Part 2 : how we did 15 startups in 21 months.

Here is what we built and launched.

  1. Its extremely low margin — hard to build a big business when you’re running sub 5% gross profit margin. Ours is much higher, but long term will trend towards the same margin as Fanduel and Draft Kings. Especially Draft Kings — after accouting for promotions, they’re running at sub 5% margin. Investors haven’t figured this out yet / or are in denial. Scale will solve things. Or once the competitive pressure eases. Ya right. Lets see how this plays out.
  2. The DFS business is built on high rollers, and in this case, they are very price sensitive. Any new site offering a lower margin will attract users, especially if it has liquidity. These users have very little loyalty. Hard to build out enterpise value when your most power users are so fickle.

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Builder of things and ideas.

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Murtaza Hussain

Murtaza Hussain

Builder of things and ideas.

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