Fantasy sports startup Sleeper received a $400 million valuation following a $40 million funding round.
Andreesen Horowitz led the round that included investments from Golden State Warrior Klay Thompson’s Thompson Family Foundation, General Catalyst, Birchmere Ventures, Miami Dolphins cornerback Byron Jones, and former NBA player Shane Battier.
Previous rounds included Kevin Durant, Rich Kleinman, and Baron Davis.
With more than 3 million users and a “wallet” feature underway, the funds will be used for product development and hiring, according to CEO Nan Wang.
- The company originally focused on the NFL and NBA.
- Sleeper branched into esports during the pandemic through “League of Legends” and added college basketball earlier this year.
- The platform is exploring developing new fantasy games for the English Premier League, MLB, and UFC.
Sleeper’s leagues are formed in groups of 12-14 players, with the average user spending 20-35 minutes on the platform per gameday.
The company wants to help “sports fans connect with their friends,” according to Andrew Chen, a general partner at Andreesen Horowitz. He says the company’s growth, retention, and engagement are similar to that of a social app.
The fantasy sports market is estimated to reach $32 billion by 2025.