FanDuel expands in US
Capital-based fantasy sports provider secures investment from major US players
FANDUEL, the Edinburgh-based fantasy sports provider, has underlined ambitious plans to expand in its core US market after securing $ 275 million ( £ 176 . 5 m ) of investment.
Private equity giant KKR led the over-subscribed investment round in the fast-rising technology firm, with Google Capital and Time Warner Investments, alongside Turner Sports, taking part.
FanDuel, which provides fantasy leagues for American sports, will use the funding to boost player numbers in the US and Canada, accelerate product development and bolster its management team.
It will also work on initiatives to create the “ultimate fan experience”.
The company has now raised a total of $363m (£233m) in Series E financing, which has also seen it attract investment from various NFL and NBA teams.
Previous investors such as Shamrock Capital, NBC Sports Ventures, Comcast Ventures, Bullpen Capital, Pentech Ventures and Piton Capital have taken part in the latest round.
FanDuel is headed by Northern Ireland-born chief executive Nigel Eccles, who founded the firm with wife Lesley.
He said: “Having partners like KKR, Google Capital and Time Warner/Turner Sports invest in FanDuel underscores the way this company is transforming the sports entertainment industry.
“This roster of investors, with expertise across finance, technology, advertising and sports entertainment, is committed to the growth and success of FanDuel as a gamechanger for the sports industry.”
FanDuel has pioneered daily games in the US fantasy sports market and has 41 million active players, with paid active users up 300 per cent on last year.
It allows players to take part in daily public and private leagues in sports such as baseball, basketball, American football and college soccer.
It handed out $560m (£360m) in prize money in 2014 and is aiming to raised that to $1.5 billion (£963m) this year.
Ted Oberwager of private equity group KKR said: “We are thrilled to support FanDuel’s next phase of growth given the company’s leading position in the daily fantasy market, model operating principles, highly efficient customer acquisition capabilities and visionary management team.
“FanDuel is poised to become the top sports entertainment platform for fans around the world.”
The investment boost comes shortly after FanDuel declared its intention to hire 200 software specialists at its new office in Glasgow, amid plans to double its workforce in Scotland this year.
It has already increased team in Edinburgh to 89 from 60 since the start of the year.
The company, which began life in 2009, recently hired 40 developers for its office in Orlando, Florida. That team focuses exclusively on sports and mobile gaming and is finalising exclusive, multi-year partnerships with 13 NBA teams and 16 NFL teams.
The most recent hires mean FanDuel employs a total headcount of 230 across its operations in the UK and the US, where alongside Florida it has offices in New York and LA. This tally is up on the 125 it had on its roster at the start of the year.
FanDuel followed in the footsteps of fellow Scottish technology star Skyscanner when it announced plans for its first Glasgow office at the end of last month.
The company, which has leased an 8,450 square foot, Grade A office on West Regent Street, said it was attracted to the city because of the ability to access high-quality IT professionals.
Candidates who could boost its UK-based engineering team in Glasgow and Edinburgh are actively being pursued, with the company looking for experts in programming languages such as java and python. FanDuel said in late June that it hoped to move into its Glasgow office, which is currently being fitted out, within two months.