Fantasy esports site AlphaDraft has closed a $5 million round in seed funding, the company announced earlier today. The investment should put AlphaDraft in a strong position to compete in the burgeoning and suddenly crowded fantasy esports landscape, which most recently made headlines when competitor Vulcun announced a $12 million Series A funding round.
AlphaDraft’s investors include traditional venture capital firms like the New York-based Metamorphic Ventures. But by far the most notable investor in this round is former NBA commissioner David Stern, who stepped down last year after spending 30 years as one of the most important names in sports.
Taking a page off popular traditional fantasy sites like DraftKings, AlphaDraft features daily and weekly contests where users can draft their own teams, then compete against one another score points. Those with the most points at the end of the contest receive cash prizes.
The site is only one year old, but has already established a firm foothold in the fantasy esports marketplace. It currently supports League of Legends, Dota 2, Counter-Strike, and Smite, and promises to support one additional title by June 1. It will also include contests for 10 pro leagues within those titles.
Users on AlphaDraft have already submitted over 1 million contest entries, and at least one member has already received tens of thousands of dollars in prizes, according to the company. This funding could easily send those numbers skyrocketing upwards.
“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,” CEO Todd Peterson said.
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