DraftKings Named a Forbes 2014 Hottest Startup
What do Uber, Jessia Alba’s The Honest Company, Airbnb and DraftKings have in common? They have all recently been named among Forbes’ hottest startups for 2014.
In order to compile the list, Forbes analyzed the companies that are attracting the biggest bucks from investors. Given that the Daily Fantasy Sports sector is in its infancy, it stands to reason that the space will see some tremendous growth. DraftKings caught everybody’s attention with their Series C funding back in August in which they raised $41 million and, in doing so, have increased their valuation by a staggering $150 million in 2014. This exciting news not only benefits DraftKings, but the entire DFS industry as a whole.
The announcement is a nice year-end cap on a very successful 2014 for the company, as earlier in the year the DraftKings team, led by CEO Jason Robins, acquired two of their top competitors. DraftStreet was acquired midsummer in a deal that shocked most DFS players. A couple of months later, DraftKings had acquired yet another competitor of theirs, StarStreet, in a deal that saw DK receive the player base from StarStreet while rival FanDuel acquired the highly visible Playboy Mansion contract. Nonetheless, the series of acquisitions and funding have led to DraftKings having a very successful fourth quarter in 2014, with record numbers this NFL season.
The growth of DK hasn’t been in the areas of acquisitions alone. DK was able to secure partnerships with the WSOP, the NHL and countless other major names that lend more credibility and visibility to their brand. The NHL contract was a first of its kind, as DK was named the Official Daily Fantasy Game of the NHL. The deal was struck shortly after DK announced its partnership with the New England Patriots, further propelling DFS into the minds of the casual sports fan.
Exponentially expanding on its existing fanbase, DraftKings has done a great job at pushing the envelope with adding more sports and types of games than any other provider out there. DraftKings bests its competitors in the number of different sports available for play: their offerings include golf, soccer and the newest kid on the block: MMA. These new sports prove that DK isn’t afraid to take risks in order to attract new customers to an ever-growing landscape that continues to flourish.
On the heels of this Forbes announcement, we as players can’t help but wonder what this means for the industry we devote so much time and attention to. For starters, the inclusion of DraftKings as one of the hottest startups is proof that major investors are not turning a blind eye to the rapid growth of the business. In fact, it would not be surprising in the least if this type of accolade leads to more investors itching to get a piece of the DFS pie.
Beyond the financial aspect, this highly deserved recognition further solidifies the legitimacy of an industry that has seen its fair share of critics in the national media. The addition of DraftKings to a list that includes a business luminary like Airbnb, coupled with the fact the company beat out some household names such as DropBox and Indiegogo, suggests DK is on the verge of attracting more customers, venture capitalists and overall attention as they head into the next stage of their growth.
Indeed, the future of the Daily Fantasy Sports industry is bright.