Invest in 401Sports

401Sports is a cool new fantasy sports stock market game where you can buy and sell virtual shares of athletes and make real money. (As opposed to the other stock market where you can buy shares of your cousin Stevie’s dating app for house plants and make no money.)

Users are investing in sports in a fun and profitable way like they’ve never been able to before.

Why did we start 401Sports? That’s easy.

We’re that fan. The one who’s not satisfied with everyone in matching wigs and t’s. True fans (from casual to the extreme) want more. So do we.

We identified an obvious problem with daily fantasy sports ("DFS") and sports gambling. And that problem is significant. 

Over 90% of users lose their money on traditional sports gambling and fantasy sites (1).

That number is unbelievable and unacceptable to us.

Losing sucks.

That’s why we started 401Sports.

Our mission is to change the dynamic of fantasy sports and to offer our users more opportunity and less risk.

Our vision is for 401Sports to become the most fun, passionate, engaged and the most profitable fantasy sports community in the world.

1. Sports Information Traders

Build Your Portfolio
Fans use their sports knowledge and skill to buy shares of athletes most likely to succeed in our scoring system.

We issue virtual shares of athletes from several different leagues through an IPO process. Users can purchase on release day through the IPO Center and/or on the secondary market through the Trading Floor.

Watch, Trade and Win
Just like fantasy sports, athletes generate value through their play. Shares are bought and sold on the secondary market through real-time trading, driving prices up or down. You know…buy low, sell high.

Manage Your Earnings
Users make real cash when they sell shares on the open market or redeem them for guaranteed book value (1) at the end of an athlete’s career. They may withdraw earnings at any time or re-invest in the market.

(1) Just like fantasy sports, athletes generate value through their play. As they accumulate achievements in competition, their book value increases. Book value never decreases and is always guaranteed.

We’ve got four revenue streams at 401Sports.

IPO
IPOs are big for us. 20-25% of all IPO sales are revenue for 401Sports. We run a mix of up-and-comers, solid squad players and stars. We even have a GOAT on the Trading Floor. When we IPO superstars, each one has the potential to generate anywhere from $5-20 million in revenue.

Transaction Fees
We don’t rake like most DFS and gambling sites. Instead, we collect a 1% fee from both the buyer and the seller for every trade. The average order is well over $100, so every trade is at least $2 in profit.

Investments
Remember how we said we guarantee payouts on Book Value at the end of an athlete’s career? We prepare for that by putting 70-80% of all IPO revenue into segregated investment accounts. Depending on the length of an athlete’s career, those funds will be kept in growth accounts for 10-15 years. We project roughly a 5% annual growth rate, creating massive income.

Licensing
As we expand to new markets, opportunities to license 401Sports across the globe creates additional revenue streams for us.

Guaranteed Payouts
We’re the only site to offer a guaranteed payout on a book value model that never decreases.

Win-Win Model
We’re protected by the long-term nature of our payout model, where both the company and our users benefit.

100% Secure & Legal
This one is longer-term, but it’s important. Building 401Sports means building trust with our users. Once they realize their money is safe and growing, users stay on the site longer and build an engaged, active community.

These all have a positive effect on our marketing effort as well. Acquisition and retention costs run high in our space (close to $400 per person for most). By reducing these costs by nearly half over two years, we increase our profits while we improve our game.

There are a few fantasy sports games that use a similar “stock market” approach, but 401Sports offers our users more ways to play. You can use a day-trader strategy to buy and sell for quick turnarounds. You can play a single season and watch as your portfolio grows. Or you can play the long game and cash out at the end of an athlete's career.

And that’s where we break away from the pack even more. We guarantee a book value payout when athletes retire.

That makes 401Sports the only fantasy sports game to offer a low-risk, high-reward opportunity. Like we said, we’re different.

The market is huge. And growing.

“The fantasy sports market is expected to register a CAGR of 16.9% over the forecast period 2022-2027. The increasing popularity of players in various sports, growing investment in internet infrastructure, and the launch of fantasy sports applications are the primary factors that will offer immense growth opportunities to the market.” [Mordor Intelligence]

Globally, fantasy sports and sports gambling is a $3 Trillion industry. (1)

In the US, alone, legal sports gambling was a $22 Billion industry in 2019, up from $5 Billion in 2018. (2)

It is estimated by a certain league commissioner (with glasses and a beautiful bald head that we probably should not call out by name) that the illegal gambling market is close to $400 Billion per year. (3)

Our proprietary tech and groundbreaking game put us in an excellent position to tap into this enormous opportunity.

1. Casino.org
2. SportsHandle.com
3. PR Newswire

We launched in August with our beta version of the website (https://401sports.com). Marketing efforts were limited as we first wanted to work out a few kinks to ensure the platform was stable and the game was as compelling and profitable as we anticipated.

Turns out it is. Check out some of this data. We’ve got a few GOAT stats, too.

We knew users would see the potential for growth quickly, but we underestimated their early commitment levels. The average deposit per user has been ten times higher than original projections.

And even though we had stocks on the market that ranged in price from $0.25 to $50.00, the average price per trade was $179.00 - more than two and a half times what we thought it would be.

Engagement is always a true sign of a healthy online community. Our users bought and sold two times more than we expected.

With a world class Net Promoter Score (“NPS”) of 71, our community isn’t only engaged, they’re extremely satisfied with 401Sports.

All of this points to 401Sports being a solid investment.

Throughout the beta phase, our marketing efforts were focused on all 401Sports social media platforms and weekly email campaigns.

As we gain investments, our marketing efforts will grow aggressively. Our primary focus will be on growing our community through user acquisition on digital and mobile platforms as well as streaming apps.

Social media will be a key tactic for us. We’re already active on Facebook, Instagram, Twitter, LinkedIn and YouTube, but we know activating Reddit, TikTok and Snapchat (coming soon) communities will be big for our growth.

We’ve also got contacts at all of the major sports leagues and player associations that will help us develop partnerships to show potential investors like you that we’re an authentic, trustworthy brand.

And don’t forget about influencers. Let’s just say that 401Sports has friends in cool places. Look for us to get those friends to help us tell our story. (We promise we’re not being coy or trying to be cool about the famous people who we’re working with. We just can’t share names yet, but we will tell you as soon as we can. Promise.)

You made it this far into the pitch. Thank you. Now comes the part where we tell you how we’ll use the funds we hope you invest.

We told you we weren’t going to mess around with marketing. We are getting after it. 

• Sixty percent of our budget is dedicated to user acquisition, brand awareness and partnerships. 
• Thirty percent will focus on product innovation in our game so that we’re always surprising you with cool new stuff. 
• And that lonely ten percent? That keeps the lights on, as they say.
  

We believe in the power of sports. To be sure that generations continue to learn and grow on the field/pitch/court/rink/course and beyond, up to 15% of 401Sports profit will go to communities across the globe to support programs that encourage and empower kids to play.

Everybody knows that championship teams finish strong. And here we are at the end of regulation play. We hope we’ve told the story of 401Sports clearly, effectively and maybe made you smile once or twice along the way.

We threw a ton of information at you. So let’s distill it all down to a few points for you to remember: 

      1. Everybody likes sports. We have universal appeal.
      2. We are committed to growth - of our game and user portfolios.
      3. We are a team of passionate, committed experts in our fields.

Thanks for your time.

The 401Sports Team