fanduel founder and sequoia bet on spanish-language fantasy sports app draftea

Draftea Secures $13.2 Million to Revolutionize Fantasy Sports in Latin America

Alán Jaime Misrahi, the founder of Draftea, cultivated a deep passion for soccer throughout his youth, even competing in Mexico’s third division. Although a professional playing career at the highest level didn’t materialize, Misrahi is now focused on achieving victory with his new venture. He stated in an interview with TechCrunch that Draftea intends to capture the attention of the 350 million sports enthusiasts across Latin America.

Introducing the First Daily Fantasy Sports Platform in Spanish-Speaking Latin America

Draftea has officially emerged from its stealth phase, announcing a $13.2 million seed funding round. This investment was spearheaded by Kaszek, with significant participation from Sequoia, Bullpen, and Nigel Eccles – the founder and former CEO of the prominent sports-betting company, FanDuel. Notably, Eccles now serves as the chairman of Draftea’s board.

This funding represents Sequoia’s inaugural investment in a company with headquarters in Mexico. This move follows Sequoia’s announcement six months prior, outlining plans to significantly increase its focus on opportunities within the Latin American market.

How Draftea Works and Future Expansion Plans

Draftea’s application allows sports fans to participate in daily contests by assembling a virtual team of players for a fee. Successful participants win cash prizes. Currently in a private beta, the platform is slated for public launch in the first quarter of the current year.

Initially, Draftea will concentrate on Mexican fantasy soccer leagues. However, Misrahi envisions a broader scope, aiming to eventually incorporate fantasy games encompassing “every single sport in the world.”

Capitalizing on Latin America’s Passion for Sports

“In a region where soccer is deeply ingrained in the culture, where communities gather for sports-related activities, and where stadiums are consistently filled, people cherish sports as a family tradition,” Misrahi explained. “Furthermore, the prevalence of WhatsApp groups dedicated to sports and fantasy discussions highlights a desire for connection – Draftea seeks to unify all of this.”

While platforms such as Costa Rica’s Betcris already enjoy popularity in the region, Draftea distinguishes itself as a “much more social platform.” It further differentiates itself through its focus on daily games and ongoing interaction, contrasting with the less frequent contests offered by traditional, season-long fantasy sports platforms.

A Strong Founding Team

The core team behind Draftea includes, in addition to Misrahi, Alejandra Lascurain, formerly the product head at Mexico’s leading neobank; Miguel Gutiérrez-Barquín, previously responsible for growth initiatives at Rappi; Joe Cohen, formerly the head of engineering at Vercel; and Andreas Assad, with experience at EA Sports.

Currently employing 34 individuals, Draftea intends to double its workforce in the coming months, expanding across all critical departments, according to Misrahi.

Preparing for the FIFA World Cup

The team is strategically positioning itself for the FIFA World Cup in Qatar this November, anticipated to be the most significant live sporting event of the year.

“Our objective is to have a polished product, launched in numerous Latin American countries, and to have hundreds of thousands, or even millions, of users actively engaged with our platform by that time,” Misrahi stated.

Sequoia’s Investment Rationale

Konstantine Buhler of Sequoia connected with Misrahi through a mutual acquaintance at Stanford, where Misrahi completed his MBA last year. Buhler’s decision to invest in Draftea was influenced by Misrahi’s evident “founder-market fit,” stemming from his passion for sports and his background as a professional soccer player, as Buhler conveyed to TechCrunch via email.

“Ultimately, it centers on customer enthusiasm,” Buhler wrote. “Draftea is pioneering a unique community for sports fans in Latin America, empowering them to become central figures in their favorite games. We are confident that Alán and his team will quickly resonate with fans in Mexico and subsequently expand to other countries in time for the World Cup.”