Underdog Valued at $1.23 Billion Following Latest Funding Round

Posted on: March 26, 2025, 07:06h. 

Last updated on: March 27, 2025, 10:03h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Daily fantasy sports giant now valued at more than $1 billion
  • Valuation could move higher because funding round is still open

Underdog Fantasy Sports is now valued at $1.23 billion following a $70 million funding round led by venture investor Spark Capital.

Underdog
The Underdog Fantasy Sports logo. The company was valued at $1.23 billion in a Series C funding round. (Image: PR Newswire)

The gaming company confirmed the news to Axios on Wednesday. It’s possible the valuation of the privately held firm could move higher because the current funding round could accommodate more than $100 million in financing.

Brooklyn-based Underdog Fantasy has now raised $140 million since it was founded in 2020 by CEO Jeremy Levine and others. The company started as a daily fantasy sports (DFS) alternative to DraftKings and FanDuel. It gained traction among competitors who grew tired of “sharks” dominating tournaments on rival platforms, carving out a niche among bettors and DFS players that enjoy player proposition (prop) wagers.

Underdog has gained significant attention for its large tournaments, such as Best Ball Mania, which offers substantial prizes, including a $3 million payout for the winner recently,” notes Seeking Alpha. “Underdog also offers a “Pick’em” format, where users can build parlays based on player props across various sports, similar to traditional sportsbook parlays.”

The company has branched out into traditional sports wagering, running a sportsbook in North Carolina with plans to enter Missouri later this year.

Underdog Fantasy Small, Mighty

The aforementioned funding round is Series C, which is considered late stage. In some cases, that implies the company in question is readying an initial public offering (IPO), but Underdog hasn’t commented to that effect.

If Underdog were to pursue an IPO at a valuation of $1.23 billion, that would be well below the market caps of FanDuel and DraftKings, and some smaller online sportsbook operators. However, companies have been remaining private longer in efforts to bolster their pre-IPO multiples.

While it hasn’t been confirmed that Underdog is mulling an IPO, it appears as though Levine isn’t looking to sell the company. In 2014, he sold the user database of fantasy sports startup StarStreet to DraftKings, striking an agreement that allowed him to start competing entities. Three years later, he sold the DFS company DRAFT to Paddy Power Betfair for a total of $48 million. Paddy Power Betfair would later become part of FanDuel parent Flutter entertainment.

This time around, Levine doesn’t appear to be aiming for a sale, as he recently told employees he’s tired of finishing behind DraftKings and FanDuel, according to Axios.

Underdogs Sports Impressive Investor Roll

Alone, Spark Capital makes for a ballyhooed investor in Underdog. The venture capital firm has notched a slew of successes, including investments in Coinbase, Grammarly, Plaid, Postmates, and Weatlhfront, among others.

Other Underdog investors include asset management giant BlackRock, Dallas Mavericks minority owner Mark Cuban, and NBA star Kevin Durant.

Underdog, which says it has over 5 million users, is available in 41 states, Washington, DC, and Canada.