2019 investment overview · team to 20 ftes, united event production and back office processes....

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2019 Investment Overview

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Page 1: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

2019 Investment Overview

Page 2: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

SummaryHigh School Esports League is the fastest growing and most experienced high school esports league in the world.

With over 1,800 high schools and 44,000 students, 7 years of successful league play, more players than all other competitor leagues combined times 10, and partnerships with companies like Microsoft, HSEL is poised to take over the most lucrative demographic in the esports world all on a proprietary platform.

Page 3: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

Problem1. Students don’t have a way to play games competitively, in an organized

environment2. Schools lack the infrastructure, funding, technology & publisher

relationships to deliver a way for their students to compete3. Students need a way to turn esports into a career; professional teams,

college scholarships, tech jobs, and career paths in the industry. 4. Schools have trouble increasing attendance, engagement and

participation from this segment of students

Page 4: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

The Solution● HSEL’s technology platform: enables high schools to have an esports

league experience that delights both students and schools.

● We automate and organize league infrastructures for students and schools across the US

● Provide career opportunities: scholarships, recruiters, data, relationships

● Our STEM programs: Microsoft educational programs etc.

Page 5: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

Business Model● Core Product: League contracts with schools to operate their league & provide hardware● Sponsorship/Viewership Revenue: The most coveted demographic (Gen Z) for advertising spend, big brands etc.

(Mountain Dew, Coca Cola, American Express, Red Bull) ● Own the Data: Exclusive player data for collegiate/professional esport teams looking to recruit professional

players at their peak professional age- right out of high school ● Recruiting:

○ Largest talent pool and prime age for professional esports players■ It is estimated that professional esport player contracts will soon be on par with NBA, NFL, MLB

○ Gateway for college recruiters and scholarship opportunities■ HSEL has facilitated approximately $16 million in scholarships

Page 6: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

STEM Education and Partnership with MicrosoftWith an on-going company emphasis on thought leadership, as it relates to the educational arm of esports, we announced a major partnership with Microsoft to launch a full STEM curriculum through their infrastructure in June 2019.

Results (Aug 2019):● Most popular new curriculum on Microsoft’s platform since June● 45,000 program views● Over 800 teachers have contacted HSEL to learn about forming a team

Page 7: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

The Varsity Esports PlatformVarsity Esports provides value to the entire high school esports ecosystem.

Faculty Recruiters Students Partners● Increased funding● Attendance boost● Affordable hardware● STEM programming

● Pipeline for Professional Esports teams

● Pipeline for College Scholarships

● Pipeline for adult ametuer leagues

● Competition● Comradery● Prizing/Scholarships● Hardware sales● Community● Job Opportunities

● Data● Advertising● Access to Gen Z● White label● Brand loyalty

Page 8: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

The Varsity Esports Platform

Page 9: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

TractionGrowth● 44,000 students - 3x YoY players 2018-2019 ● 1,862 schools - 283% school acquisition growth YoY● 128% more students per school YoY● Market share: 4.08% (+268% YoY)

Publisher Licenses● Cleared to operate leagues

*or in active discussions

Footprint● A footprint in all 50 states

Page 10: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

Addressable Market Opportunity

12,190,547Serviceable Obtainable

Market (USA)

$33.87ARPPU

$231,220,527Revenue

*Assumes 56% market adoption rate*Does not include sponsorship, big data or

recruiting opportunities

Page 11: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

Revenue Plan

2019$617,000

Organic Growth

4% Market Pen

2020$1.5 MM

District SalesTitle Sponsorship Sales

8% Market Pen

2021$5 MM

Scaling GrowthExponential Title

Sponsorship

15% Market Pen

Page 12: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

Competition

Page 13: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

Our TeamMason Mullenioux - Founder Facilitates partnerships and sponsorships from industry leaders such as Twitch, NACE, Respawn, Discord and NRG. Fundraising experience 600k for the Leukemia & Lymphoma Society. 7 years of esports industry experience, specifically in the high school space.

Trevor Jensen - Executive ChairmanCEO of Bullibone. Led the successful acquisition of Bullibone and is responsible for turning it into one of the fastest growing consumer product companies in the pet space.

Aaron Hawkey - FounderAaron has run high quality online Esports tournaments for 7 years. Manages and directs a team of 20. Works and plans with developers to orchestrate agile development initiatives. Hands on with the product.

Charles Reilly - FounderPoint of contact for all school administrators, teachers, and parents. Charles drives initiatives to make sure we are always meeting their needs, and anticipating their pain points. 7 years of esports industry experience, specifically in the high school space.

Steve “Jaws” Jaworski - GMCreated Riot Games’ uLoL esports program, paving the way for the current scholastic esports scene. The program’s impact includes millions of dollars awarded in varsity esports scholarships, student engagement programs launched across the game industry, and the first publisher-run governing body for collegiate esports.

Joe Blancato - Head of OperationsCreated corporate strategy as COO of Double A; doubled revenue, grew team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member at Riot Games.

Chris Heintz - Head of PublishingGames marketing veteran with over a decade of experience. Led PR at Riot Games during League of Legends’ meteoric rise, and established the player relations discipline, building trust with millions of players worldwide. After Riot, joined Amazon as head of community & esports and player relations lead.

Page 14: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

Our Advisors

Tim Suski - AdvisorFounder/CEO experience with an interest in building valuable + profitable businesses. - Co-founder of Rush Cycle: Scaled company from 2 corporate owned locations to 69+ studios in development across the US in a three year time span- Co-founder of Boomr Inc: Scaled high growth technology company in B2B Saas space which now serves businesses such as Vimeo, Roto Rooter, Farmers Insurance and the YMCA.

Yoshio Osaki - AdvisorPresident and CEO of IDG Consulting, Inc., a leading research and analytics firm in the game and esports industry.

Ken Potashner - AdvisorKen has been CEO, Director and Chairman of several companies that achieved Billion+ valuations. He has served as a director in the US and in Asia of eight public company boards in addition to numerous private boards. Ken was most recently Chairman of Newport Corporation (NEWP), which was sold in 2016 for $980M to MKS Instruments. Previously, Ken served as the CEO and Chairman of Maxwell Technologies (MXWL) and Sonicblue (SBLU).

Drew Goodmanson - AdvisorDrew is a founder/CEO, who has built and sold several companies. In 2017 he was part of the team that won the Private Equity Large Market Deal of the Year. Recently, he consolidated 10 SaaS companies into one business unit. He has led companies in a variety of markets and industries including winning INC 500/5000, CEO of the Year and Best Places to Work awards.

Page 15: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

OpportunityHSEL is looking for strategic partners to participate in a $3 million convertible note with a 2-year term at 5% interest that converts to a 10% discount upon Series A financing.

We anticipate raising a Series A financing round in 9-12 months.

Please contact Trevor Jensen for additional information. [email protected]

Page 16: 2019 Investment Overview · team to 20 FTEs, united event production and back office processes. Built PMO in Publishing and back office at Riot Games. Esports founding committee member

Use of Funds2-Year Roadmap With ~30 Team Members

TechnologyBuild a Great Platform

Sales & MarketingBring in Customers

League OpsCreate a Great Experience

OperationsKeep The Machine Moving

Grow full-time dev teamUX/Product managerPMTesting/QA

CMOHead of SalesAccount MgmtSponsorship SalesDistrict-level Sales Customer SuccessInfluencer Mgmt

League CommissionerAdministration TeamCustomer ServiceCommunity Mgmt

COOFinance & AccountingHR / FacilitiesLegal