Fantasy sports site FanDuel raises $275M at $1 billion valuation

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”.

The investors include the investment firm KKR, Google Capital, and funds connected to broadcasters Turner Sports, NBC Sports, Time Warner and Comcast. FanDuel is now not profitable, but claims paid active users have grown 300% from a year ago.

Using its partnerships in the National Football League, NBA, MLB, NHL, the FanDuel provides sports fans the chance to draft and follow the performances of their idealised teams.

Fantasy-sports gaming, in which players compete with virtual teams and players for real cash and prizes, is a booming business. It offers one-day options for pro and college sports and public and private leagues.

Nigel Eccles, co-founder and chief executive of FanDuel, 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”.

FanDuel, based in New York City, was founded in 2009. FanDuel became the NBA’s official one-day fantasy game in November and it also has deals with individual National Basteball Association and NFL teams.

KKR principal Ted Oberwager said he was thrilled to support FanDuel’s next phase of growth “given the company’s leading position in the daily fantasy market, model operating principles, highly efficient customer acquisition capabilities, and visionary management team”.