Drive by DraftKings Launches $60 Million Venture Fund to Invest in Sports Tech and Entertainment

Rhea-AI Summary

Drive by DraftKings has raised a $60 million venture fund, oversubscribed by 20%, to invest in sports tech and entertainment. Backed by prominent investors including The Kraft Group and Madison Square Garden Sports Corp., the fund was raised in just six months. CEO Meredith McPherron expressed excitement about the firm's capacity to drive growth and innovation in the industry. The fund's investment themes focus on human performance, sports and gaming, media engagement, and data monetization, amid a projected surge in the sports technology market valued at $17.9 billion in 2020.

Positive

• Raised $60 million in venture fund, oversubscribed by 20%.
• High-profile investors support the fund, enhancing credibility.
• Focus on high-growth areas: human performance, sports and gaming, media engagement, data analytics.

Negative

• None.

BOSTON, Oct. 21, 2021 /PRNewswire/ -- Drive by DraftKings, the multi-stage venture capital firm investing in sports tech and entertainment companies, has today announced that it has raised its first venture fund of $60 million, which is backed by high-profile owners, organizations, investors and athletes across the sports and entertainment industries.

Raised in just six months, the fund is oversubscribed by 20% with notable investors including: The Kraft Group (New England Patriots), Jones family (Dallas Cowboys), DraftKings Inc. (NASDAQ: DKNG), Todd Boehly (Los Angeles Dodgers, Los Angeles Lakers, Los Angeles Sparks), Madison Square Garden Sports Corp., Madison Square Garden Entertainment Corp., Arctos Sports Partners, and Mike Gordon (Fenway Sports Group).

"We are proud and excited to have assembled this roster of prominent investors. 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," said Meredith McPherron, Drive by DraftKings CEO and Managing Partner. "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."

Drive by DraftKings supports entrepreneurs advancing the future of play and performance. The firm has identified four investment themes across the industry: human performance, sports and gaming, media and fan engagement, and data analytics and monetization.

Drive by DraftKings' current portfolio includes: Cardless, Elite HRV, Evaluate.Market, Guidesly, Just Women's Sports, Muxy, Papaya Gaming, PickUp, StreamLayer, Tappp, Toya, VidMob, and WHOOP.

Drive by DraftKings' newly created All-Star Network is designed to support the firm's investment strategy. Among its decorated members are: three-time Olympic ice hockey medalist Hilary Knight, 11-time NFL Pro Bowl wide receiver Larry Fitzgerald, retired professional tennis player James Blake, Theo Epstein (MLB and Arctos Sports Partners Executive), Sam Kennedy (Boston Red Sox President and CEO), Andy Miller (Sacramento Kings Co-Owner and NRG Esports Founder/CEO), Sanyin Siang (Executive Director of the Fuqua/Coach K Center on Leadership & Ethics at Duke University), Julie Uhrman (Angel City FC Co-Founder and President), and YouTube gamer Elliott Watkins.

Most All-Star Network members are also invested in Drive by DraftKings' first venture fund.

"Technology is changing sports and entertainment so rapidly and if you aren't close to that change, you're falling behind," said Epstein. "I joined Drive by DraftKings' All-Star Network to be connected to the people shaping the future of the industry."

"On and off the ice, I do everything I can to help level the playing field and promote women's sports," said Knight. "Joining the All-Star Network is another way I can actively support the trailblazing entrepreneurs in our industry through their game-changing startups and technologies in sports tech."

According to MarketsandMarkets, the global sports technology market (including devices, smart stadiums, sports analytics and esports) was valued at $17.9 billion in 2020 with some experts forecasting it to eclipse $40 billion by 2026. According to a Zion Market Research study, the global sports betting market (including retail and online) was estimated at $131.1 billion in 2020 and is expected to grow to $180 billion by 2028. According to Newzoo's Global Games Market Report, the global online games market (which includes PC, console, mobile and tablet games) is expected to generate $175.8 billion of revenue in 2021 and to exceed $200 billion in 2023.

About Drive by DraftKings
Drive by DraftKings is a multi-stage venture capital firm that invests in sports tech and entertainment. Our founding partners include DraftKings, General Catalyst, Accomplice and Boston Seed Capital. Drive by DraftKings is unique among investment firms as a fully independent and highly strategic venture capital partner. Together with inspired founders pushing the frontier of new markets and categories, we will drive the future of sports, gaming and media.

Media Contact
Sabrina Carrozza
PR for Drive by DraftKings
Sabrina@sabrinalcpcomms.com 
+1 646 596-2853

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SOURCE DRIVE by DraftKings

FAQ

What is the purpose of the $60 million fund raised by Drive by DraftKings?

The fund aims to invest in sports tech and entertainment, focusing on growth and innovation.

Who are some of the notable investors in Drive by DraftKings' venture fund?

Notable investors include The Kraft Group, DraftKings Inc. (NASDAQ: DKNG), and Madison Square Garden Sports Corp.

When was the $60 million fund raised by Drive by DraftKings announced?

The fund was announced on October 21, 2021.

What are the projected growth figures for the global sports technology market?

The global sports technology market is projected to grow from $17.9 billion in 2020 to over $40 billion by 2026.

What investment themes does Drive by DraftKings focus on?

The firm focuses on human performance, sports and gaming, media engagement, and data analytics.