Bullpen Capital’s general partner and co-founder, Paul Martino, created a reputation for himself in sports by supporting FanDuel when it was still in its infancy.
He put his money into FanDuel when it had a revenue of $1 million and only seven employees. Flutter Entertainment (PDYPF), valued at $29 billion, now owns FanDuel.
Martino’s “off by one” investment technique is used by FanDuel, which looks for interesting firms that are “off by one” factor, which might imply the company is based in a place that no one observes or is in a segment that everyone else in the industry dislikes.
Martino’s experience investing in sports and gaming gave him access to some of the most promising early firms looking for post-seed capital. Even despite the legalization of sports betting in the United States, it has been difficult for Martino to invest in this field in recent years.
In 2018, 2019, and 2020, they made essentially no investments in sports betting, gaming, or gambling but invested in six projects in 2021, Martino stated. He further said that “cool stuff” happened finally. For more information on bitcoin sports betting, visit the linked article.
Cryptocurrencies are splurging
Some may believe that “cool stuff” refers to cryptocurrency. After all, it was the prominent subject that drew the investment community’s attention last year.
According to CoinDesk Research’s annual report for 2021, venture capitalists invested more than $ 23 billion into the sector last year, more than in the preceding four years combined.
It has also caused a stir in the sporting world. Crypto exchange FTX has signed agreements with sports superstars such as Steph Curry of the NBA and Tom Brady of the NFL. At the same time, Crypto.com obtained the Staples Arena’s naming rights.
Several cryptocurrency companies are also running commercials during the Super Bowl this year. According to the Wall Street Journal, NBCUniversal is looking for $6.5 million for a 30-second ad that will air during the NFL championship game on February 13.
Despite the linkages between the three domains, Martino remains cautious when most venture capitalists are rushing towards Web 3.0.
Martino added that they are cautious about crypto, as they don’t believe it’ll be the next great thing. They are in the ‘hype phase’ right now. Before it can expand properly, it has to tumble down to earth.
According to Martino, the synergies between crypto firms and sports presently focus on enterprises that need to draw a large audience’s attention.
You can’t showcase ads on Netflix.
Almost no one goes to the cinema, Martino added. So, users with a lot of cash will buy live sports.
Martino believes that Crypto.com’s ad featuring Matt Damon and the company’s marketing blitz reflects the crypto industry’s enthusiasm. He believes that a correction is unavoidable.
Martino stated they would prefer not to get caught up in the excitement. He believes that ad will go down in history after seeing Matt Damon all weekend on the wildcard games.
Cryptocurrencies like Bitcoin (BTC) and ether (ETH) have dropped more than 10% in the last five days since Insider talked with Martino on Wednesday. More speculative alt-coins, such as Cardano (ADA), were impacted much harder, falling by 24 percent.
This drop comes as the NASDAQ, a technology-focused index in the United States, enters a correction zone after losing more than 10% from its previous high. Many investors are avoiding the NASDAQ’s costly growth stocks as the Federal Reserve tightens monetary policy and raises interest rates.
Martino takes a similar strategy when it comes to the broader sports betting sector in the United States, which is getting increasingly competitive. Sports betting, according to Martino, is a low-margin enterprise. He believes that companies that mix sports betting, online casinos, and iGaming will be the most successful.
He calls attention to The King of Pitaco and Draftea as two under-the-radar sports-related businesses.
