According to financial news website Fortune, new investors in the firm include Revolution Growth, an investment vehicle co-founded by Ted Leonsis, the owner of NHL ice hockey franchise the Washington Capitals and NBA basketball team the Washington Wizards.
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Fantasy sports operator DraftKings Inc. said Thursday it has raised $150 million in venture investment, giving the company a fresh infusion of cash as it recovers from taxing legal battles and prepares for another critical National Football League season.
“Revolution Growth is a tremendous new partner for DraftKings, with an entrepreneurial outlook and spirit of innovation that meshes perfectly with the culture of our company”, Robins said in the statement.
The round of funding was “oversubscribed” and includes new investors in the daily fantasy giant, DraftKings CEO Jason Robins said in a statement.
In an Interview with Fortune Magazine this July, DraftKings CEO and Co-Founder Jason Robins stated that his firm needed to “take a second look at its advertising”, in a move to regain U.S. consumer confidence. As part of the deal Revolution Growth’s Steve Murray will be joining DraftKings’ board.
DraftKings’ valuation was estimated past year at nearly $2 billion after a $300 million fundraising round in July 2015 but has since fallen considerably.
2016 has not been kind year for DraftKings, the operator has faced numerous legal battles fighting for the legality of daily fantasy sports within numerous USA states.
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It has also been reported that the investment values DraftKings at a substantially lower market cap than the approximate $2bn worth the daily fantasy sports (DFS) operator held when it received $300m in Series D financing in July 2015. The funding comes right before the start of the NFL’s regular season, which historically is the biggest sport for fantasy sports, and suggests DraftKings has a big purse to spend on advertising the service.
