|1||🎓🌐 Team. World renowned sports science experts, multiple startup veterans with successful exits.|
|2||🚀💰Traction. Several Pro, 130+ colleges & numerous travel teams and 1,000s of individual players.|
|3||📈Market. In just 6 sports, there is a huge $33B global market of 100s of millions of core users.|
|4||🔥Techstars portfolio company. Melbourne Sport Tech program a world renown business accelerator.|
|5||🤩😍Customers love gameSense. Product-market fit score over 55. Passionate customers spread word.|
|6||🔥🚀 Hot, growing market. Sport tech and E-Sports are exploding!|
|7||🏆Results. Our amateur thru pro users experience dramatic performance improvement.|
|8||🌎Democratization. Players of all ages can get an edge, anytime, anywhere and achieve their dreams!|
I am investing in GameSense because of: 1) the company - great product made by a great team; 2) market - better performance in sports via science; and 3) exit potential - numerous potential acquirers at attractive multiples for great investor returns. The team has done a great job building a MVP and generating significant sales with it. Once they get the funding, they are well positioned to add features that will increase value to customers; and will be able to add marketing and sales resources to scale revenue.
We are gaming cognitive training. Our technology revolutionizes how athletes get better. From elite to beginner, we train fast reactive decision-making skills, 100x more effectively with dramatic results.
In the immortal words of Yogi Berra, “The game is 90 percent mental. The other half is physical.”
The physical part is amply covered in sports today, with countless hours and significant funds invested in drills, reps, weight training, and more. Athletes spend thousands of hours practicing the fundamentals. But most overlook the mental aspects of the game.
It’s time to rethink the way athletes train. The status quo is not good enough. To excel in any sport, an athlete must master cognitive skills as well as physical skills.
All competitive athletes are looking for that edge, a differentiator that vaults them ahead of their peers. Cognitive training gives them the edge they’re looking for and is the real separator between good and great players.
GameSense Sports is paving the way to a new frontier in athlete training. Built by a team of renowned sports scientists who have consulted with top teams and organizations all around the world, gameSense digital apps train the brain, teaching skills that can transform an athlete’s game, from faster reaction times to better decision-making, to seeing plays before they happen.
Physical drills can certainly help to improve reaction times and decision-making. The ability to hit a baseball is not a skill someone is born with, neither is returning a 90-mph tennis serve. It takes thousands of hours of practice and tens of thousands of reps to achieve excellence. That amount of repetition is costly, inefficient, and can result in injury.
gameSense supercharges the learning process, using proven methods to offer athletes significant, measurable, quantifiable results.
Available anytime, anywhere – regardless of weather, injury, or any other restriction – gameSense mobile apps help players develop their cognitive skills over 100 times faster and more efficiently than physical drills.
With gameSense, players can watch and interact with thousands of live-action videos, in effect banking these skill-enhancing brain reps and building a cognitive database to access during competition. And with varying levels of difficulty and focused personalization, gameSense brain training creates increasingly greater cognitive challenges for rapid, efficient improvement. Players get immediate feedback and can see their progress, building confidence, and creating a positive feedback loop.
If you can measure it, you can improve it. In an era when data and analytics reign supreme, gameSense generates reams of valuable information to help inform players, coaches, and recruiters. Never before have there been metrics around a specific cognitive skill within a given sport – until now!
gameSense can help change the world by democratizing how athletes everywhere, of all ages, those with means and those without, get better like never before! Now everyone can benefit from expert training and testing techniques typically only available to elite athletes.
Our product-led growth (PLG) strategy starts with the individual youth segment of our market. We offer gameSense products free to young athletes who can then drive awareness by sharing their performance and stats to social media and inviting friends to join and play, without needing a credit card from their parents. Players later upgrade to premium paid subscriptions, either as individuals or at the team level, to face more challenging opponents and enjoy additional features.
Revenue is generated from monthly and annual subscriptions to individual players and teams. We also sell baseline standardized cognitive tests (like the SAT) with respect to specific fast-reactive decision-making activities, such as pitch recognition or serve recognition. And we sell re-take tests to reflect a player’s post-training progress. In the future, we anticipate white-labeling our products, selling derived data, API access, and registration fees for e-sport tournaments and leagues.
We plan to scale by partnering with large organizations and federations to distribute our products. Moreover, because people are passionate about sports and our technology that dramatically help improve an athlete’s performance, we are building an army of brand ambassadors to help get the word out efficiently. We also sell bulk subscriptions directly through other channels to facilities, academies, clubs, and travel organizations.
