![]() "In my opinion, we came in at the perfect time."ĭarren Heitner the Founder of South Florida-based HEITNER LEGAL, P.L.L.C. "If you're not in now, then it's hard to get a VC to give you millions of dollars," added Murphy. He looks at the influx of daily fantasy sports state regulations as an added cost, but also views it as being "the moat being built around the industry now." The regulations make it even harder for new entrants to come in to the industry. "We've chosen to be as scrappy as possible and build as good of a business as possible." "We actually have cash coming in from our contests," said Murphy. Murphy says that the strategy has allowed his company to be a bit different than the likes of FanDuel and DraftKings. So we decided to spend the money very slowly and make sure we survive." "If we tried to close a week later, it would have never gotten off the ground. ![]() " When we raised our first seed round, we closed it a week before the Ethan Haskell story broke," explained Murphy. In fact, if certain news broke just a bit sooner, it could have marked an early end for Murphy's startup. Timing has also been on the side of Boom Fantasy since its creation. He also believes that it is just a matter of time before a company like Paddy Power Betfair comes in to scoop it up.īoom Fantasy Was Fortunate To Launch Before The Ethan Haskell Scandal. But I think product comes first."Īnd Murphy thinks that his company was built with a product that will outlast his competitors. The company that passes it will have to have a great product and be well funded. "I don't think it will be FanDuel or DraftKings. " Ultimately who will win this market in five years?" questioned Murphy. ![]() Instead, his focus is on being profitable, and he thinks that the magic is to make game play more enjoyable while limiting the amount of money spent on employees (which Murphy said he takes pride in). Murphy acknowledges that it is very hard to compete with FanDuel and DraftKings on prizes. ![]() We will also have about $100,000 in prizes for the NBA Finals." "We made $50,000 in revenue last year and project $500,000 for this year. "We have been resistant to spend on marketing," explained Murphy. But it is taking a different approach from its competitors by focusing on product first. The second seed round for Boom Fantasy also includes one minority Major League Baseball team owner and former executive vice president of ESPN Sean Bratches.īoom Fantasy Has Gone From $50,000 In 2016 To A Projected $500,000 This Year.ĭespite a significant seed round of funding and the inclusion of many existing users from Draftpot, Boom Fantasy still has its work cut out before becoming a real competitor of DraftKings and FanDuel. "If asked what venture capitalists I would choose as a student at Stanford, I would have picked Founders Fund and Peter Thiel." "This is first fantasy sports investment," said Murphy. This new round is led by Founders Fund, which counts entrepreneur Peter Thiel as a partner. Boom Fantasy's first seed round was led by Zynga CEO Mark Pincus and included the Stanford University StartX Fund, Rubicon Venture Capital and five Stanford business school professors. There is certainly already a level of comfort with investors who may be tentative to invest in the daily fantasy sports industry that has already seen many startups crumble before ever reaching profitability. We think the more they see Boom Fantasy do deals like this, the more comfortable they will be putting $100-$1,000 on our platform."īoom Fantasy's Second Seed Round Is Led By Founders Fund And Peter Thiel. This industry has been so tumultuous - so many companies have gone out of business - that for a medium stakes player, they can be resistant to try a new platform. "Secondly, I think is getting us an additional level of credibility. "First of all, the acquisition is about users, transfers of accounts, getting them used to Boom ," explained Murphy. The DRAFT/Betfair reference made by Murphy refers to the recent acquisition of Jeremy Levine's DRAFT product by Paddy Power Betfair for an up-front amount of $19 million that could turn into $48 million paid out over a stipulated period of time.ĭraftpot itself had raised roughly $3 million prior to this acquisition by Boom Fantasy, with a $2.2 million seed round closing in September 2015. However, if it passes muster, then it will easily control over 95% of the daily fantasy sports market. ![]() DraftKings' merger with FanDuel has yet to be approved. ![]()
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