Underdog Raises $70M in Series C, Eyes $100M Total
Underdog nabbed $70 million in a Series C funding round led by Spark Capital This chunk is just the start, with the round potentially topping $100 million.
Funding Details and Valuation Jump
The cash pegs Underdog’s valuation at $1.23 billion—nearly triple what it was three years ago. The company called it the biggest bet on sports gaming by a Silicon Valley venture capital firm yet. CEO Jeremy Levine said the funds will fuel product upgrades and new hires to keep the momentum rolling.
The timing’s notable. In 2024, Underdog launched its first sportsbook in North Carolina, with Missouri next on deck for 2025. But it hit a snag in New York, pulling fantasy products after a $17.5 million settlement with the state gaming commission over license violations. The $70 million gives Underdog room to push forward, leaning hard into its tech and growth plans.
Growth Strategy and Market Moves
Underdog’s got a clear playbook. Most of the cash will boost its product lineup, aiming to hook U.S. sports fans with fresh gaming options.
Levine stressed speed, saying, “There’s so much to build, and we’re going all in.” Spark’s Will Reed praised their “relentless focus” on user experience, while Acies Investment’s Chris Grove flagged their edge in innovation. The company’s homegrown tech, a rarity among top operators, drives what Levine calls “fun, accessible” products.
Talent’s another priority. Underdog plans to bulk up its team, though no headcount targets were shared. On the expansion front, it’s already big in fantasy pick’em across multiple states and now wants a slice of the sportsbook pie, starting with North Carolina and eyeing Missouri post its December 2025 betting launch. In states like New Jersey and Delaware, it’s tweaked pick’em to a peer-to-peer model to fit local rules.
Brand Power and Ambitions
Underdog’s not starting small. With nearly 4 million users nationwide, it ranks as the fourth most-downloaded sports gaming app in the U.S., per 2024 app store data
. Shows like “Gil’s Arena” keep fans engaged, building a solid base. Levine’s blunt about goals: “We’re not here for third place.” That’s a shot across the bow at giants like DraftKings and FanDuel, who pulled $11 billion in U.S. betting revenue in 2024, per AGA stats.
The $70 million haul, with more possibly coming, backs that swagger. From a $485 million valuation in 2022 to $1.23 billion now, Underdog’s growth tracks the sports betting boom.
The New York hiccup stung, but Levine’s betting on tech and talent to handle the climb. Whether it hits that $100 million round cap, this cash sets Underdog up to chase the top dogs in 2025.
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