Key points:
- Spark Capital leads Series C round for Underdog with $70m first close, expected to exceed $100m
- The raise triples Underdog’s 2022 Series B valuation, reaching a $1.23bn pre-money valuation
- Funding will support product development and recruitment as Underdog expands its US sports gaming offerings
Underdog, a US-based sports gaming company, has completed the first close of its Series C funding round, raising $70m in an investment led by Spark Capital.
The round, which is expected to surpass $100m, values the company at $1.23bn pre-money – nearly triple its valuation from its previous Series B round in 2022.
Spark’s involvement is being cited as one of the largest sports gaming investments made by a top-tier Silicon Valley venture capital firm. The funding will primarily be used to invest in product development and expand Underdog’s workforce.
Underdog CEO and founder Jeremy Levine said: “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.”
Founded in 2020, Underdog now has nearly four million customers, covering both sports betting and fantasy gaming segments. Its platform integrates original fantasy games with betting markets, along with proprietary news and sports media content.
Good to know: The funding round follows Underdog’s continued media expansion, including the growth of Gil’s Arena
In October 2023, Underdog launched the GuardDog fund, a $1m initiative to support startups developing tools and technologies aimed at reducing gambling-related harm. The company has also partnered with analysts and advocacy groups to strengthen its responsible gaming approach.
Spark Capital General Partner Will Reed commented: “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.”
