Brooklyn-based Underdog, a fantasy sports and sports betting app, raised $70M in a first Series C tranche at a $1.23B valuation from Spark Capital
I'm incredibly excited to be part of this team — not just because of the headline … Jeremy Levine : Very excited to welcome Spark Capital to team Underdog! Bria Elly : Underdog is growing...like a lot. And we have no plans of stopping 🚀 — “Underdog, a Brooklyn-based fantasy sports and sports betting app … Samuel Baker : Big day over here at Underdog! Hats off to everyone at UD for making this possible, building a great product, and running a thriving business. … Daniel Bay : big milestone for Underdog, but still so much more to do 🚀 🚀 🚀 — “We're going to continue to invest in people and product — and as fast as we can. … Minh Pham : WHOA! — We just raised Series C funding (led by Spark Capital) at a $1.225B valuation, and the momentum is only building. …
Context & Ripple Effects
Underdog’s new round follows its 2022 $35 million Series B at a $485 million valuation, marking a substantial step-up in both financing and private-market valuation. Spark Capital now leads the first tranche of the company’s Series C.
The deal places Underdog among fantasy-sports businesses able to attract late-stage venture backing, echoing the earlier billion-dollar financing benchmark set by FanDuel’s KKR-led round.
First-order effects
- Underdog receives $70 million of new capital and a $1.23 billion valuation benchmark as it begins its Series C, while Spark Capital becomes the lead investor in the tranche.
- The higher valuation materially resets Underdog’s fundraising position relative to its 2022 round.
Second-order effects
- The financing raises the competitive bar for other fantasy-sports and sports-betting apps seeking growth capital: investors now have a fresh late-stage valuation reference for a scaled independent player.
- Underdog gains greater capacity to compete for product investment and customer acquisition against better-funded incumbents, though the article does not specify how the proceeds will be used.
Third-order effects
- If comparable rounds continue, the sector may increasingly separate into a small set of heavily capitalized platforms and smaller operators with fewer financing options.
- The round suggests that private investors still see room for standalone sports-engagement products alongside established market leaders, but sustained valuations will depend on companies converting funding into durable operating scale.
The trend: Late-stage venture capital is concentrating behind independent sports-engagement platforms that can demonstrate enough scale to challenge incumbent fantasy and betting brands.