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teamstr social fantasy sports

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The next-generation fantasy football platform that combines a social network with a thrilling game.

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Funded
€100,005 target
€104,631 from 0 investors
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Business overview

Location Munich, Germany
Social media
Website play.teamstr.de
Sectors Games Digital B2C
Company number HRB227326
Incorporation date 1 Aug 2016
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Investment summary

Type Equity
Valuation (pre-money) €3.4M
Equity offered 2.86%
Tax relief N/A

Idea

Introduction

teamstr is the next-generation fantasy football platform. We are taking a social network into the world of daily fantasy sports. Our app is not only a cutting-edge free daily fantasy football app but also a platform to connect and engage with like-minded football fans.

At teamstr, you don’t just play for yourself. You create friends lists, build your public profile, share your stories, follow your friends and engage with them.

After two years on the fantasy sports markets, >120.000 users, great activity levels and true lessons learned, we’re now ready to scale and monetize.

Our app has taken something that has been traditionally outdated, tedious and self-oriented and made it thrilling, engaging and truly social. Our brand, with its unique tone of voice and visual appearance, targets primarily young people.

Taking this even further, we intend to integrate sports brands into our feeds, support users to become influencers, and give football stars (and clubs) a place to reach their fans.

Please note that the share price for this round is €94.80. Due to this high share price, we have decided to allow investors to hold fractional shares. This means that we have reduced the investment multiple to €9.48 (representing 0.1 of a share), with the minimum investment being €18.96. As these shares will be held via the Seedrs Nominee, fractional entitlements are possible. In the event that shares were to be transferred out of the nominee structure, Teamstr would take the steps required to subdivide its shares so that fractional entitlements result in whole shares.

Intended impact

Initially, teamstr was founded to build a daily fantasy sports for cash platform to bring FanDuel’s and DraftKings’ success story to Europe.

When teamstr was created in summer 2016, we launched it as a free-to-play product. The success was huge: >100.000 registrations in the first season at <€0.50 CAC, up to 20.000 monthly active users, and countless requests to drive forth social engagement features.

We then introduced cash-gaming in September 2017 and quickly realized that, in our opinion, Europe is not yet ready for cash gaming.

That’s why we listened closely to what our users demanded, consulted the best football experts together with our investor Idan (who owns 32% of Atlético Madrid) and created teamstr 2.0: the result is answering football fans’ desire for community, thrilling interaction, and to be recognized for your skill.

By offering a smart, intuitive way to combine daily fantasy football with an Instagram-like social network, teamstr will revolutionise the way football fans engage with football.

App demo

Substantial accomplishments to date

User traction:
* 120,000+ registered users to date.
* 20,000+ monthly peak of active users during season 16/17.
* 7-10,000+ weekly peek of active users during season 16/17.
* 2,000+ private contests created.

Investors:
* Idan Ofer: Israeli business billionaire, Atlético Madrid owner (32%), principal owner of Quantum Pacific.
* Andy Goldstein: founder & director LMU Entrepreneurship Center, German Accelerator, Deloitte Digital.
* Wichard v. Alvensleben: ex-marketing director at bwin party.

Accelerators:
* Jan. '17: Sky Germany Accelerator (0% equity, €55k cash & developer services, partnering with Sky Germany departments, mentoring).
* Apr. '16: LMU Entrepreneurship Center (mentoring, office, network, 0% equity).

Advisors and mentors:
* Carsten Schmidt, CEO Sky Germany, coached us during Sky Play Accelerator.
* Meni Michaeli, ex-Director Pokerstars.com.
* Merlin Jacob, Co-Founder OnPage (now Ryte.com), ex-Gaming Entrepreneur.
* Stefan Zant, Managing Director at ProSiebenSat.1 Sports.

Awards:
* Feb. '18: Winner Breakthrough Award 2018 category Apps & Mobile Services.
* Sep.' 17: Winner Bits & Bretzels Pitching Awards category Lifestyle & Entertainment.
* Feb. '17: Winner Breakthrough Award 2017 category Apps & Mobile Services.
* Oct. '16: Winner Cash Walk Awards.

Monetisation strategy

We combine two proven monetization strategies: Candy Crush’s convenience and booster products and Instagram’s feed advertisement.

teamstr is a free-to-play social network and football manager app. Users win coins for good performance which they can use to purchase convenience products (such as more statistics, quick draft options, or more drafting budget).

