Online daily fantasy sports provider FanDuel has announced the closing of a $70m Series D funding round which was led by Shamrock Capital Advisors, with NBC Sports Ventures and investment firm KKR also participating.
Following the latest investment round, which also saw existing investors Comcast Ventures, Pentech Ventures, Bullpen Capital, Scottish Enterprise, and serial investor Richard Koch participate, the company has now raised total capital of $88m.
“This level of investment from Shamrock, NBC Sports, KKR and our existing investors is a testament to FanDuel’s leadership in the one-day fantasy sports industry and the growth potential within this space,” said Nigel Eccles, CEO of FanDuel. “We couldn’t be more pleased to be able to make this announcement at the start of football season, as more users begin to embrace the one-day fantasy experience.”
Mike LaSalle and Alan Resnikoff, partner and principal of private equity firm Shamrock Capital Advisors, have joined FanDuel's board, while and Rick Cordella, NBC Sports Group’s senior vice president and general manager, Digital Media, has joined as a board observer.
“We see FanDuel’s clear leadership in the one-day fantasy sports space and we wanted to help them accelerate their already explosive growth,” said LaSalle. “We look forward to working closely with FanDuel as they build out their web and mobile platforms and develop closer relationships with the leagues and media partners.”
FanDuel is one of the leaders of the growing US fantasy sports market, with partnership with popular brands including Yahoo, ESPN, CBS, NBC and the Orlando Magic basketball team.
Similar to rival DraftKings, the company differs from traditional fantasy sports in which league winners are only declared after the entire multi-month season ends. With FanDuel, the leagues can last just one day and prizes are paid out immediately after the relevant games have finished.
FanDuel said that it will use the funds to expand its teams in New York and Edinburgh, which are currently 106 employees strong, while the company will continue to introduce innovative, new products and features to its players across North America.
FanDuel has reported strong growth over the past year, and now claims to represent 65 per cent of the daily and weekly fantasy sports market. It expects to pay out more than $400m to users in 2014.