Fantasy sports operator Underdog expects to raise more $100 million in its latest funding round, giving the company an estimated value of over $1.2 billion.
The Series C funding round led by Spark Capital is expected to raise over $100 million upon completion, with the proceeds earmarked for product development and staff recruitment.
Underdog was previously valued at $485 million in July 2022 following the operator’s series B funding round.
Underdog first launched its fantasy sports offering in 2020 and expanded into sports betting in March 2024 with a rollout in North Carolina.
“Spark’s investment is a real accelerator,” said Underdog CEO and founder Jeremy Levine. “We’re going to continue to invest in people and product, and as fast as we can. There is so much more to build, and we’re going to keep building.”
Will Reed, general partner at Spark Capital, commented: “This investment fits Spark’s philosophy of backing products we love from creators we admire. Underdog has proven they can win where it matters most: product.
“They’ve also shown they can attract top talent from gaming, tech, and sports. Their unwavering focus on product and customer experience is why they’ve emerged as the most innovative player in sports gaming. We see massive opportunity ahead and are thrilled to be on the journey with them to make sports more fun.”
The investment follows Underdog’s recent $17.5 million settlement with the New York State Gaming Commission for offering contests that were “not expressly permitted”.
Underdog is also facing a class action lawsuit in New York, which alleges that the company engaged in unlicensed sports betting under the guise of fantasy sports contest.