. They like their competitors Vulcan have attracted serious financing to the tune of $5 million. In fact the battle between AlphaDraft and Vulcan seems to mirror that of DraftKings and FanDuel.
Vulcan recently raised $12 million from Creative Artists Agency and includes investments from Melo7 Tech Partners who was founded by former Knicks player Carmelo Anthony and Former NBA Commissioner David Stern.
Just like daily fantasy sports a few years ago, the opportunity to get in on the ground floor is not missed by investors who have seen the likes of DraftKings and FanDuel grow into billion dollar companies in the space of a few years. Online fantasy sports are one of the faster growing sectors in the last few years will all the combined fantasy league sponsors topping $263 million this year alone. This is more than double that of last year. AlphaDraft will payout out over $5 million in prizes and cash this year and is aiming to reach 1 million monthly active users by the end of the year.
AlphaDraft are optimistic as to their growth forecasts and estimate that e-sports will generate over $500 million by 2017. The interesting question is if e-sports can really be compared to daily fantasy sports in terms of the revenue potential. The question also needs to be asked if DraftKings and FanDuel will join the e-sports market either independently or perhaps by acquiring the current main players.