Morning Buzz

Drive by DraftKings gets $60M in funding

By Josh Liberatore

Drive by DraftKings, a venture capital firm that invests in companies in sports tech and entertainment, this morning announced its first venture fund of $60M, with commitments from some of the biggest names in sports. Investors in the fund include The Kraft Group, Jones family (Cowboys), Dodgers co-Owner Todd Boehly and Fenway Sports Group President Mike Gordon, along with MSG Sports and Arctos Sports Partners. The round was raised in six months and the fund is oversubscribed by 20%.

Additionally, Drive unveiled its new All-Star Network, a nine-person advisory group that includes MLB exec Theo Epstein, Red Sox President & CEO Sam Kennedy, NRG Esports CEO Andy Miller and NWSL Angel City co-Founder & President Julie Uhrman. They will support Drive’s investment strategy and potentially collaborate with chosen companies. Most All-Star Network members are also invested in Drive’s venture fund, and Drive CEO Meredith McPherron attributed the $60M haul in part to the existence of the new group. “I think it gives (investors) a lot of confidence that we will see everything, that we will have high-quality deal flow, access and the ability to accelerate our companies in a way that really gives them the edge,” she said. “I think the interest in having us on the cap table extends beyond the capital into the strategic access that we have into the space.”

Drive was founded in '19 with investment from DraftKings and three prominent VC firms. Its portfolio currently includes 13 companies, several of whom have been able to scale up operations, including Whoop, Cardless and PickUp. McPherron said the company plans to invest in more companies -- and in higher amounts -- with the new funding.

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