To further drive awareness, distribution, and engagement, we plan to publish our products on hosted e-sports platforms. We will also host online e-sports tournaments and leagues.
gameSense launched its first commercially viable product in the baseball market in 2019, followed up by a fastpitch softball product in 2020. A prototype for the tennis market was developed in 2020 and is currently being evaluated by Tennis Australia, the governing body and operators of the Australian Open, for use and a possible distribution partnership.
Due to their standing as renowned experts in sports science and in the sports industry, our founders leveraged their connections to develop and test early minimum viable products (MVPs) with several MLB/MiLB organizations and various college teams.
After launching our MVP and with no paid advertising, within the last 18 months we have worked with MLB organizations, Olympic teams, over 100 colleges, and numerous of travel teams & clubs, and we have logged tens of thousands of individual downloads. About $250,000 of revenue was generated in 2019.
I hope you and your family are staying safe and healthy during this crazy time. I wanted to circle back with you and let you know how much we enjoyed game sense, and we definitely want to implement it again for this next year. Although it was an abbreviated season these were our improvements from 2019-2020…
1. 7 out of our 8 returning players increased their OPS from 2019-2020 for an average of 74 points.
2. Team OPS went up 36 points
3. Extra base hits per game went up by 11%
4. Walks per game went up by 27%
5. HBP per game went up by 145%
6. K’s per game went down by 12%
It’s also important to note that these numbers were obtained with only playing our non-conference schedule, which is significantly more challenging than our conference schedule.
With school starting in a couple weeks we would like to get set up and start the fall with game sense…Please let me what you need from me to get this going again.
Jason Laws, Assistant Baseball Coach
High Point University
The market for gameSense products is massive and global. Merely looking at six sports, we estimate there is a $33 billion revenue opportunity, or Total Addressable Market (TAM), for our products.
It is important to note that this estimate is based on the number of “core” sports participants, meaning players who regularly play a sport. For example, playing 14 baseball games a year makes a player a core participant, not a casual or occasional one.
Athletic cognitive training is a “blue ocean” opportunity. The few direct competitors in the space fall into two broad buckets: those that portray an athletic skill as animation or virtual reality (VR), and those that use real video, like gameSense.
Because VR/animation products are not real, they are minimally effective in helping an athlete read the subtle visual clues or “tells” that are critical to making fast-reactive decisions. In addition, the few competitors who exist lack the grounding as subject matter experts in sports science, business and technology experience that differentiates the gameSense team.
After being selected for and completing the exclusive TechStars Melbourne sport technology accelerator program, gameSense is poised for rapid growth and has ambitious goals. By the end of 2021, we plan to grow our user base to over 250,000.
Having conducted surveys and interviews with hundreds of customers, gameSense has a user-informed roadmap to make significant improvements in 2021, including plans to gamify our products, driving user engagement and growth. We will also dramatically increase our marketing and sales operations, building the pipeline well beyond 2021. We will also launch our latest product commercially into the tennis market.
Driving the numbers:
o Major product upgrades
o Launch tennis product
o Deepen existing sport (BB/SB) penetration
o Capital raise: Series A
o Expand features/capabilities of existing products
o Grow market share for existing products
o Open up new revenue streams (e-sport tournaments & leagues, data sales)
o Add new sport
o Capital raise: Series B
o Grow market share
o Broaden revenue streams
o Add new sport
GameSense Sports, Inc. has financial statements ending December 31 2019. Our cash in hand is $45,760, as of November 2020. Over the three months prior, revenues averaged $8,400/month, cost of goods sold has averaged $4,200/month, and operational expenses have averaged $49,800/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
For athletes/players of all levels - our brain training app helps athletes improve their in-field decision-making faster & better - giving them the edge to move up to the next level.
In 5 years, we hope to have 500,000 paying subscribers, at least 5 sports, have gone international, and a $50M run rate. These projections cannot be guaranteed.
gameSense Sports, LLC was organized on 10/31/2015 in Colorado. On 02/14/2020, the company fully converted into a C Corporation in the state of Delaware. The surviving company is gameSense Sports, Inc.
Since then, we have:
Historical Results of Operations
Our company was organized in February 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $96,000 in debt, $20,000 in equity, $100,000 in convertibles, and $155,000 in SAFEs.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 4 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 3 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
gameSense Sports, Inc. cash in hand is $45,760, as of December 2020. Over the last three months, revenues have averaged $8,400/month, cost of goods sold has averaged $4,200/month, and operational expenses have averaged $49,800/month, for an average burn rate of $45,600 per month. Recent COGS were unusually high due to a significant amount of new content being added to our products. Our intent is to be profitable in 24 months.
