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Insight Market Series A


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Fundraising deck for Series A (1999)

Published in: Business
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Insight Market Series A

  1. 1. InsightMarket This confidential presentation has been prepared for those wishing to establish a business relationship with By attending and participating in this presentation, you agree not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of the content of this presentation to third parties without our written permission. If you take any notes or accept any copies of materials with this presentation, you agree to return such materials if no business relationship is established. This presentation does not in any way constitute an offer to sell or a solicitation of any offer to buy any security. ip_8-25Property of, Inc.—All Materials are Confidential 1
  2. 2. Summary i Large growing market i Unique and valuable approach to capture share i Tremendous value creation opportunity i Right core team ip_8-25Property of, Inc.—All Materials are Confidential 2
  3. 3. Traditional Gambling Market The traditional gambling business is an enormous global industry. $1.4T $160B $15B Worldwide Lottery Event Wagering Casino Markets Legal Via Internet Turnover Revenue by Gambling Type Event Wagering 100% 80% 60% 40% 20% 0% ip_8-25Property of, Inc.—All Materials are Confidential 3
  4. 4. Internet Gambling - Revenue Projections Explosive growth in online gambling and a shift to event wagering will drive a $2.3B legal market by 2002. $0.7B 1998 Online Gaming $9.0B 2002 Online Gaming 10 Worldwide Internet Gambling Revenues 8 6 4 2 0 $160B $9B $4.5B Casino & Lottery Event Wagering Casino & Lottery Event Wagering Traditional Gambling 2002 Online Gaming * Source: Average of estimates from Deutschbank, DataMonitor, and Cummings Associates Not Legal (or Gray Area) Legal Event Wagering ($2.3B) 2002 Online Event Wagering ip_8-25Property of, Inc.—All Materials are Confidential 4
  5. 5. wannaBet Approach WB will merge internet & person-to-person betting — providing a community-based betting marketplace. wannaBet 1 • Feed data for games, players, stats into system • Build list of “one-click” bets 2 • Validate acct. balance - • Post bet to inventory 3 • Validate acct balance • Match bet and drop from inventory (Take 2.5% Fee) 4 • Enable chat and other community tools before & during event 5 • Enter results data, decide winner, update accounts (1A) Bet Creators (2A) Bet Takers wannaBet? Review options, initiate bet Sure!!!! Review options, take bet (4A) All Bettors Cybertrash talk — have fun ip_8-25Property of, Inc.—All Materials are Confidential 5
  6. 6. Inventory Bettors will have the widest inventory of options at Sports Movies, Music, & Other Entertainment Other Bets Available Today: i Professional sports i College sports i Horse Racing i Almost nothing i Almost nothing New Potential Betting Communities & Options: i National Sports - draft picks - individual performances - pool betting i Local Sports i Niche Sports - X Games - Quokka - Strongest Man i Movies - Cannes, Oscars, Sundance, MTV, VH1 awards - box office records i Music - Billboard top 10 - Grammy Awards i Television - Game Shows - Soap Operas i Politics - elections - invasions - public opinon polls i Legal - trials / hearings i Financial - market closing i Other - Royal family - Shark attacks ip_8-25Property of, Inc.—All Materials are Confidential 6
  7. 7. Viral Marketing Viral marketing will reduce barriers and create incentives for trial. Bet Creator Bet Taker i I get $20 free bet! i I can offer free bet to my friend (or group of friends) i This will be fun!! i I get free $20 bet i Must be legit— endorsed by friend i This will be fun!! ip_8-25Property of, Inc.—All Materials are Confidential 7
  8. 8. Free Press wannaBet will generate tremendous customer awareness through free press. So, you think Blair doesn’t have a shot in next week’s elections? Wanna bet? A new Internet site that just came on-line this month will allow you to do just that. aims to turn wagering on its head by providing a marketplace for punters to place wagers with each other -- not the house -- on just about anything. What are people looking to bet on today? There’s all the regular football bets, of course. But do you think Fergie’s child will be a boy? Here’s your chance to put £10 on it. Wannabet is not an offshoot of Britain’s betting shops, but instead comes from San Francisco. A team of young Internet entrepreneurs have teamed up with the same VCs who brought us other well-regarded net institutions. The founders even have a patent in the U.S. on the Audacious bets become a perpetual sidebar for the mainstream and tabloid press i Pick the winners in elections i Predict court rulings i Royal family shenanigans ip_8-25Property of, Inc.—All Materials are Confidential 8
