Drive by DraftKings, a venture capital firm backed by Boston-based online sports-betting operator DraftKings Inc. and a handful of local venture investors, plans to invest its $60 million first fund in sports tech and entertainment companies
The firm describes itself as a "multistage" venture capital firm that includes as its founding partners DraftKings (Nasdaq: DKNG), General Catalyst, Accomplice and Boston Seed Capital.
CEO and managing partner Meredith McPherron, a former venture partner at Boston-based Glasswing Ventures, has been leading Drive by DraftKings since November last year.
Announced on Wednesday, the first fund was raised in six months and is oversubscribed by 20%, according to the firm. Notable investors include The Kraft Group LLC, the Jones family of the Dallas Cowboys and DraftKings Inc.
The firm also works with what it calls an "All-Star Network" of high-profile figures in the world of sports who support the firm’s investment strategy, including three-time Olympic ice hockey medalist Hilary Knight. Sam Kennedy, president and CEO of the Boston Red Sox, is also part of the network.
“To me, it’s all about people — the right people — and I couldn’t pass up on the opportunity to partner with Meredith and her amazing team," Kennedy wrote in an emailed statement. "It’s a privilege for me to be part of this dynamic, exciting firm that is identifying the next generation of companies in sports tech and entertainment.”
The firm's current portfolio includes Boston-based fitness wristband maker Whoop Inc., which hit a $1 billion valuation last year and is also backed by SoftBank Vision Fund 2, and Boston-based Guidesly, a mobile platform connecting outdoor enthusiasts with trusted guides for fishing trips.
The news of the first fund of Drive by DraftKings comes a week after HubSpot Ventures, the venture capital arm of Cambridge-based HubSpot Inc. (NYSE: HUBS), announced plans to invest $100 million in tech startups building software-as-a-service products.
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An earlier version of this article mischaracterized the relationship between Drive by Draftkings Inc. and DraftKings Inc.
