Underdog achieves $1.2bn valuation following Series C funding round
DFS and online sports betting firm secures at least $70m in raise led by Silicon Valley VC Spark Capital to push it into unicorn territory
Underdog has been valued at more than $1.2bn following a Series C funding round led by Spark Capital, which is set to close its first tranche at $70m.
The round, which is expected to eventually exceed $100m, will value the DFS and online sports betting firm at $1.23bn, making Underdog a unicorn in the process.
Unicorns are privately owned companies that are valued at more than $1bn.
Following Underdog’s Series B funding round in July 2022, the business was valued at $485m.
The latest capital raise means the company has almost tripled in value in under three years.
Underdog said the Series C funds would primarily be used to invest in “creating the best products for sports fans in the US” and hire “top-tier talent.”
The company added that Spark Capital’s commitment showed there was “market confidence in Underdog’s continued growth and potential.”
Spark Capital has previously invested in Discord, Slack, Coinbase, Grammarly, eToro, and Oculus.
Underdog said the investment marked the “sports gaming industry’s largest investment from a top-tier Silicon Valley venture capital firm.”
The company was founded in 2020 and claims to have almost four million customers across the US while being the fourth-most-downloaded sports gaming app in the market.
The business expanded out of its DFS roots last year and launched online sports betting in North Carolina.
It offers multiple DFS game types, from traditional drafts through to pick’em-style products, or DFS+, which have come under criticism for masquerading as player prop betting markets.
Jeremy Levine, Underdog CEO and founder, said: “Spark’s investment is a real accelerator. 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, Spark Capital general partner, added: “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.”