Series C Funding Round Pushes Underdog Valuation Over $1 Billion

• Spark Capital is leading Underdog Fantasy’s Series C Funding Round
• The first round is expected to exceed $100 million
• This now pushed Underdog’s valuated at over $1 billion

A new investment in Underdog Fantasy has increased the sports gaming company’s valuation to over $1 billion.

Spark Capital led Underdog’s Series C funding round, with a $70 million first close on a round expected to exceed $100 million. The funding round has raised Underdog’s valuation to over $1 billion pre-money, nearly tripling its series B valuation of $485 million.

According to the company, the funding will primarily allow Underdog to further invest in creating new products and attract top-tier talent.

Valuation Now at $1.225 Billion

Underdog’s valuation is now set at $1.225 billion pre-money. Jeremy Levine, CEO and Founder of Underdog, said the investment from Spark will be a “real accelerator” for the company’s plans moving forward.

“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,” Levine said.

Founded in 2020, the Brooklyn-based company has become a top player in the sports gaming industry, touting nearly 4 million customers nationwide and the fourth most downloaded sports gaming app in the U.S., measured to include all sports betting and fantasy sports apps.

Spark’s investment is the largest investment from a top-tier Silicon Valley venture capital firm in the sports gaming industry, according to an Underdog release.

“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.”

March has been a busy month for Underdog, as it also announced plans to expand its sports betting portfolio into Missouri.

Expansion into the Show-Me State?

An Underdog Fantasy representative recently confirmed with Sports Betting Dime that the company will be applying for a Missouri sports betting license when the Missouri Gaming Commission opens the license application window.

If approved, Underdog Fantasy would hold four live sports betting licenses across the U.S.

 Underdog Fantasy currently offers online sports betting in North Carolina and holds active sports betting licenses in both Colorado and Ohio, but has yet to launch in either state.

Under the state’s sports betting legislation, each professional sports franchise and land-based casino will be eligible for one retail sports betting license and one online sports betting license. Each individual team and casino will also be able to partner with up to one online sports betting operator, which is likely where Underdog Fantasy will fit in.