With companies and investors looking to capitalize on the fantasy sports market that has become worth tens of billions per year, DraftKings has raised $41 million in Series C funding led by The Raine Group, with additional participation from Redpoint Ventures, GGV Capital and Atlas Venture. DraftKings has raised around $75 million in VC, including a $24 million Series B round in November last year at a valuation of over $93 million. Rather than a more traditional season-long fantasy season, users of the site can participate in single-day fantasy leagues for free or for cash buy-ins and prizes. Its fantasy leagues are available for the NBA, NHL, MLB, NFL, PGA and both NCAA football and NCAA men's basketball. The company expects to pay out around $200 million in prizes this year.
In addition to the funding, DraftKings has acquired StarStreet.com, a competitor in the fantasy sports industry. The acquisition adds to Draft Kings' user base, helping it increase market share in the industry which reportedly supports nearly 37 million users in North America alone. StarStreet had raised about $2 million in funding prior to the acquisition. Investors included Ecosystem Ventures, SV Angel and TechStars, among others.