Underdog secures $70 million in Series C funding led by Spark Capital

Brooklyn-based sports gaming company Underdog has secured a $70 million first close in its Series C funding round, led by multi-stage venture capital firm Spark Capital.

The round is expected to exceed $100 million, pushing Underdog’s pre-money valuation to $1.225 billion—nearly triple its Series B valuation in 2022. Spark’s investment marks the largest backing from a top-tier Silicon Valley venture firm in the sports gaming industry.

“Spark’s investment is a real accelerator,” said Jeremy Levine, CEO and founder of Underdog. “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.”

Launched in 2020, Underdog has quickly grown to become the fourth most downloaded sports gaming app in the U.S., operating in 41 states with nearly four million customers. The company is currently applying for a sports betting license in Missouri and preparing to launch fantasy gaming in New Jersey.

Just 11 days ago, Underdog received regulatory approvals to operate its Pick’em Champions game in New Jersey and Delaware. The peer-to-peer contests allow participants to draft rosters of two to eight athletes and predict whether they will exceed or fall short of their statistical projections.

Since its inception, Underdog has raised over $140 million from prominent investors, including BlackRock, former Dallas Mavericks owner Mark Cuban, NBA superstar Kevin Durant, Harris Blitzer Sports Entertainment, and SV Angel.

The company was founded in 2020 by CEO Jeremy Levine, who previously founded daily fantasy sports startup DRAFT (which sold to Paddy Power Betfair for $48 million in 2017).

“This investment fits Spark’s philosophy of backing products we love from creators we admire,” said Will Reed, General Partner at Spark Capital.

Reed noted that the firm has established itself as a leader in sports gaming by excelling in product development and attracting top talent. “We see massive opportunity ahead and are thrilled to be on the journey with them to make sports more fun,” he added.