Fantasy sports startup raises $24 million in funding

US-based DraftKings, a fantasy sports startup, has raised $24 million in Series B funding which it plans on using for hiring new staff, the development of strategic partnerships and marketing and acquisitions.

According to Forbes, the Series B round of funding was led by Redpoint Ventures, with participation by GGV Capital, BDS Ventures and Atlas Venture, and follows a previous round that closed on $10 million.

The company has raised a total of $35 million, including the $1.4 million in seed capital, since it was founded less than two years ago.

“DraftKings has had an amazing year but we are even more excited about what the future holds,” said Jason Robins, chief executive officer of DraftKings.  ”Going forward, we will continue to prioritize customer experience, leveraging both our online and mobile platforms.  Mobile, in particular, will be an area of focus for us in 2014.  Redpoint and GGV both have deep experience in mobile gaming, which we found really attractive in a capital partner.”

DraftKings said its user base spends more than five hours a week on its mobile app and website, that 75 percent of its customers in 2012 remained active during 2013 and its customer base has tripled since the end of August 2013 revealing a year-on-year growth of 10 x.

“One of the most exciting aspects of venture investing is when we see a company that plays a role in creating a consumer phenomenon. DraftKings is just that sort of company,” said Tom Dyal, Partner at Redpoint Ventures. “DraftKings’ innovative approach to coupling a clear monetization model with a huge, engaged fantasy sports audience captured our attention. The DraftKings’ team’s execution and focus made investing in them even more attractive to us. We’re thrilled to be investors as the company enters the next stage of growth.”

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