What is your idea / business and to whom is it addressed?
The project uses proprietary software to sovle a problem. We have built a free online sportsbook for users in the United States over 21 years of age. It is free for the players and they win cash and prizes from their wagers. It is legal in all 50 states because it involves no risk to the players. The money comes from advertisers who are able to directly target their desired market utilizing the proprietary software which only shows interactive ads to the desired target market. Players are shown a short, whimsical ad and asked a question about that ad. Players are incentivized to interact with the ad and answer a follow-up question correctly to earn additional "action bucks". "Action bucks are then used for free sports wagering. The concept of incentive viewing has been tested and proven on a related platform. The platform has received an overwhelmingly positive response from advertisers.
How should the idea/business earn money?
The money comes directly from advertisers. A portion of the advertising revenue covers our operating expenses and prize money for players participating. The business retains 20% of all advertising dollars as profit. The profit is purely a function of the number of players on the platform. As an example, at the lowest billed advertising rate every 10,000 players on the provides $560,000 in profit annually. The ad revenue can be increased above a certain player participation level and we may be able to double our annual profit. Ideally we would like to get the platform above 25,000 users in the first 6-9 months.
At what stage is the idea / business at the moment?
The site is live and we are in beta testing. We will fully launch June 1, 2020. The heavy lifting has been completed and we have spent over $75,000 during this process. There are no other investors at this time.
What do you need?
We are specifically looking for a partner/group who can provide $300,000 in funding (10% equity). The business valuation is currently $3 million dollars. Based on acquiring roughly 54,000 users in the first 12 months. Even with only 18,000 users, the valuation is still 3x earnings. We believe with marketing and branding we can acquire 200,000 users within 2 years. However, since we have no other investors, we are willing to negotiate on the valuation and equity for an investor. The funds will specifically be used for marketing, branding, and player acquisition. Investors will receive 100% of the profits until the recoup their investment which we anticipate being less than 6 months.
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