Curious about who’s behind the popular fantasy sports platform?
Underdog Fantasy was founded in 2020 by Brandon Stakenborg in Brooklyn, New York. Since its launch, the company has grown into a significant player in the daily fantasy sports market.
Underdog Fantasy has attracted investment from numerous high-profile backers, including BlackRock, Acies Investments, and Corner Ventures. The company also has angel investors like Kevin Carter and four others who believed in the platform’s potential early on.
The ownership structure reflects a blend of founding vision and strategic investment, positioning Underdog Fantasy as a competitive force in the online fantasy sports industry. The platform continues to expand its offerings and user base as it navigates the growing market for digital sports entertainment.
Key Takeaways
- Underdog Fantasy was established in 2020 by Brandon Stakenborg and has quickly become a recognized name in online daily fantasy sports.
- The company has secured backing from 15 institutional investors including major firms like BlackRock and Corner Ventures.
- Underdog Fantasy operates legally in several U.S. states, positioning it for continued growth in the competitive fantasy sports market.
The Origins of Underdog Fantasy
Underdog Fantasy was born from a vision to create something unique in the fantasy sports landscape. The platform quickly gained popularity by offering innovative games and an appealing user experience.
Founding and Mission
Underdog Fantasy burst onto the scene in 2020 when three ambitious founders launched the platform. Jeremy Levine was one of these key founders who helped establish the company. The team had a clear mission from the start – to build more than just another betting site.
They wanted to create a place where sports fans could enjoy fantasy games in a fresh, engaging way. The platform focused on daily fantasy sports with a user-friendly approach.
Underdog set itself apart by offering simple yet exciting game formats that appealed to both casual and serious players. Their Best Ball tournaments became particularly popular, allowing players to draft teams without the weekly lineup management of traditional fantasy sports.
Jeremy Levine’s Vision
Jeremy Levine, the founder and Co-CEO of Underdog Fantasy, brought significant experience to the table. Before Underdog, he had already made his mark in the fantasy sports world with previous ventures.
Levine envisioned Underdog as more than just a gambling platform. He wanted to create an entertainment product that combines the excitement of sports with friendly competition.
His approach focused on making fantasy sports more accessible and enjoyable for everyone. The Best Ball format, which Underdog became known for, perfectly aligned with this vision by removing the hassle of weekly lineup decisions.
Levine’s strategy paid off as Underdog quickly grew to become a major player in the fantasy sports industry. The platform continues to expand its offerings while staying true to its original vision of creating fun, engaging games for sports fans.
The Underdog Fantasy Experience
Underdog Fantasy offers sports fans a fresh take on fantasy sports with user-friendly games and a modern interface. The platform has grown rapidly since its 2020 launch, creating a unique experience for sports enthusiasts.
Game Offerings
Underdog Fantasy specializes in daily fantasy sports contests that are legal in several U.S. states. Their flagship product is the NFL Best Ball Tournament, which has become extremely popular among football fans.
In Best Ball formats, players draft their lineups and then don’t need to make weekly adjustments – the system automatically counts your highest-scoring players each week. This “set it and forget it” approach appeals to casual and serious players alike.
Beyond football, Underdog offers fantasy contests across multiple sports with various entry fee levels. They’ve designed games that are easy to understand but still provide depth for experienced players.
The platform continues to innovate with new game types that bridge the gap between traditional fantasy sports and sports betting markets.
User Interface and Customer Experience
Underdog’s mobile app and website feature a clean, intuitive design that makes drafting teams and tracking results simple. The sleek interface uses bold colors and clear graphics to help users quickly understand their contests and standings.
New users appreciate the straightforward onboarding process and how easily they can join their first contest. The platform offers:
- Quick deposit options
- Easy-to-understand game rules
- Real-time scoring updates
- Smooth withdrawal process
Customer support is responsive and helpful, addressing user concerns promptly through multiple channels. The company has built a reputation for transparency regarding contest rules and payouts.
The social aspects of the platform let friends compete against each other, adding another layer of enjoyment to the fantasy sports experience.
Legal and Licensing
Underdog Fantasy operates in a highly regulated industry where proper licensing and compliance are essential. The company has secured necessary permissions to offer its fantasy sports contests legally while navigating the complex landscape of sports betting regulations.
Regulations and Compliance
Underdog Fantasy maintains all required licenses and governmental permissions to offer its contests legally. According to their official website, they hold “licenses and permits for fantasy contests in every jurisdiction where they operate,” ensuring full compliance with local laws.
The company takes regulatory compliance seriously. When users sign up, Underdog may request additional information to meet their obligations under state and federal law.
This careful approach to regulations helps protect both the company and its users. Fantasy sports operators must navigate different rules across states, as paid fantasy sports have specific legal requirements that vary by location.
