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Games company in growth mode

FanDuel raises £176.5m in latest expansion move

Nigel EcclesFantasy sports firm FanDuel, based in Edinburgh’s Quartermile, has raised $275 million (£176.5m) from a consortium of investors including private equity firm KKR, Google Capital and Time Warner Investments.

The technology firm, whose client base is almost entirely in North America, will use the new finance to build customers and develop new products. This latest funding brings total funding raised to $363m and confirms its stats as a $1 billion ‘unicorn’ company.

Existing investors Shamrock Capital, NBC Sports Ventures, Comcast Ventures, Bullpen Capital, Pentech Ventures and Piton Capital also participated in the latest round.  Paid active users have grown 300% from the same period last year.

Co-founder Nigel Eccles 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 game-changer for the sports industry.”

Ted Oberwager of 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.”

FanDuel recently hired an experienced team of more than 40 developers based in Orlando, Florida focused exclusively on sports and mobile gaming.

Mesa Global, which was recently acquired by Houlihan Lokey served as FanDuel’s investment banker.

The company, which sponsored Floyd Mayweather in the “Fight of the Century”, is expanding in Scotland and is leasing 8,450 sq ft on the fifth floor of the West Regent Street office building in Glasgow centre.

The company has 230 staff split between the UK and the US, including 40 new recruits in Orlando following a recent acquisition, and 83 in Edinburgh. It announced plans to open a Glasgow office at the turn of the year.
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