DraftKings-backed venture capital fund nets $60m investment
US sports stars and sports industry heavyweights join newly created all-star network of financiers
Drive by DraftKings, a multi-stage venture capital firm backed by DraftKings, has concluded its first fundraising exercise, netting a cool $60m from investors in just six months.
The fund, which was oversubscribed by 20%, attracted support from US investors including The Kraft Group, Madison Square Garden, Arctos Sports Partners, and Fenway Sports Group’s Mike Gordon, as well as the Jones family, which owns the Dallas Cowboys.
DraftKings and prominent DK stockholder and Los Angeles Lakers owner Todd Boehly are also among the fund’s main partners, although the terms of investment from each investor has not been disclosed by Drive.
Drive by DraftKings seeks to invest in sports technology and entertainment companies which are “advancing the future of play and performance” through strategic and financial support.
Central to this strategy are four main themes: human performance, sports and gaming, media and fan engagement, and data analytics and monetization.
To supplement its investment strategy, Drive by DraftKings has instituted an all-star network to provide advice on potential investments.
Network members include Arctos Sports Partners executive Theo Epstein, Boston Red Sox president and CEO Sam Kennedy and Sacramento Kings co-owner and NRG Esports founder Andy Miller.
The network also counts three-time Olympic ice hockey medalist Hilary Knight, 11-time NFL Pro Bowl wide receiver Larry Fitzgerald, and retired professional tennis player James Blake among its membership.
Most all-star network members are also invested in Drive by DraftKings’ first venture fund.
Drive by DraftKings CEO and managing partner Meredith McPherron said she was both “proud and excited” to have attracted such high-profile investors to the fund.
“Not only do they embrace our vision to facilitate growth and innovation in sports tech and entertainment, they also provided the capital to join our mission,” McPherron explained.
“Through our relationship with DraftKings, as well as other iconic brands in sports and gaming via our limited partners and advisors, we are well positioned to accelerate the most ambitious new ventures at the frontier of these industries,” she added.
The current Drive by DraftKings portfolio includes Cardless, Elite HRV, Evaluate.Market, Guidesly, Just Women’s Sports, Muxy, Papaya Gaming, PickUp, StreamLayer, Tappp, Toya, VidMob, and WHOOP.