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Our value prop is simple PowerPoint Presentation
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Our value prop is simple

Our value prop is simple

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Our value prop is simple

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  1. September 2013 - Confidential - Do not distribute

  2. Our value prop is simple We offer sports fans a way to compete against friends or strangers in daily fantasy leagues for cash prizes Invite a friend or get matched up head-to-head; the best stats win the cash prize Choose any 5 players from today’s game Select entry level and prize amount Confidential - Do not distribute

  3. Optimized for every device The experience is the same across devices… Confidential - Do not distribute

  4. Product demonstration: NFL View a Demo at: http://bit.ly/16jbVJ2 Confidential - Do not distribute

  5. Recipe for success • Real traction and success from bootstrapped prototype • Organic private beta launch for March Madness and NBA playoffs with 1k users andyielded the following results in 30 days with no marketing • 2,652 successful transactions, 1,326 successful challenges between users • $44,390 total transaction volume • $2,720 of revenue; $1,104 of revenue after 11 days • $2.72 Average Revenue Per User • $16.73 average transaction amount • Largest “whale” handled $10,934 resulting in $656 revenue for FC • 125 of 1,000 customers with over 10 transaction fees • Happy and loyal customers! Confidential - Do not distribute

  6. Business Model Lucrative business model with no risk 5% - 10% earned from each transaction withno assumed risk Confidential - Do not distribute

  7. Sizing up the market The market is BIG…and we’ve only just hit the tip of the iceberg. How big? • It’s estimated that in 2012, +32M Americans spent approximately $467 each, or about $15B in total playing.* • To put this in perspective, football accounts for $11B of that total. The NFL made $10B over that same period. • 50% of the population plays a March Madness Bracket • $380B of illegal sports bets are placed yearly in the U.S. Iceberg you say? • Yep, it’s growing at a clip of +60% over the past four years.* • Federal exemption for fantasy sports. • The market for daily, skill-based games is ready to explode. Confidential - Do not distribute • *Fantasy Sports Trade Association

  8. Competitive landscape We Are Uniquely Positioned To Win Sports bar & restaurants Gaming entities outside of Nevada Nevada Casinos w/o sports book Fan Duel CBS Sports Yahoo Fantasy Sports ESPN Fantasy Sports Starstreet DraftKings Draftstreet Sports Betting – Real Money Fantasy Sports – Cash Prizes Focus on Friend vs Friend & Rematches Nevada Casinos w/ Sportsbook 2 1 Attacking new greenfield opportunities at the intersection of online/offline gaming Differentiated from other Daily P2P sites by simplicity and ease of use Confidential - Do not distribute

  9. What’s next • Phase 1 - Complete • Daily Leagues in 45 States • Federal & 50 state legal reviews • Mobile accessible for all devices • Launched private Beta for NCAAB • Built multi-sports platform • 9 Patents filed, including: • P2P poker, slots, casino games • Real money fantasy leagues around video gaming • Phase 2 - Underway • Distribution partnerships • Launch NFL, NCAAF, NBA, NCAAB • Co-branded or partnerships with: • Casinos & gaming entities • Media companies • Social media influencers • Challenge Friends & Rematch Opponents Confidential - Do not distribute

  10. Creating Value for Channel Partners There are 216 sports books in Nevada casinos.1 Smaller casinos and casinos outside of Nevada are not generating revenue from sports wagering because of legality, expense or risk. • New Casino positioning w/FC • Fantasy “sports book” revenue at a small fraction of the expense and risk • New sports-based draw • Inter/intra-state revenue from online • New, more effective ways of reaching patrons via social media • Current “status quo” for Casinos • Consumer revenue falling from competition • No inter-state revenue from sports • Traditional email and mail marketing Confidential - Do not distribute • *As of June 30, 2012

  11. Turn key revenue stream & value FC enables venues to create new social, sports-based draws at a small fraction of the cost it would take to build a sports book. Social Media Integration Product & Customer Support $ $$ $$ Kiosks On-Site $$$ Connected with FC users across the U.S. Co-Branded Website Confidential - Do not distribute

  12. How we’re going to grow User Acquisition Channels Web • SEO, Advertising, buy traffic, freeroll • Virality built in: design promotes social sharing and competition • Social media & celebrity endorsements via Twitter, Instagram, Facebook influencers and sports related celebrities Co-marketing with Channel Partners i.e. sports bars, on/off-line media, casinos and gaming entities, brands, sports focused websites • Foot traffic • White label/co-branded web presence • Traditional affiliate marketing Confidential - Do not distribute

