Fantasy sports company Underdog Fantasy has confirmed a Series B fundraising round, with funds and accounts managed by BlackRock and Acies Investment.
The round is worth $35 million, with the company valued at a total of $485 million. Going forward, the company intends to create licensed sports betting products and hire over 100 new employees.
Underdog has made significant customer acquisitions over the past two years and recently launched a $10 million NFL Best Ball tournament.
Underdog Chairman and President Jeremy Levine said, “Since Underdog’s inception, we have believed that manufacturing quality products and putting customers first is a winning recipe.
“We are excited to continue innovating and creating new experiences from the ground up in fantasy, sports betting and adjacent spaces. This round of funding gives us the firepower to keep building and building.
“We are excited to have funds and accounts managed by BlackRock participate in our Series B as we pursue our vision.”
BlackRock and Acies joined existing investors including Mark Cuban, Kevin Durant and former Paddy Power Betfair CEO Breon Corcoran.
Chris Grove, co-founder of Acies, said, “Underdog’s product offers competitive advantages because Underdog’s success in customer acquisition and retention is best in class.
“Underdog’s success is driven by the company’s focus on creating innovative new games and delivering incredible customer experiences. As the company ventures into licensed sports betting, I believe that the focus on product and experience will reshape the industry.”
Underdog signed a sponsorship deal with Champion Gaming Group’s football statistics and analysis site, Football Outsider, in March 2022.
Through this agreement, Underdog sponsors Football Outsider’s premium content, including prospect analysis, editorial columns, podcasts and video content.