Since the date of our financials, we have pivoted quite a bit. Specifically, we have gamified our apps much faster than we expected. This means we have put more resources intro product development. Our recent revenues have decreased as compared to 2019 due to COVID and focusing the on the Techstars accelerator.
With the capital raised, we plan to improve our products (including launching the Tennis app, a new market) in 2021. Thus far, we have about $1.5M of prospective revenue in the pipeline for 2021 and growing. We don’t expect to be profitable in 2021 and anticipate to raise additional funds in or about Q3 2021 to continue our growth. While we expect significantly more growth in 2022, we may be profitable in 2020 depending on our growth trajectory.
In six months, we hope our monthly revenues will be $30,000/month and expenses will be $60,000/month, although this is not guaranteed.
For additional sources of capital, we can solicit investors in our network and bank loans.
The Company has created its budget based upon its current projections. However, the Company cannot predict all costs. Projected costs may be too low and additional funds will be required to meet those needs, including increases in development, support, and other expenses. The differences between expected revenue and expenses could differ from any projections, and those differences could be material.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
The Company requires highly-skilled developers to work on the software. It may be difficult to find and retain developers with sufficient skills, thus causing delay or failure of the project.
The Company’s anticipated product and services are currently dependent upon the four founders and their skill sets. If a founder stopped contributing services to the Company or its product, it may be difficult and potentially not possible for the Company to continue.
This is a relatively new type of product and service. The Company cannot guarantee that all players/users will find the product and service helpful, or that the market in this area will grow as expected.
The Company currently has two early commercially viable products (i.e, baseball and fastpitch softball) that are currently designed to yield performance improvement results to users who play those games outside when the products are used as recommended. With the advent of the current pandemic or any new one, the Company may have setbacks, need to substantially change or rescale the scope of its product or services, and cannot guarantee any specific business performance results.
Dr. Peter Fadde is a part-time officer. As such, it is likely that the company will not make the same progress as it would if that were not the case.
Current video content acquisition involves an ever-evolving collection of rights and licensing from individual subjects, leagues and/or rights owners. Although the Company does not anticipate insurmountable issues or costs with its software in acquiring future rights, it has no control over how digital rights or licensing acquisition may change in the future.
The Company has fewer resources than larger companies. Should any major company decide to compete directly with the Company, such a larger company may be able to produce a superior version of the products and services.
Because we analyze players’ specific cognitive skills leading to deep insight of a players strengths and weakness to perform, there is a possibility some players and teams would avoid the Company’s services for fear of providing that information to the Company through its services.
The value and sustainability of the Company’s products and services are unproven at scale. This may lead to: too many competitors upon market entry, too few customers, difficulties retaining customers long-term, or the Company being unable to effectively reach potential customers.
The Company might not be able to protect core ideas behind its product and competing business may or may already have used the idea to create competing products, thus impacting revenue.
The Company has only minimally invested in advertising therefore its products and services are not widely known and may impact growth and revenue.
A significant share of the Company’s assets are intangible assets, including the Company’s intellectual property. Some of these assets are open source and therefore not protectable.
The Company’s current core technology includes a combination of proprietary and open source code. It cannot prevent others from using the open source portions of code. To the extent that open source code may be used or borrowed by other companies or individuals, the Company’s competitive advantage, if any, may be compromised.
Failure to protect intellectual property that is protectable may impair the Company’s competitive position.
The Company may require additional financing to execute its business plan and fund operations. Additional financing may not be available on reasonable terms or at all.
There is uncertainty regarding the Company’s future financial and operating results. Moreover, in light of the existing or any future pandemics, a greater degree of uncertainty exists which may impact the Company's future and operating results.
The Company may suffer uninsured losses or losses as a result of Acts of God. The Company is minimally capitalized and has no assurances of immediate profits. The Company does not anticipate making distributions available for the foreseeable future. The Company will have absolute discretion over the use of proceeds from this Offering.
If the Company delivers products or services that are defective or flawed for whatever reason, whether for reasons within or outside of the Company’s control, the Company’s credibility may be harmed, market acceptance of the product may decrease, and the Company be exposed to liability.
This document makes no attempt to summarize the federal or state income tax consequences of this Offering. Accordingly, investors must evaluate for themselves the income tax implications that attach to the purchase and subsequent sale of Notes and consult their tax advisers in this regard.
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