Watercooler has raised $5.5 million in a second round of funding led by British online betting site Betfair to further its push into social fantasy sports games. Existing investor Canaan Partners also participated in the round. Watercooler says its platform — which includes hundreds of sports and TV related fan apps on social networks — reaches more than 26 million users. The startup has also developed several popular social games, including 2009 Bracket Challenge, which it says was the largest basketball tournament game on Facebook this year. It also recently launched a fantasy football game on the social network.
The startup says it will use the new funds to develop additional fantasy sports and social games, saying it has seen “fantastic momentum” in that market. Watercooler previously raised $4 million in May 2008 in a round led by Canaan Partners. Release.

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