US-headquartered daily fantasy sports operator DraftKings has helped launch the $60m first fund for the corporate venture capital firm it sponsors, Drive by DraftKings.
DraftKings runs an online platform where users can compete against each other in weekly contests where the aim is to pick the best line up for a single round of fixtures, in sports such as football, basketball, American football or golf.
The Kraft Group, the diversified holding group that owns American football franchise the New England Patriots, is among the firm’s limited partners, as are DraftKings and live event promoters Madison Square Garden Sports and Madison Square Garden Entertainment.
The LPs also include the Jones family, which own the Dallas Cowboys; Todd Boehly, CEO of investment firm Eldridge; Mike Gordon, president of sports team owner Fenway Sports Group; and several professional athletes. The oversubscribed fund initially had a $50m target for its close.
Drive by DraftKings targets investments in entertainment and sports technology and has built a portfolio of 13 companies including video advertising software developer VidMob and mobile game developer Toya.
Meredith McPherron, managing partner and DEO of Drive by DraftKings, said: “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.
“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.”