  13. Revenue Projections 4 Year Projections Confidential - Do not distribute

  14. Our team • Adam “Ace” Lee, Co-founder/CEO • Sports Tour and Merchandise Company with Seattle Mariners • Visionary in Online Peer to Peer Gaming • Developed and owned over $25M of real estate • Doug DeLuca, Co-founder/Biz Dev & Strategy • Co-Executive Producer, Jimmy Kimmel Live • Connected to major brands and influencers • Former CEO of EliteXC(bought out by Strikeforce/UFC) • Dan Shupp, Free Range Technology • SF-based development shop with operations in Asia • Agile and scrum development system Confidential - Do not distribute

  15. Investors & advisors Chris Petrovic Adam Shaw Andy Choy Victor Lee Neal Lenarsky Vik Lakhwara Executive NFL, FOX, CAA Chairman STI Management CEO Riviera Las Vegas, Wynn Executive in Macao Executive GameStop, BetFair, Playboy VP Digital Branding Hasbro Executive Reinventures, SK telecom ventures Confidential - Do not distribute

  16. Next Steps Investors We’ve accomplished a lot with $125K: • Built a strong core team and advisory board • Successfully launched private beta, proving out the MVP with revenue and users • Filed patents in verticals surrounding our core patent Now we are looking for $1M to knock it out of the park: • Key hires (CTO, Channel Sales/BD) • User Acquisition – Target 100K users with $10 MARPU • Build channel partnerships with venues • Position FC for future phases – P2P Casino Confidential - Do not distribute

  17. Appendix Confidential - Do not distribute

  18. Appendix: Market size Market by the numbers: • Fantasy sports generated $3B - $4B of revenue in 2012 • Nevada’s legal sports wagering represents < 1% of all US sports betting • Gross revenue for Nevada’s sports books was $170.0m in 2012 on $3.45B of wagering • The illegal US sports betting market is $380B yearly and $19B in revenue Confidential - Do not distribute

  19. Appendix: Player Acquisition We’ve developed a pipeline of media partners that reaches an audience of more than 1.5M via social media e.g. Twitter, Facebook, and Instagram. • Leanna Decker – Model, Blogger • Brittney Palmer – Model, Blogger • Bert Fentress – Fantasy Sports Guru • @blackredsoxfan – MLB Pro Blogger • @rotofanatics – Fantasy Sports News • @mlbinjurynews, @hoopsinjurynews – Sports injury news and updates • Chris Myers – Fox Sports announcer covering NFL, MLB, and Nascar • @fantasycouch – Fantasy Sports Guru • Lysette Tan – Blogger, Model • Kourtney Reppert – Model, Blogger • Sophia Santi - Model, Blogger • Sports Media 101 - 120 micro blog sites • Jordyn Taylor – Singer, Blogger • Sports Fan Addicts Sports Bar, Honolulu - Bar Confidential - Do not distribute

  20. Appendix: Legal Fantasy sports is considered a game of skill and received specific exemption from the 2006 Unlawful Internet Gambling Enforcement Act. Additionally, Fight Club has gone further to ensure the legality of its services and compliance with federal and state laws by conducting: • 50 State legal review by recognized gaming expert Tony Cabot showing strong legal standing in 45 states • Federal legal review by I. Nelson Rose Confidential - Do not distribute

  21. Appendix: Market activity The fantasy sports and gaming industry has been brimming with activity. • Select Recent M&A Activity: • Bignoggins acquired by Yahoo! – July 2013 • Double Down Casino acquired by IGT for $500M – January 2012 • Playtika/Slotomania acquired by Caesars for $160M to $180M – January 2012 • BetFair successful, $2.4B IPO (UK) – October 2010 • Select Recent Financings: • Topline Games $25M Series A – June 2013 • DraftKings $10M Series A & PE – May 2013 • FanDuel $11M Series C – January 2013 • Starstreet $600K Angel/Series A – February 2012 Confidential - Do not distribute

  22. Appendix: Patents filed Confidential - Do not distribute

  23. Appendix: Patents filed (cont’d) Confidential - Do not distribute

  24. Appendix: Web assets List of Domain Names • FightClub.com • Pick5.com • P2Pgambling.com • P2Pcasinos.com • P2Pcraps.com • P2Pslots.com • P2Pbaccarat.com • P2Proulette.com • P2Pkeno.com • P2Pbingo.com • P2Ppaigow.com Confidential - Do not distribute