Athletic has successfully raised $68.1 million over six funding rounds, achieving a valuation of over $500 million. The platform offers premium sports media coverage through a direct-to-consumer subscription model, catering to die-hard fans with in-depth articles, podcasts, and videos.
Keep reading to explore the intricacies of Athletic's fundraising journey and the investors backing this innovative platform.
What Is Athletic?
Founded in 2016 by Alex Mather and Adam Hansmann, Athletic is a direct-to-consumer subscription media company headquartered in San Francisco. The platform offers premium sports media coverage, including in-depth articles, podcasts, and videos, catering to die-hard fans.
With a presence in over 47 markets across the US, Canada, and the UK, Athletic has rapidly expanded its operations. The company employs between 201 and 500 people, including over 300 editorial staff, ensuring comprehensive coverage of local and national sports.
For more information about career opportunities at Athletic, visit their Wellfound page or check out their official website.
How Much Funding Has Athletic Raised?
- Seed
- Amount Raised: $2,300,000
- Date: January 2017
- Lead Investors: Courtside Ventures
- Motivation Behind the Round: The funds were used to expand The Athletic into new cities.
- Series A
- Amount Raised: $5,800,000
- Date: July 2017
- Lead Investors: Y Combinator
- Motivation Behind the Round: To hire laid-off writers and build a new kind of sports news operation focusing on local sports coverage.
- Series B
- Amount Raised: $20,000,000
- Date: March 2018
- Motivation Behind the Round: To more than double staffing and expand coverage to new professional sports markets in the U.S. and internationally.
- Series C
- Amount Raised: $40,000,000
- Date: October 2018
- Lead Investors: Founders Fund, Bedrock Capital
- Valuation at Round: $200,000,000
- Motivation Behind the Round: To invest in audience, data, and editorial teams, as well as podcasts and video teams, to drive subscriptions.
- Acquisition
- Amount Raised: $550,000,000
- Date: January 2022
- Valuation at Round: $550,000,000
- Motivation Behind the Round: Typically aimed to expand market reach, integrate new technologies, or consolidate market position.
In total, Athletic has raised $618,100,000 and achieved a current valuation of $550,000,000.
Key Investors
- Founders Fund
- Details: Founders Fund is a San Francisco-based venture capital firm known for its investments in technology companies. It was founded by Peter Thiel, Ken Howery, and Luke Nosek.
- Investment Focus Areas: Technology, healthcare, aerospace.
- Notable Investments: Facebook, SpaceX, Airbnb.
- Bedrock Capital
- Details: Bedrock Capital is a venture capital firm that focuses on early-stage investments. It was co-founded by Geoff Lewis and Eric Stromberg.
- Investment Focus Areas: Technology, consumer, enterprise.
- Notable Investments: Lyft, RigUp, Cameo.
- Comcast Ventures
- Details: Comcast Ventures is the venture capital affiliate of Comcast Corporation, investing in innovative companies across various sectors. It aims to foster growth and innovation.
- Investment Focus Areas: Media, technology, consumer.
- Notable Investments: Nextdoor, Houzz, FanDuel.
- Courtside Ventures
- Details: Courtside Ventures is a venture capital firm that invests in early-stage companies across sports, media, and gaming. It aims to support innovative startups in these sectors.
- Investment Focus Areas: Sports, media, gaming.
- Notable Investments: The Athletic, 100 Thieves, Beam.
- The Chernin Group
- Details: The Chernin Group is an investment firm focusing on media, entertainment, and technology. It was founded by Peter Chernin, former President of News Corporation.
- Investment Focus Areas: Media, entertainment, technology.
- Notable Investments: Barstool Sports, Crunchyroll, Headspace.
What's Next for Athletic?
As Athletic continues to grow, the opportunities ahead are vast. The company plans to expand its audience, data, and editorial teams, while also developing more podcasts and video content. With over 100,000 subscribers and a presence in 47 markets, the potential for growth is significant, especially as the demand for subscription-based media models rises.
Future fundraising opportunities are likely as Athletic demonstrates its ability to attract and retain subscribers. The company has already shown it can secure substantial investments, and further rounds could help it scale operations and enter new markets. However, challenges remain, including competition from established sports media outlets and the need to maintain high renewal rates. Balancing these factors will be crucial for Athletic's continued success.
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