In light of a number of small and mid-tier daily fantasy sports sites shutting down in recent months, unable to compete among the big boys, Gambling911.com asks: Is AlphaDraft.com well funded?
The answer to that question is a resounding YES.
AlphaDraft, a new eSports daily fantasy site, recently secured $5 million in investor seed money on May 19 following an undisclosed amount back in February. We trust this New York, New York company will be around for some time and has the potential of being a force in the explosive eSports fantasy space along with rival Vulcun.
AlphaDraft also brought on board strategic backers in Melo7 Tech Partners (the investment shop founded by Knicks superstar Carmelo Anthony) and former NBA Commissioner David Stern. Other investments include Metamorphic Ventures, William Morris Endeavor Entertainment, Upfront Ventures, IDG Ventures, Amplify.LA, KEC Ventures, Freestyle Capital, SK Ventures, Basset Investment Group, and Gokul Rajaram.
The site promises to pay out over $100,000 each week and says it anticipates paying out $5 million in cash and prizes this year. It hopes to have 1 million active users by year’s end.
The company was founded by Todd Peterson, a former software guy, Matthew Reilly and Neil Harris and is based out of Santa Monica, California.
It is looking to grow beyond League of Legends to include fantasy draft competitions around Counter-Strike: Global Offensive, Dota 1, SMITE, and another undisclosed game.
– Aaron Goldstein, Gambling911.com