Amid a big growth period for the company, AllCity Network announced it raised $9.4 million in Series A funding. The digital sports media startup has now raised $12.4 million since its formal launch about five years ago.
AllCity CEO Brandon Spano told Marketing Brew he wants to double the size of the company using the new investment. AllCity will soon launch free, ad-supported television (FAST) channels to stream its hyperlocal content, hire more sales staff, and launch a new local outfit.
The funding round was led by new venture capital firm Mosaic. The fund is overseen by recently retired four-time NBA champion and newly appointed NBPA executive director Andre Iguodala. Iguodala played a season in Denver, where AllCity sprung out of BSN Denver. That outfit ultimately became the template local network for AllCity after a rebrand as DNVR.
Spano told Barrett Sports Media last week the company hopes for a valuation near $100 million in the next 18 months, at which point it will begin another fundraise. Spano has repeatedly said DNVR and PHNX are profitable while CHGO is close.
The most recent local network in Philadelphia, PHLY, reported a strong start. Spano previously told Marketing Brew PHLY had 1,000 paid subscribers upon launch and projected to be profitable within a year of its early September launch. The company projects PHLY to eventually bring in $10 million in revenue.
Atop all this, AllCity recently launched daily national podcasts on the NFL, NHL and NBA.
While the hyperlocal model is its bread and butter, AllCity clearly has its sights set on being an even bigger player in the sports media business over time. This new cash raise will allow the company to expand and experiment.
About Brendon Kleen
Brendon is a Media Commentary staff writer at Awful Announcing. He has also covered basketball and sports business at Front Office Sports, SB Nation, Uproxx and more.