The round, led by venture-capital firm KKR, brings New York-based FanDuel to $363 million raised to date. Time Warner’s investment came together with the media conglom’s Turner Sports division. FanDuel is currently not profitable, but claims paid active users have grown 300% from a year ago.
In addition, several NFL and NBA team owners (which FanDuel didn’t identify) participated in the funding round along with previous investors NBC Sports Ventures, Comcast Ventures, Shamrock Capital, Bullpen Capital, Pentech Ventures and Piton Capital.
Fantasy-sports gaming, in which players compete with virtual teams and players for real cash and prizes, is a booming business. In 2014 U.S. and Canadian fans spent an estimated $15 billion on fantasy sports, according to the Fantasy Sports Trade Assn. ESPN last month inked a pact with DraftKings, a FanDuel competitor, under which DraftKings will be its exclusive daily-fantasy sports partner.
FanDuel said it will use the latest financing to grow its U.S. user base; speed up rollout of new products, features and new business projects; and fill out its management team.
“Having partners like KKR, Google Capital and Time Warner/Turner Sports invest in FanDuel underscores the way this company is transforming sports entertainment,” Nigel Eccles, the company’s CEO and co-founder, said in announcing the round.
Investment bank Mesa Global, recently acquired by Houlihan Lokey, advised FanDuel in the transaction.
FanDuel, based in New York City, was founded in 2009. The company offers multiple single-day game contests for the NFL, NBA, MLB, NHL, and college football and basketball teams.