Los Angeles-based daily fantasy sports platform AlphaDraft has raised $5 million in funding. Metamorphic Ventures led the round with participation from WME, Upfront Ventures, IDG Ventures, Amplify.LA, KEC Ventures, Freestyle Capital, Gokul Rajaram, SK Ventures, Basset Investment Group, Greycroft Partners, Melo7 Tech Partners and former NBA Commissioner David Stern.
Los Angeles, California (May 19, 2015) – AlphaDraft – the premier daily fantasy sports platform that seamlessly blends the highly popular worlds of eSports, live streaming and fantasy sports contests – is pleased to announce it has successfully closed its (US) $5 million institutional round.
“We are thrilled to have the confidence of such an amazing assortment of financial backers, with extensive backgrounds in fueling the dramatic growth of entertainment and sports-related ventures,” said AlphaDraft’s CEO, Todd Peterson. “AlphaDraft offers a natural extension of the eSports viewing-only experience for fans. Drawing on their intimate knowledge of the games, the pro athletes, and the teams participating, members of the eSports fan community can deepen their involvement through AlphaDraft and actively compete for bragging rights and real-world cash and prizes.”
AlphaDraft will pay out at least (US) $5 million in cash and prizes in its first year, aiming to have over 1 million active users by the end of 2015. In addition to fantasy draft payouts and prize pools, the funding will be used for user acquisition, to significantly grow the eSports fantasy draft community, and to execute several key strategic partnerships.
AlphaDraft will also expand its support to five major eSports titles by June 1, 2015. In addition to Riot’s League of Legends , AlphaDraft will offer daily and weekly fantasy draft competitions around ten major eSports professional leagues for Counter-Strike: Global Offensive , Dota 2 , SMITE and one additional, soon to be announced, leading eSports title.
Metamorphic Ventures led funding, with additional investment by the following parties: WME, Upfront Ventures, IDG Ventures, Amplify.LA, KEC Ventures, Freestyle Capital, Gokul Rajaram, SK Ventures, Basset Investment Group, Greycroft Partners, Melo7 Tech Partners and former NBA
Commissioner David Stern.
“There is a current fundamental shift in media consumption and entertainment, captured by eSports. eSports now reach millions through live streaming and broadcasts on Twitch, YouTube and ESPN; eSports events nearly instantly sell out major arenas like the Staples Center and Madison Square Garden; and eSports dominate conversations across all major social media platforms. Simply put, eSports are growing at a pace that will soon put them on par with
traditional sports,” said Metamorphic Venture’s Managing Partner, David L. Hirsch. “AlphaDraft offers fans a new way of more deeply engaging with players, teams and publishers, as eSports fantasy gaming emerges as a massive untapped opportunity in this new, rapidly-growing hybrid category.”
eSports are predicted to generate in excess of (US) $500 million in revenue by 2017; fantasy sports currently generate over (US) $3.6 billion annually. Launched earlier this year, AlphaDraft is enjoying tremendous growth and success, with over 1 million entries to date in its daily and weekly contests. The most successful AlphaDraft community member has won (US) $30,488 in
“As one of the most active venture capital firms in video gaming, we are excited to back AlphaDraft, as it seamlessly combines three highly popular and explosive growth areas: eSports, live streaming and daily fantasy sports,” added Philip Sanderson, Managing Director of IDG Ventures.
To learn the basics on how to draft a fantasy team on AlphaDraft.com ( League of Legends specific example), please view the following explainer video: http://bit.ly/1FuD2bW [YouTube]
A full press kit with downloadable assets can be found here: http://bit.ly/1ETr7Oc
For any additional questions about AlphaDraft or to schedule an interview with AlphaDraft’s executive team, please contact Mario R. Kroll at [email protected]
Founded in 2014, AlphaDraft – which has been called “Gaming’s DraftKings” – is the premier online platform that seamlessly blends the highly popular worlds of eSports, live streaming and fantasy sports, with daily and weekly contests for cash and other real-world prizes. Members draft a new team every day without season-long commitments, and play against friends and other fans without having to create their own fantasy leagues. There is no purchase necessary to register, and AlphaDraft offers both free and paid contests. For more information, please visit www.AlphaDraft.com or follow us on Twitter at @AlphaDraft .