Fantasy sports service DraftKings has raised a new $41 million round of funding, the company announced today.
DraftKings enables people to participate in daily fantasy sports competitions where they can win real cash prizes that range in value from pocket change to $1 million. The service offers fantasy competitions that primarily focus on baseball, football, basketball, and hockey. Fantasy sports (football in particular) has proven to be pretty big business, and it even attracted the attention of Microsoft via its efforts surrounding NFL content, as VentureBeat previously pointed out.
In addition to the funding news, DraftKings also announced that it’s acquiring rival service StarStreet for an undisclosed amount. This marks the second major acquisition for DraftKings, as the startup purchased then major competitor DraftStreet just last month.
DraftKings said it plans to use the new capital to further expand the service. The round itself was led by The Raine Group, with participation from existing investors Redpoint Ventures, GGV Capital, and Atlas Venture.