
Dream Sports Inc., the parent company of fantasy sports platform Dream11, has established a $250 million corporate venture capital and acquisitions arm called Dream Capital to invest in the domains of sports, gaming and fitness technology startups.
The CEO of Dream Sports, Harsh Jain, told the Economic Times (ET), “We want to redeploy our EBIDTA (earnings before interest, depreciation, tax and amortization) and invest further into inorganic growth.”
“We’re not a VC fund. We don’t have a fund cycle. We will provide patient capital”, he continued while adding that the company was open to minority investments and acquisitions.
According to ET, Dream Capital will cut cheques from $1 million to $100 million and is considering investing in around 20 startups that have the potential to achieve at least $100 million in annual revenue within five years.
The CEO stated that the fund would make multi-stage investments and has no exit requirement. “We don’t have to ever cash you out, so we’re happy to just invest and help you build”, he said.
Jain told ET that they had launched Dream Sports investment as an experiment after which they learned that they didn’t want to go after incubating but wanted to support entrepreneurs who already had “dedicated a few years of their life” to solve a problem.
Earlier this year, Dream Sports raised $400 million in new funding led by several global investors.