Users can review Underdog’s detailed compliance information in their Terms of Use, which outlines their regulatory obligations.
Licensed Sports Betting Market
Underdog Sports LLC has positioned itself within the growing licensed sports betting market. The company has attracted notable investors, including Mark Cuban (Dallas Mavericks owner) and NBA stars, bringing legitimacy to their platform.
New York (NY) represents one of the key markets for licensed sports betting and paid fantasy sports operations. States like NY have established regulatory frameworks that companies must follow to operate legally.
Some controversy has surrounded Underdog’s operations. Bloomberg Law reported that the company has faced accusations of running unlicensed bets through its app.
As the paid fantasy sports industry grows, companies like Underdog must carefully balance innovation with strict adherence to evolving regulations in each state they serve.
Partnerships and Sponsorships
Underdog Fantasy has built an impressive network of partnerships that extend across sports leagues, media outlets, and influential personalities. These strategic relationships have helped the fantasy sports platform grow its user base and brand recognition.
Sports Gaming and Media Companies
Underdog Fantasy has secured several high-profile partnerships with sports leagues. Most notably, the company became the exclusive fantasy sports partner of the United Football League (UFL), a spring football league. This partnership was announced just before the UFL Conference Final games.
The deal with the UFL positions Underdog Fantasy as the go-to platform for fans wanting to engage with the league through fantasy sports. This arrangement continued through the UFL Championship on June 16.
Underdog has also formed relationships with sports media outlets. The company sponsored Football Outsiders’ premium content, including offseason analysis of NFL prospects and weekly editorials and podcasts.
Influencers and Sports Figures
Underdog Fantasy has leveraged relationships with celebrities and sports figures to boost its profile. The company extended its partnership with hip-hop artists Cam’ron and Ma$e for their sports program “It Is What It Is.”
This collaboration helps Underdog reach new audiences through the cultural influence of these well-known artists. Their sports talk show has a dedicated following that overlaps with potential fantasy sports players.
The company also counts several high-profile investors among its supporters. NBA star Kevin Durant and entrepreneur Mark Cuban have backed Underdog Fantasy financially. Their involvement adds credibility to the platform and helps attract both users and additional investors.
Underdog Fantasy’s Market Impact
Underdog Fantasy has disrupted the daily fantasy sports industry with its innovative approach and rapid growth. The company has carved out a significant market position despite facing established competitors.
Player vs. Industry Giants
Underdog Fantasy operates in a challenging market dominated by DraftKings and FanDuel, yet has managed to thrive. Founded by Jeremy Levine, the company has become one of the fastest-growing sports gaming businesses in the US.
What makes Underdog stand out is its focus on simplified game formats and user experience. Unlike the giants who offer complex betting options, Underdog emphasizes straightforward pick’em contests and draft tournaments.
The company has attracted significant investment backing, including a $35 million Series B funding round that included BlackRock and The Chainsmokers. This financial support has enabled Underdog to expand operations while competing against much larger corporations.
Underdog’s profitability achievements are particularly notable, with reports indicating the business became profitable within just a few years of launching.
Customer Acquisition and Retention
Underdog Fantasy has implemented several strategies to attract and keep users. The company offers appealing sign-up bonuses and tournament prize pools that compete with larger platforms.
Their marketing approach focuses on social media engagement and partnerships with sports influencers. This strategy helps them reach younger demographics who might feel intimidated by traditional sports betting platforms.
The company has seen revenue growth of more than 10x in a single year, indicating successful customer acquisition efforts. Their user-friendly interface and mobile-first approach contribute to strong retention rates.
Underdog’s customer loyalty programs reward consistent players with perks and exclusive tournaments. This creates a community feeling that larger platforms sometimes struggle to maintain.
The company has also expanded their product offerings strategically, introducing new game formats that keep existing customers engaged while attracting new players to the platform.
Financial Milestones
Underdog Fantasy has achieved remarkable financial success since its founding. The company has secured significant funding from major investors and experienced substantial growth in valuation over a relatively short period.
Funding Rounds and Investors
Underdog Fantasy has raised an impressive $95.9 million in total funding to date. Their investment roster includes some big names in finance and entertainment. BlackRock, one of the world’s largest asset managers, participated in their Series B funding round.
Acies Investment also joined the Series B round, helping to strengthen Underdog’s financial position. The company’s appeal extends to celebrity investors too.
Sports stars and entertainers like Mark Cuban, Kevin Durant, Trae Young, and Odell Beckham Jr. have all put their money behind the fantasy sports platform. Meanwhile, tech investor Kevin Carter led an early $10 million round, showing confidence in the company’s future.
Valuation and Growth
Underdog Fantasy has seen its valuation climb dramatically as its popularity has grown. During their Series B funding round, the company secured $35 million which valued the company at a significant $485 million.
