Revolution Growth Announces Investment in DraftKings
Online Fantasy Sports Industry is Transforming the Business of Sports
WASHINGTON, D.C. – September 1, 2016 – Today Revolution Growth, led by co-founders Steve Case, Donn Davis, and Ted Leonsis, announced its investment in Boston-based online fantasy sports leader DraftKings. The investment comes from the recently announced $525 million Revolution Growth III fund, and as part of the investment, Steve Murray will be joining the board.
The team at Revolution has a strong track record of investing in and building companies with high-growth potential that are using technology to disrupt existing multi-billion dollar industries like sports. We believe that the most successful companies in the next wave will be those based in regions outside of Silicon Valley, who understand the importance of forming partnerships with outside organizations, and those that have a fluent grasp of the policy issues they will encounter.
“Online fantasy sports are just one of the many ways technology has disrupted the sports industry in recent years,” said Revolution Growth partner Steve Murray. “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.”
The DraftKings investment is Revolution Growth’s second in the sports industry over the past year. Last October, the firm announced it had led a $44 million investment in the sports data and analytics company, Sportradar, which provides data and analytics to media companies, technology companies, fantasy sports leagues, and gaming and professional sports franchises.
In just a few years daily fantasy has become a multi-billion-dollar segment and continues to grow rapidly. In 2015, four million players in North America participated in daily fantasy sports out of the estimated 57 million total fantasy sports participants, representing less than 10 percent penetration in the segment. The total annual spend in the North American fantasy sports market was estimated at $26 billion in 2015, which demonstrates tremendous potential for future daily fantasy growth.
About Revolution Growth
Revolution Growth invests in companies that can change the world. Its mission is to build disruptive, innovative businesses that offer consumers more choice, convenience, and control in their lives. By taking a long-term approach and developing strong partnerships with entrepreneurs and management teams, Revolution Growth brings a unique strategy and passion to investing in and building significant companies. For more information, visit www.revolution.com/growth.