Spark Capital, a multi-stage venture capital firm, announced Wednesday morning a $70 million first close on a Series C funding round for Brooklyn, N.Y.-based Underdog, one of the fastest-growing sports gaming companies in the U.S.
The round is expected to close over $100 million. The recent funding has raised Underdog's value to $1.225 billion pre-money, nearly three times its Series B valuation from 2022.
Spark’s latest investment marks the sports gaming industry’s largest investment from a top-tier Silicon Valley venture capital firm.
“Spark’s investment is a real accelerator,” said Jeremy Levine, CEO and founder of Underdog in a news release. “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.”
Currently, Underdog operates in 41 states since launching in 2020 and has close to four million customers, making them the fourth most downloaded sports gaming app in the nation. They are currently applying for a sports betting license in Missouri and are about to launch fantasy in New Jersey.
Just 11 days ago, Underdog announced regulatory approvals to operate its Pick’em Champions game in New Jersey and Delaware. These contests are peer-to-peer games in which participants create a roster of two to eight athletes and whether they go higher or lower on their offered statistics.
In five years, Underdog has raised more than $140 million with investors including BlackRock, former Dallas Mavericks owner Mark Cuban, NBA superstar Kevin Durant, Harris Blitzer Sports Entertainment, and SV Angel.
“This investment fits Spark’s philosophy of backing products we love from creators we admire,” said Will Reed, general partner at Spark Capital.
“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."
