Following DraftKings’ announcement that it had secured $41 million in venture capital funding, rival FanDuel did the same, gaining the lead over its rival with a fresh $70 million capital funding for its growing daily fantasy sports market.
The Wall Street Journal reports that the New York-based daily fantasy sports site has closed a Series D funding round with a handful of new investors that includes Shamrock Capital Advisors, NBC Sports Ventures, and private equity firm Kohlberg Kravis Roberts & Co.
This latest round of funding also featured the participation of FanDuel’s existing investors, including Bullpen Capital, Pentech Ventures and Comcast Ventures, the venture arm of Comcast Corp.
Shamrock Capital Advisors partners Mike LaSalle and Alan Resnikoff received seats on FanDuel’s board as part of the transaction. Likewise, NBC Sports Group’s Senior Vice President and Digital Media’s General Manager Rick Cordella has joined in as a board advisor.
“We are big believers in the value of sports, [its] share of the consumer wallet,” LaSalle said. “Fantasy sports is so important to the teams and the leagues. It produces engagement, and it’s where consumers spend a lot of their time.”
FanDuel CEO Nigel Eccles added that these new investments highlight FanDuel’s position as a market leader in the exploding daily fantasy sports industry. “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,” he added.
This new batch of investment money allows FanDuel to expand its business through aggressive marketing and player acquisitions. It already has partnerships with fantasy football giants like Yahoo! Sports, ESPN, and CBS.
In fact, CBSSports.com already posts FanDuel-related content on its site, including one posted over the weekend called “Week 1 steals for your FanDuel lineup.”
The company’s revenue numbers also suggest that the business is trending up. Last year, FanDuel reported earning $14.3 million in revenues, a number that’s close to reaching the first half of 2014 where its revenue is already up to $11.6 million. That’s a growth of close to 180% compared to the $4.2 million it earned last year. Business is also expected to pick up with the start of the NFL season, considered as the most popular time for fantasy sports participation.
“We see FanDuel’s clear leadership in the one-day fantasy sports space and we wanted to help them accelerate their already explosive growth,” LaSalle said. “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.”