On the side of the angels – sale of fantasy sports business could benefit start- ups

Fanduel co- founder pledges to use potential windfall to invest in new Capital firms, writes Chris Mccall

The sale of fantasy sports business Fanduel could benefit future tech start- ups in Edinburgh, one of its co- founders said.

It was confirmed this week that betting giant Paddy Power Betfair is in talks to merge its US business with Fanduel, which was founded in the Capital, “to create a combined business to target the prospective US sports betting market”. The proposed merger follows the move by the American Supreme Court to overturn 1992 legislation that banned sports betting in most US states.

Fanduel’s five co- founders, who have all since left the business, stand to earn substantial amounts through their shareholdings if the deal goes through.

Former chief executive Nigel Eccles, who left Fanduel at the end of last year, has said he and his former colleagues could use the funds to boost future tech businesses.

“The co- founders have already been investing their time and money in other companies,” he said in a newspaper interview. “There are some great start- ups coming through Edinburgh right now and I’d love to be an angel investor in them.

“The other founders feel similarly that they would like to invest in some of those. I’m super excited about Edinburgh – it’s transformed in the last eight years.”

It is likely that the sale will be for a sum of at least several hundred million dollars.

“Discussions are ongoing and there is no certainty as to whether agreement will be reached, or as to the terms or timing of any transaction,” Paddy Power said in a stock market announcement on Wednesday. No financial details of the transaction were given.

The group that stands to benefit from any sale includes the firm’s co- founders – Mr Eccles, Lesley Eccles, Tom Griffiths, Rob Jones and Chris Stafford – as well as the Scottish Investment Bank and angel investor Simon Murdoch.

On Monday, Fanduel said: “The Supreme Court’s decision creates an enormous opportunity for Fanduel as our platform, brand and customer base provide a unique foundation to meaningfully participate.”

0 Nigel Eccles aims to be an ‘ angel’