Underdog Fantasy, the fast-growing fantasy sports and sports betting platform based in Brooklyn, has raised $70 million in a highly anticipated Series C funding round. With this new injection of capital, the company now boasts a valuation of $1.23 billion. Spark Capital led the funding, with participation from several existing and new investors.
Founded in 2020, Underdog has grown rapidly by focusing on proprietary technology and user-centric game experiences. The platform now serves nearly four million users across the United States. This latest funding round marks a major leap from its previous Series B valuation in 2022, nearly tripling its worth in under three years.
Strategic Growth Backed by Big Investors
Spark Capital led this round with a strong belief in Underdog’s product-driven approach. The venture firm emphasized the company’s commitment to delivering innovative, intuitive gaming experiences. Other prominent investors—including Mark Cuban, Kevin Durant, BlackRock, and Harris Blitzer Sports Entertainment—have shown continued confidence in Underdog’s market position and leadership team.
The company’s strategy focuses on full in-house development of its games and systems. By avoiding third-party platforms, Underdog maintains full control over its features, security, and user interface. This flexibility enables rapid development, better customer retention, and deep personalization in game design.
Focus on Product Innovation
Underdog’s product development team has consistently launched fresh and engaging offerings for sports fans. The platform combines fantasy sports with real-money gaming elements in ways that feel accessible and dynamic to casual and serious fans alike. Its user interface and smooth gameplay have contributed to high engagement rates and strong word-of-mouth growth.
The new capital will support the rollout of even more personalized features, game variations, and expanded sports coverage. The team will also strengthen the backend infrastructure to scale with growing demand. Underdog plans to aggressively hire product designers, engineers, and data scientists to push innovation even further.
Sports Betting Expansion in Full Swing
Underdog launched its first sportsbook in North Carolina earlier this year and aims to expand operations into Missouri and several other states. With a strong legal and compliance team, the company continues to gain regulatory approvals in various jurisdictions. Recently, it received clearance to operate Pick’em Champions, a new type of fantasy contest, in New Jersey and Delaware.
Unlike many competitors that depend on licensing sportsbook software from third parties, Underdog has built its own betting systems. This end-to-end control gives the company a competitive edge in customizing odds, setting unique bet formats, and integrating betting with fantasy sports experiences.
Unique Market Position
Underdog’s combination of fantasy sports and betting creates a unique hybrid model that attracts a wide audience. Traditional fantasy players enjoy season-long leagues and daily contests, while bettors engage with real-time wagering and game-specific propositions. This blend of offerings gives Underdog a broad user base and multiple revenue streams.
By developing proprietary tech, the company avoids the scalability issues that plague other platforms. It can experiment with gamification, loyalty programs, and influencer partnerships in ways that stand out in a crowded space.
Financial Performance and Traction
Underdog has delivered consistent user growth, strong engagement metrics, and increasing revenue. The platform ranks among the most downloaded sports apps in the U.S., regularly appearing in the top charts during NFL and NBA seasons.
Revenue from fantasy contests and in-app purchases continues to rise. Repeat participation rates remain high, driven by a tight-knit community and streamlined user interface. The company expects to surpass its previous year’s revenue by a wide margin with the ongoing sports calendar and planned state expansions.
Plans for Future Growth
Leadership at Underdog has outlined a clear roadmap for the next 18 months. The team plans to:
- Launch sportsbooks in five new states
- Enhance mobile gaming experiences with more live features
- Develop original content and branded media partnerships
- Introduce new fantasy formats for baseball, hockey, and global sports
- Create AI-powered tools for personalized picks and recommendations
To support these efforts, the company will grow its headcount significantly. The product and marketing divisions will expand first, followed by customer support and analytics teams. The leadership team remains focused on building a long-term sustainable company, not just chasing short-term metrics.
Industry Impact
Underdog’s rise reflects a broader shift in the sports entertainment industry. Fans now demand more interactive and rewarding ways to engage with their favorite teams and athletes. Fantasy sports and real-money betting have filled that gap, and Underdog stands at the forefront of that movement.
Traditional operators continue to rely on outdated interfaces and licensed platforms, but Underdog offers a mobile-first, user-friendly alternative. Competitors now face pressure to innovate or lose market share to tech-driven upstarts like Underdog.
At the same time, venture capital interest in sports and gaming startups has surged. Investors now view fantasy and betting as high-growth verticals with long-term potential, especially with favorable regulatory trends across U.S. states. Underdog’s successful raise confirms that institutional investors see sustainable business models in this space.
Leadership and Company Culture
Founder and CEO Jeremy Levine has led the company with a focus on culture, innovation, and customer experience. His background in gaming and tech gives him deep insight into what users want. Under his leadership, the company has avoided the hyper-growth pitfalls that have tripped up competitors.
The internal culture emphasizes transparency, speed, and cross-functional collaboration. Team members work closely across design, data, and engineering to bring new ideas to life. Leadership fosters an environment where experimentation is encouraged and user feedback drives priorities.
Conclusion
Underdog Fantasy has secured its position as a market leader in the fantasy and sports betting space by raising $70 million in Series C funding. With a fresh valuation of $1.23 billion, the company enters a new phase of growth with a strong product lineup, strategic state expansions, and a bold vision.
The investment from Spark Capital and other high-profile backers signals strong belief in the company’s trajectory. With proprietary technology, a growing user base, and relentless innovation, Underdog looks ready to dominate the sports gaming industry in the years ahead.
