Tap into the fantasy sports industry—where the thrill of sports blends with the power of technology.
The fantasy sports industry is gaining popularity. Key factors fueling its market growth include tech advancements, increasing interest among young consumers, AI integration, and the surge in DFS. Plus, it’s investors’ darling due to resilience during economic fluctuations and a capacity to retain loyal customers.
Owing to this, the fantasy sports industry is ripe with various opportunities for startups to capitalize on:
Be aware of potential risks like regulatory issues, data breaches, customer retention hurdles, and funding race.
We excel at securing vital funding, managing M&A deals, and creating outstanding market entry strategies and compelling pitch decks.
Check out our fantasy sports market research to discover industry trends, potential startup risks, and crucial tips on getting funding.
The fantasy sports market is projected to more than triple by 2032, hitting $84.7 billion.
The number of active users within the fantasy sports industry.
Over 40% of users choose premium online games.
Over 79% of users play fantasy football.
Of DFS players are under the age of 35.
The fantasy sports industry is a dynamic landscape apt to change rapidly due to tech advancements, increased internet penetration, and social media integration. All this gives rise to many industry trends:
Daily fantasy sports increase user engagement.
AI integration makes in-game decisions more relevant and informed and the user experience more immersive.
Real-time data integration improves decision-making and gameplay.
Expanding sports options allows companies to tap into new markets and demographics.
Esports inclusion broadens market reach and enhances user engagement.
Social and community focus enhances user experience.
Why it matters: catching up with the latest industry trends helps startups gain a competitive advantage and attract the right venture capitalists.
Mostly funded sectors:
Knowing the obstacles is already halfway to success.
Some domestic sports betting sites present themselves as fantasy sports platforms. They operate without proper licenses and don’t adhere to fair play standards and data security protocols.
Such unregulated platforms pose a threat to users and undermine the integrity of the legitimate fantasy sports industry. As a result, startups may face regulatory challenges and customer and investor skepticism while trying to launch a new fantasy sports project.
It’s pivotal to comply with all the industry rules and standards. To do this, fantasy sports startups should:
The fierce competition in the fantasy sports market poses a challenge for newcomers to not only acquire but also retain users.
The absence of a solid user base leads to:
To stand out and win the audience, fantasy sports startups should:
A case in point: In 2022, DraftKings, a fantasy sports platform, was hacked during the World Cup, affecting 68,000 users and costing $300,000 in lost money.
Developing a robust, scalable, and secure platform is a must for a fantasy sports startup. Failure to do this may lead to:
To maintain user safety and uphold their reputation, fantasy sports startups should:
Fantasy sports investors focus on startups with a clear competitive edge, proven scalability, and a robust user base.
Securing the necessary fantasy sports funding is pivotal for industry newcomers. And if they don’t manage to attract the appropriate investors, it may result in:
To gain investors’ attention, startups need to:
The fantasy sports industry is very appealing to potential VCs. First of all, the market offers significant growth potential. Second, it promises high profitability, with revenue typically generated from entry fees, ads, and sponsorships. Plus, the industry is characterized by low capital intensity.
It’s relatively easy for fantasy sports startups to secure funding today. Users, especially young individuals, have become more aware of fantasy sports. Plus, the market growth and success of leading fantasy sports companies like FunDuel and DraftKings.
It usually takes two or three weeks to create a robust fantasy sports financial model and comprehensive pitch deck. However, there are cases when we need around a month to finish everything. So, it’s better to negotiate the time frames individually.
Many fantasy sports pitch decks fail to provide a cohesive investment narrative. Plus, they miss the information about why they chose exactly this market. Some presentations lack a competition slide. It prompts the VCs that the startup doesn’t know the playground well enough to get a competitive advantage and become profitable.
The fantasy sports market is fiercely competitive, with constantly emerging startups and established players all fighting for a piece of the market.
We help investment funds dig deep into prospective fantasy sports projects through comprehensive due diligence, ensuring they’re not backing the wrong horse. Additionally, we roll out full-fledged fundraising support for our partner fund’s associated companies.
Yes, we do! Our team assists with fantasy sports M&A by scouting for promising opportunities, evaluating them for potential success, and facilitating smooth partnerships that continue well after the deal is closed.
If factors like round size, team, and product match up, we’ll surely link you with notable VCs in the fantasy sports sector. Still, remember this is just one facet of our extensive relations package. We compile a directory of investors with a strong interest in fantasy sports, prepare founders for intro meetings, and ensure seamless cooperation post-deal.
Certainly! Our experts deliver tailored insights based on industry overviews, competitor evaluations, and in-depth market surveys to guide you to success in the fantasy sports sector. By tapping into our trusted, exclusive databases, we ensure you gain a comprehensive perspective on the scale, variety, and competitive dynamics of the fantasy sports environment.
Our core proficiency lies in helping startups from the Seed to Series B growth stages within the fantasy sports industry and beyond. However, we also support businesses in Pre-Seed and Series C+ growth stages and forge ties with established companies and investment funds.
Stepping into the fantasy sports landscape? We know the way. From end-to-end fundraising support to outsourced M&A guidance and growth blueprinting, Waveup will help you accelerate your journey to success. Drop us your email, and let's talk!
Dive deep into industry research with unparalleled depth and breadth
Equip yourself with the analysis and forecasts essential for strategic planning
Understand today’s trends and anticipate tomorrow’s shifts to ensure your business stays ahead