This valuation represents impressive growth for a relatively young company in the competitive fantasy sports market. The CEO’s leadership has received recognition, being honored by Goldman Sachs for entrepreneurship for two years running.
Underdog Fantasy now counts 15 institutional investors among its backers, including major players like BlackRock and Corner Ventures. This diverse backing provides both capital and strategic advantages as they compete in the fantasy sports industry.
Future Outlook and Developments
Underdog Fantasy’s future appears bright with plans for growth and innovation under Jeremy Levine’s leadership. The company seems positioned to expand its offerings while continuing to develop its technology platform.
Expansion and New Markets
Underdog Fantasy is actively pursuing expansion opportunities after securing significant funding. With a valuation of $485 million following its Series B funding round, the company has substantial resources to enter new markets.
The fantasy sports platform is strengthening its media presence through partnerships like its renewed deal with Ma$e and Cam’ron as hosts of the “It Is What It Is” sports show. This media strategy could help Underdog reach new audiences.
Hiring has become a key focus, with the company bringing in talent from established operators in the industry. These new employees are expected to help guide Underdog’s growth into additional sports markets beyond its current offerings.
Tech and Product Innovations
Underdog Fantasy continues to enhance its platform with user-friendly features and engaging gameplay options. The company has been investing in technology that makes fantasy sports more accessible to casual fans while still appealing to dedicated players.
Recent updates have focused on:
- Improved mobile experiences
- Faster payouts for winners
- New fantasy contest formats
As one of the major players in fantasy sports, Underdog is likely developing innovations that will help it compete with larger gambling and fantasy platforms. The company appears committed to creating products that go beyond traditional fantasy sports.
Jeremy Levine has emphasized that Underdog is about more than just betting or fantasy participation, suggesting future products may expand into new forms of sports engagement and entertainment.
The People Behind Underdog Fantasy
Underdog Fantasy was established in 2020 and has quickly grown to become a significant player in daily fantasy sports. The company’s success stems from its leadership team and the notable investors who have backed its vision.
Executive Team and Advisors
Jeremy Levine serves as the founder and CEO of Underdog Fantasy. At 38 years old, Levine brings tremendous energy and entrepreneurial experience to the company. This isn’t his first venture in fantasy sports – he previously founded Draft, showing his deep expertise in the industry.
Brandon Stakenborg and Trevor John are also among the founding members who helped launch the platform. Their combined tech and gaming experience has been crucial to the company’s rapid growth.
Mark Pincus, the founder of Zynga, brings valuable gaming industry experience to Underdog as an advisor. His knowledge of user engagement and monetization has helped shape the platform’s strategy.
Mitch Garber and Breon Corcoran also provide strategic guidance, leveraging their extensive experience in online gaming and sports betting industries.
Celebrity and Athlete Investors
Underdog Fantasy has attracted an impressive roster of celebrity investors who see potential in the fantasy sports platform. This group includes well-known musicians like Steve Aoki, Nas, The Chainsmokers, and Kygo.
These artists haven’t just contributed financially – they’ve helped increase the platform’s visibility among their fan bases. Their involvement signals confidence in Underdog’s business model and future prospects.
Investment firms like LionTree Partners and SV Angel have also backed Underdog Fantasy. These professional investors provide not just capital but also strategic connections and business development support.
The combination of entertainment figures and professional investment firms creates a diverse ownership structure. This mix of perspectives has helped Underdog differentiate itself in the competitive fantasy sports market while navigating industry challenges.
Underdog Fantasy in Popular Culture
Underdog Fantasy has grown beyond just a gaming platform, becoming a notable part of sports pop culture. The company’s rise reflects the growing popularity of daily fantasy sports in mainstream entertainment.
Popular sports influencers have embraced Underdog Fantasy. Figures like Jared Carrabis have formed partnerships with the platform. Carrabis, a well-known baseball analyst, has helped bring Underdog to baseball fans through his social media presence and content.
The phrase “IT IS WHAT IT IS” has become something of an unofficial motto among fantasy sports players. This phrase often appears in Underdog Fantasy community discussions when players face surprising results.
Celebrity involvement has boosted Underdog’s cultural relevance. While not officially connected to the platform, entertainers like Ma$e have helped popularize fantasy sports in general through mentions in media appearances.
Sports journalists like Kevin Carter have discussed Underdog Fantasy in their coverage. Their analysis often highlights how Underdog differs from traditional fantasy sports platforms.
Underdog has cultivated a friendly, approachable brand image that resonates with casual sports fans. Their marketing typically features everyday fans rather than focusing solely on professional athletes.
Social media has been crucial to Underdog’s cultural impact. Snapback Sports and Jack Settleman have extended their partnership through 2027, further embedding Underdog in online sports culture.
