Business Description

Scrimmage operates in the sports betting industry as the broker between the sportsbook and the sports bettor. The sports betting market is new, quickly growing, and very inefficient. We greatly simplify the sports betting process, from getting the bettor the best price available and telling them where to place the bet, to tracking a complete history of all of their bets from all of their sportsbook accounts in one place. Additionally, our provide content aggregated from over 2000 sports news sources that pairs with the ability to make quick betting decisions. We will expand our content offerings in future developments with a freelance sports blog that will allow writers and content creators to monetize their work.

Problem

The process for placing and tracking a sports bet is highly inefficient and time consuming. For bettors with more than 1 sportsbook account, which is a majority of sports bettors, they need to separately check each of their sportsbook accounts to determine where the best price is available and manually record the details of the bet. By the time this is done, the price has already moved and is no longer available. If you were an active stock trader you would never accept this, and sports bettors are beginning to demand the same conveniences.

Solution

Scrimmage greatly simplifies the sports betting process. We automatically sync data from each of the bettor’s sportsbook accounts, directing the bettor to the sportsbook with the best price while simultaneously recording the details of the bet onto our platform. We are the start and end of every bet, one ledger for their entire betting history.

Business Model

Initially, Scrimmage’s revenue model will be affiliate marketing with top U.S. sportsbooks. We are already licensed in the majority of states with legal online sports betting and already have contracts with some of the largest sportsbooks in the U.S. These sportsbooks will pay us around $200 for each sign-up we bring them, and our app and website are geared toward maximizing this number. It is in the sports bettor’s best interest to sign-up with as many sportsbook accounts possible. In the future we intend to expand our content offerings, allowing independent writers to receive subscription and advertisement revenue, with Scrimmage receiving a commission from this.

Market Projection

Scrimmage’s addressable market is 40M current online sports bettors in the U.S. This is expected to grow to 80M over the next 1-3 years as online sports betting legalizes in the U.S. Roughly half of these bettors are already using tools that help improve their sports betting process and we know there is demand for the product we have created.

Because of this growing market, there will be about 20M sportsbook app downloads in 2022. Sportsbooks are willing to pay on average $200 per affiliate sign-up which means an addressable market size in 2022 of $4B.

By 2025, we estimate that we could have 3M users (3.75% of the future expected online sports betting market), and account for 25k sportsbook sign-ups (0.125% of 2022 sportsbook app downloads), which would result in $5M in annual revenue.

Competition

We are confident that the future of sports betting will mimic the trajectory of retail stock investing. The bettors will begin and have already begun to take sports betting more seriously, looking to utilize tools that save them time and help them make more money. The process for placing and managing sports bets in highly inefficient and Scrimmage’s sole focus is to simplify that process so the user will decide that we are a product they can’t live without. We want to completely eliminate wasted time for the bettor and give them all the tools they need to maximize their profit. Our competitors provide some of these tools, but not to the extent that Scrimmage does, and not at the same price point. Their thinking is more antiquated, providing things like “top picks” and in house content that serves their own agenda over the bettor. Bettors want to be involved in the decision making process and want a community around them. That is Scrimmage.

Our primary competitors are:
1. The Action Network – https://www.actionnetwork.com/
2. Betsperts- https://www.betsperts.com/
3. Betstamp – https://betstamp.app/
4. Bettingpros – https://www.bettingpros.com/

Traction & Customers

Scrimmage’s app is pre-launch, while the desktop has been open to a small number of beta testers for the past 2 month. Up until this point, the team has done a tremendous job with our organic social media following, with over 120k followers across all channels. We have done this by providing content that is related to what will be available on the application and we will continue to grow our reach in this way. Our product was created by sports bettors and has been continuously tested by sports bettors throughout the development process.

Investors

Investments up until this point include about $250k from a combination of founder’s capital, friends and family, and an investment from the Techstars Sports Accelerator

Terms

Scrimmage will be offering a SAFE agreement as described below in this Regulation Crowdfunding offering:

$6M valuation cap

The security being offered is a Simple Agreement for Future Equity (SAFE), therefore, investors will not be receiving equity at the time they invest in Scrimmage through this SAFE. Instead, they will receive equity at a later date once the events outlined in the subscription agreement occur.

If there is an Equity Financing before the termination of this SAFE, on the initial closing of such Equity Financing, this Safe will automatically convert into the greater of: (1) the number of shares of Standard Preferred Stock equal to the Purchase Amount divided by the lowest price per share of the Standard Preferred Stock; or (2) the number of shares of Safe Preferred Stock equal to the Purchase Amount divided by the Safe Price.

If there is a Liquidity Event before the termination of this Safe, this Safe will automatically be entitled, subject to liquidation priority, to receive a portion of the proceeds, due and payable to the investor immediately prior to, or concurrent with, the consummation of such liquidity event, equal to the greater of (i) the purchase amount or (ii) the amount payable on the number of shares of common stock equal to the purchase amount divided by the liquidity price.

If there is a Dissolution Event before the termination of this Safe, the Investor will automatically be entitled (subject to the liquidation priority) to receive a portion of Proceeds equal to the Cash-Out Amount, due and payable to the Investor immediately prior to the consummation of the Dissolution Event.

Risks

This offering involves a SAFE (Simple Agreement for Future Equity). Please note, that upon your investment you do not immediately earn an equity stake in Scrimmage Co. SAFEs involve a triggering event that must occur for your investment to convert into equity. It is critical that investors read the subscription agreement prior to investing in a SAFE to understand all of the terms of the security.

See Offering Statement; A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.
In making an investment decision, investors must rely on their examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.

These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.

Neither PicMii Crowdfunding nor any of its directors, officers, employees, representatives, affiliates, or agents shall have any liability whatsoever arising from any error or incompleteness of fact or opinion in, or lack of care in the preparation or publication of, the materials and communication herein or the terms or valuation of any securities offering.

The information contained herein includes forward-looking statements. These statements relate to future events or future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties, and other factors, which are, in some cases, beyond the company’s control and which could, and likely will materially affect actual results, levels of activity, performance, or achievements. Any forward-looking statement reflects the current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. No obligation exists to publicly update or revise these forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.