Drive by DraftKings Launches $60M Venture Capital Fund

Drive by DraftKings

Drive by DraftKings, a Boston, MA-based multi-stage venture capital firm investing in sports tech and entertainment companies, raised its first venture fund of $60m.

Raised in six months, the fund was subscribed by investors including: The Kraft Group (New England Patriots), Jones family (Dallas Cowboys), DraftKings Inc. (NASDAQ: DKNG), Todd Boehly (Los Angeles Dodgers, Los Angeles Lakers, Los Angeles Sparks), Madison Square Garden Sports Corp., Madison Square Garden Entertainment Corp., Arctos Sports Partners, and Mike Gordon (Fenway Sports Group).

Led by Meredith McPherron, CEO and Managing Partner, Drive by DraftKings supports entrepreneurs advancing the future of play and performance. The firm has identified four investment themes across the industry:

  • human performance,
  • sports and gaming,
  • media and fan engagement, and
  • data analytics and monetization.

Current portfolio includes: Cardless, Elite HRV, Evaluate.Market, Guidesly, Just Women’s Sports, Muxy, Papaya Gaming, PickUp, StreamLayer, Tappp, Toya, VidMob, and WHOOP.

A newly created All-Star Network is designed to support the firm’s investment strategy. Members include:

  • three-time Olympic ice hockey medalist Hilary Knight,
  • 11-time NFL Pro Bowl wide receiver Larry Fitzgerald,
  • retired professional tennis player James Blake, 
  • Theo Epstein (MLB and Arctos Sports Partners Executive), 
  • Sam Kennedy (Boston Red Sox President and CEO), 
  • Andy Miller (Sacramento Kings Co-Owner and NRG Esports Founder/CEO),
  • Sanyin Siang (Executive Director of the Fuqua/Coach K Center on Leadership & Ethics at Duke University), 
  • Julie Uhrman (Angel City FC Co-Founder and President), and
  • YouTube gamer Elliott Watkins.

Most All-Star Network members are also invested in Drive by DraftKings’ first venture fund.

According to MarketsandMarkets, the global sports technology market (including devices, smart stadiums, sports analytics and esports) was valued at $17.9 billion in 2020 with some experts forecasting it to eclipse $40 billion by 2026. According to a Zion Market Research study, the global sports betting market (including retail and online) was estimated at $131.1 billion in 2020 and is expected to grow to $180 billion by 2028. According to Newzoo’s Global Games Market Report, the global online games market (which includes PC, console, mobile and tablet games) is expected to generate $175.8 billion of revenue in 2021 and to exceed $200 billion in 2023.