However, users can also directly purchase coins to activate convenience features (and jump the global ranking). Users want to perform well and get manager-badges, team-awards, and other personalised achievements for their public wall. In-app purchase prices range from 0.99€-2.99€ and last for one week.

Feed monetization: later, we intend to allow (sports) brands, clubs, and football stars to build their own profile and followers. Whenever those brands post, their followers will see this in their feed. We intend to sell high-quality ads on the feed. Imagine this much like Instagram.

Use of proceeds

Recently, teamstr finalized €345k investment from existing Angels and Idan Ofer (who owns 32% stake in Atlético Madrid). We are now carrying out a crowdfunding round on the back of this institutional round. Firstly, to allow our most loyal users and (YouTube-) influencers who helped us get where we are now to benefit from the growth of teamstr. Secondly, for everyone who believes in what we’re doing and the social opportunity in football gaming.

The proceeds will be used to:
1) The majority to drive traction onto our recently launched teamstr 2.0 platform
2) A smaller part to continue to develop our platform and integrate community battle features, "Instagram"-like stories, brand profiles etc.

As we’ve been developing teamstr 2.0 now for the past 5 months, future development costs are minor and most of the proceeds will go into scaling and monetisation.

Market

Target market

Our target market is:
*Mostly male.
*Mostly young generation (14-30 years old).
*Educated.
*Football fans.
*Social media user (Instagram, Snapchat, Facebook).

We believe that the product we have developed perfectly fits the next generation of mobile football fans. Being part of an online social community has become paramount to the majority of mobile users. teamstr offers the thrill of daily fantasy sports and aims to create a new ecosystem for football fans, football clubs/ athletes and (sports) brands.

Our target audience mirrors what we believe the sports industry desires: young generation, willing to spend money on sports and mobile games, and a desire to consume media and be entertained.

Characteristics of target market

The global mobile gaming market was worth an estimated >$46Bn in 2017 with an estimated 12% CAGR 2017-2020. Soccer is the world’s most popular sports with >3.5Bn fans. The potential target market is substantial.

In Europe, our first core market, roughly 25% of the population is in the 'millennial' age. This is our core target market and mobile gaming, sports and social apps play a major role in those users’ everyday life.

If the right conditions are met, the potential user base can be huge. Especially, as teamstr is a true social network fantasy sports platform. Think of mobile gaming, a platform adapted to the millennial's unique desires and spending power combined with a brand that speaks their language.

But we are also closely observing evolving opportunities. For instance, the Supreme Court recently paved the way towards legalizing online sports-betting in the US.

Marketing strategy

We believe that the foundation of our growth will be our brand and offering we create for our fans. We’re absolutely convinced that by building a unique and attractive social platform and thrilling game, users will drive word-of-mouth and bring their friends.

That said, we are experts in influencer marketing.

In our first season, ca. 80% of our marketing acquired users came from FIFA-gaming YouTube-placements. Back then, their target audience fit greatly to our product. Now, we believe that it fits even more with our social gaming aspect. CAC rates were <0.50€ across all campaigns in season 2016/17.

We intend to take influencers marketing to the next level by introducing “community battle”.

YouTubers will be able to battle on teamstr and invite their audience to join the battle. In the battle, followers decide which YT-team they join. YouTubers love this concept as it drives engagement on our platform as well as their channels.

Some KPIs from season 2016/17:
Registrations via YouTuber: 65k.
Marketing: €37k.
Conversion YT-video-view/ download: ca. 2%.

Competition strategy

Looking at our current app, teamstr doesn’t have direct competition. We are not only a daily fantasy football platform but also a social network that awards your football manager skills.

That said, there are multiple fantasy football platforms in the markets. We would describe most of them as seasonal (e.g. Barclay’s Fantasy Football, Kickbase), outdated and complex (e.g., Comunio), or betting-driven (e.g. Sky Sports Fantasy Football, Dribble, FanDuel, Draftkings).

End of 2018, we intend to release an offline gaming version of our app to enable users to play teamstr while there are no actual matches happening in the leagues. This way, we hope that we will become relevant even during season breaks.

By 2019, we will explore the possibility of putting athletes on the blockchain (much like Panini cards) and enable users to purchase and play with them on teamstr.

Ultimately, teamstr’s vision is to become the social fantasy sports network for fans across the world. For every sports fan, there will be a teamstr-game to play and gain social recognition for your skill.

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Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This campaign for teamstr social fantasy sports has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 15 June 2018 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from €3,392,608

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

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Equity Offered

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When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

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