DraftKings Raises $153 Million in New Financing
The new round of capital breathes some much needed life into the daily fantasy sports giant as it fights for its life in state houses across the country.
Though there are believed to be multiple finance partners participating in the deal, only Revolution Growth, a Washington, D.C. venture capital run by Steve Case, was identified by name.
Revolution Growth has strong ties to the sports world and was founded by Ted Leonis. Leonis is also the owner of Washington Capitals and Washington Wizards. That a company with such a close association to the world of professional sports would invest in DraftKings speaks volumes about how big league sports sees a difference between daily fantasy sports and traditional sports betting.
As part of the deal, Revolution Growth partner Steve Murray will be joining DraftKings’ board of directors, according to Fortune.com.
Not surprisingly, representatives from both companies spoke glowingly about the deal.
On the Revolution Growth side Murray made it clear that the legal hurdles in front of the daily fantasy sports industry saying:
Building a business is never easy, especially one that is leading the creation of a new marketplace, but Revolution has the expertise to help entrepreneurs execute on their ideas, especially where sports and policy intersect.
On the DraftKings side, company co-founder and CEO Jason Robins praised his new partners saying:
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.
With this latest cash injection, DraftKings has raised a little more than $630 million in venture capital.