  9. 9. Communities Through person-to-person wagering, bettors become part of a community and can interact and compete with other members. Fullback Communities Will Develop i Marketplace is a natural gathering place i Trash talking in chat rooms taken one step further - “Put your money where your mouth is!” wannaBet Will Benefit i Sticky traffic (like eBay - advertising $ potential) i Barriers to switching i Increased share of gambling spend wannaBet ip_8-25Property of, Inc.—All Materials are Confidential 9
  10. 10. Business Model Summary The wannaBet model powerfully combines commerce, community and content. ip_8-25Property of, Inc.—All Materials are Confidential 10
  11. 11. Competition Numerous competitors exist, but none has adopted our approach. Traditional Gambling Players Moving Online Internet Communities Examples: i Ladbrokes, William Hill, Kerry Packer, Harrah’s Start-up Internet Gambling Sites i YouBet!, Galaxyworld, BlueSq, (150+ companies) Issues: i Low innovation i Low innovation i Low technology and internet competence i eBay, Yahoo , FreeServe i Sportsline, Football 365 i Portals highly conflicted i Sports sites are content focused but a potential threat i Limited technology and internet competence i Low-road approach i First-mover advantage will give 12-18 month head start i Network effects will create enormous barriers to competition ip_8-25Property of, Inc.—All Materials are Confidential 11
  12. 12. Revenue Potential Three major revenue sources will drive wannaBet’s top-line growth. Sources of Revenue Expected Case Revenues $2M $21M $101M Year 1 Year 3 Year 5 $125M $100M $75M $50M $25M $0M High Case $42M Low Case i Commission on bets i Interest income on balances i Advertising/partnership revenue $5M $200M $1M $9M $49M Assumptions: 3.5% internet penetration; 2.5% commission; $33 wagered per month; account balance ($50); advertising revenue $7.50 / year ip_8-25Property of, Inc.—All Materials are Confidential 12
  13. 13. wannaBet Core Team Background Education Vince Monical Bain & Company i Led pioneering JV between Bain and venture capital firm—assessed potential of 800+ ecommerce companies i Led 8 due diligence efforts and 2 strategic plans for Internet companies Andersen Consulting - successful IT implementation efforts across 8 industries i MBA, Wharton i BS, University of Illinois Josh Hannah Business Development VP Engineering Bain & Company i Led deal generation initiatives for Bain & Co. in e-commerce and buyouts i Implemented turnaround strategy for $800M enterprise software company Globex International (International start-up) i Founding employee of an international investment and trading company startup DoubleClick UK i Regional Vice President for leading UK web advertising company i Responsible for initiating and negotiating partnerships with numerous leading UK web companies Andersen Consulting i 8 years experience managing mission critical applications development i Founding member of Andersen’s internet/ecommerce practice area in 1996 i MBA, Stanford i BA, Berkeley i MBA, Harvard i BS in CS from CSU CTO Sapient i Founder, Vice President of eBusiness Group. Extensive startup, web project management experience. i Founded West Coast office and grew to 70 people i MA in CS from MIT i BA in CS from MIT Mark Peters Bain & Company i BS - Engineering, Stanford Director Web Development Trilogy Software i BS - Engineering, CS - Stanford ip_8-25Property of, Inc.—All Materials are Confidential 13
  14. 14. wannaBet Advisors WannaBet is in the process of assembling a team of top-tier advisors with internet, media, betting and UK market experience. Ron Zeghibe CEO, Maiden Outdoor (UK) Nigel Drummond CEO, Virtual Internet (UK) Geoffrey Cullinan Vice President, Bain & Company (London); ex-CEO, Hamleys Jesse Rogers Director, Bain & Company (San Francisco) Mike Odell Acting COO and VP Sports, Sapient Tony Coles Partner - Gaming Law; Jeffrey, Green, Russell (UK) ip_8-25Property of, Inc.—All Materials are Confidential 14 investor