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Silicon Valley area daily fantasy sports site ScoreStreak.com has closed its doors….for now.
An email was sent out to customers this past week claiming the company has been unable to obtain additional funding after raising $1.2 million last year.
Over the last two years we’ve seen incredible growth from our beginnings as a small start-up in Silicon Valley to having thousands of active users playing in our games each month. Late last year we began the search for our next round of funding and the process has taken longer than any of us expected. We are currently seeking an investment of $5 million to bring you significantly larger guaranteed prize pools, new site features and more users to the community.
In order to ensure the best user experience possible, we will be temporarily suspending all operations at Scorestreak until our next round of funding has closed.
Daily fantasy sports sites must generate enough significant volume to stay afloat similar to the online poker network model.
Web gambling companies like Americas Cardroom have suggested daily fantasy sites will have a tough time surviving without other platform offerings. ACR and other online gambling firms plan to start daily fantasy sports sites by year’s end.
- Aaron Goldstein, Gambling911.com
