The fantasy sports operator is announcing that it has raised a whopping $275 million Series A, bringing total capital raised to $363 million and valuing the company at “over $1 billion”. Time Warner’s investment came together with the media conglom’s Turner Sports division.
FanDuel said its paid active users in the USA has grown 300 per cent in the a year ago.
In addition, several NFL and National Basteball Association team owners (which FanDuel didn’t identify) participated in the funding round along with previous investors NBC Sports Ventures, Comcast Ventures, Shamrock Capital, Bullpen Capital, Pentech Ventures and Piton Capital. Players can also win cash prizes.
Company behind one-day fantasy league games has experienced great success in the U.S.
Based on reported revenue, FanDuel held 63 percent of the daily fantasy market in 2014, while No. 2 DraftKings Inc. had 33 percent, according to Eilers Research.
The financing will be used to accelerate customer numbers across the USA and Canada, develop new products and strengthen its management team.
Nigel Eccles, a former group business development manager at Johnston Press in Edinburgh who co-founded the company, said: “Having partners like KKR, Google Capital and Time Warner/Turner Sports invest in FanDuel underscores the way this company is transforming the sports entertainment industry”.
Investment bank Mesa Global, recently acquired by Houlihan Lokey, advised FanDuel in the transaction.
A major selling point of daily fantasy sports is how little commitment they require.
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