The Problem:
Few people understand how big weekly fantasy football is going to be. Though there are competitors in the space, it is still a land grab.
The Business
A weekly fantasy football site.
Doableness
Getting traction is often the problem. Traction will be the challenge here. Fanduel, a large player in the space, has raised $7M thus far. The challenge is to build a quality product somehow with significantly less than $7M, put in differentiating features, then raise money in a fashion similar to Fanduel.
From the limited research I have done, it seems as though Fanduel has about 40K monthly unique visitors and has revenue of about $80K per week. With only 20 employees, this seems like a pretty attractive business. Like online poker of years ago, the market is still in its infancy.
I don’t know the answer to: How Big is the Daily / Weekly Fantasy sports market. But I think by the end of this football season, it’s going to be a lot bigger. I think this might be the year for a tipping point.
My Thoughts
In my job five years ago, I looked at a business plan for a daily fantasy baseball site. I didn’t love the plan and it was going to take resources we didn’t have at the time. In retrospect, I wish it had been something I had pressed. It literally took years for it to gel for me.
That said, it’s still very early. It’s quite possible the winners in this space haven’t started yet. That probably won’t be true a year from now.
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