New technology from startup ventures is transforming the sports industry. The mission of this series will be to introduce startup companies in the sports technology space to a broader audience and allow CEO’s of new ventures to tell their story.
Company: PredictionMachine
CEO: Paul Bessire
Headquarters: Cincinnati, OH
1. What is your elevator pitch?
140 characters, please. Leader in simulation and predictive analytics before and during sporting events. Technology that brings “so what” context to sports data.
2. Problem & Solution
We were compelled to start this company in 2010 because we knew that we could build and provide the best technology to aid fans, fantasy players, media, teams and bettors to make smart decisions using an objective approach to predicting outcomes of sporting events that accounts for the interactions of all the variables in a game.
When I first started simulating games professionally (2004 NFL season), it took almost a half an hour to simulate one game 50 times, which is not enough of a sample to really do anything. By the time, we made it to our first NFL season on PredictionMachine.com (2011), we could simulate all 267 regular and postseason NFL games 50,000 times in just under 10 seconds to project scores, Super Bowl chances, fantasy stats for every player and more.
The first problem we set out to resolve with that technology was to educate and empower fantasy players and bettors, many of which were getting their information from less-than-reputable, content sources. Media companies barely knew what to do with fantasy at the time and would not touch gambling (we have come a LONG way in six years).
Looking at each game objectively – before and during the contest – with automated technology allows us to have answers on how likely just about anything is to occur within the course of a game as well as the value of every play and every player. As with any small company and evolving industry, while our core technology has remained the same, the problems we are addressing with it now evolve.
We now handle simulations for every game in the NFL, MLB, NBA, NHL, college basketball (DI), college football (FBS), any horse race in North America, international soccer and at least six top soccer leagues. That’s over 50,000 events every year – with a team of six full-time employees. Automation – with good tech and solid data – is the key to scale.
3. Market – your target market and the overall market
Our target market with the company for its first several years was simply full season fantasy players and bettors. While that, consumer business remains strong and growing, daily fantasy players and game providers have emerged as a major market for this type of subscription information, while teams, media, agents, leagues, gaming companies and fans are all receptive to and interested in this information.
I have media execs who reach out to me wanting to know how likely games are to be close straight-up or against-the-spread. Teams want to know how valuable it is to simulate a game with and without certain players or which players could be added to the team (draft, free agency, etc.) to improve and by how much. Agents can put real dollar amounts around this information as well.
We even have relationships with retail companies who want to know the chances of certain teams playing or advancing in the playoffs because sports drives retail. Ticket agencies are obviously interested for the same reasons. And fans, well they just want to know how likely their teams are to win so they can appropriately prepare themselves for each game.
4. Business Model – how do you make money?
On the business-to-consumer side, people subscribe to our information which includes player and team projections for each game, which includes the likelihood that a team will win or cover the spread and what that means to one’s bankroll as well as in-game, real-time projection analysis and daily fantasy tools (that we co-created with Dayton, OH based Perduco Sports). We also have licenses in each of the markets described above, almost all in a white-label fashion.
5. Management Team – with titles
Paul Bessire, CEO and General Manager
Joel Bessire, CTO
Dan Zucker, VP Business Development
John Ewing, Director of Research and Analytics
6. If you could go to any sporting event, what would it be and why?
A World Series game at Wrigley Field has to be the answer. I have been to pretty much any venue that I would like to attend. It’s all about atmosphere and historical context for me and it would be tough to miss a Cubs home World Series game in their first World Series of my lifetime.
Grant Son executed this interview with Paul.
Grant is a proven innovator and champion in both large corporations and entrepreneurial environments. Professional experience includes serving as CEO of two digital ventures – SchoolSports (top-10 sports website acquired by ESPN) and Greater Good Ventures – as well as senior roles with iconic sports brands such as CBS, the NFL, and Sports Illustrated. MBA in finance from Columbia and BA from the University of Pennsylvania. Thirty years of experience, including 20 years in digital media. Board member and advisor to established companies and more than 20 start-up ventures.
Attended every major sporting event, including six Super Bowls, World Cup Soccer, World Series, NBA Finals, Stanley Cup Finals, championship boxing, and two Olympics.