BH

Brag House Financial Model

• Centralised esports platform: live tournament production, professional commentary, pre/post-game interviews, head-to-head collegiate competitions.
• BRAG CHAT: live fan chat / trash-talk gamification feature.
• Free membership (viewers) + paid membership (gamers - unlocks gaming rights, higher prizes, merch discounts).
• PaaS offering sold to universities (flat rate annual contract).
• Risk-free wagering and fan gamification embedded in platform.
• Positions as the only platform combining competitions, full-scale production, risk-free wagering, and social engagement in one place.
• Future: in-app game currency purchases via mobile app.

• TAM: $78.3B (Global Esports $1.1B + Global Mobile Gaming $77.2B)
• SAM: $16.1B (US market at 20% of global for both segments)
• SOM / Gross Revenue Opportunity: $474.2M–$794M (Brag House market share 5–10% of Global Esports; 3–5% of Global Mobile Gaming)
• Note: the TAM construction conflates esports streaming revenues with mobile gaming revenues - figures should be treated as directional; the underlying segment sizes are as stated in the deck.

Current monetisation streams:

1. Free membership - zero-cost; creates funnel / low barrier to entry.
2. Paid membership - $2.99/mo+ per individual member; unlocks gaming rights, higher prizes, merch discounts.
3. PaaS (universities) - flat annual contract rate per university; 1 contract signed at launch.
4. Ticket sales revenue share - % of event ticket revenue from universities.

Future monetisation:

1. In-app purchases - game currency packages (mobile app, not yet launched).
2. Sponsorships / brand partnerships - Coca-Cola and McDonald's signed for Texas Loyalty Cup; NHL, RP Sports, Calvin Klein in active discussions.
3. Content & Media Platform - described as Y5 expanded revenue stream.

Paid membership price: $2.99/mo+. PaaS contract rate: not disclosed in deck.

Y1 / Launch (2020):

• 26 universities reached (direct-to-student)
• 2,180 members total
• 30.1% paying (≈ 656 paid members)
• 1 annual PaaS contract signed
• BCGA partnership
• $XXK revenue - amount redacted in deck
• Ranked top 0.8% out of 7+ million Twitch channels in March–April beta
• 23.8% month-over-month user growth
• $6.12 CAC

Events:

• Texas Loyalty Cup (July 2021): 10 university participants, $10,000 total prize pool, partners Coca-Cola + McDonald's
• Prior: March Madness tournament at 18 universities

• CAC: $6.12
• Paid conversion rate: 30.1% of members
• Monthly paid membership price: $2.99/mo+
• Implied monthly revenue from paid members at Y1: ~$1,960/mo (656 members × $2.99)

Competitors cited:

• Barstool Sports - fan engagement only, limited gamification; no collegiate market focus.
• PlayVS - collegiate esports but limited to professionals/elite gamers; no centralised fan+gamer platform.
• DraftKings - pro betting only; fan die-hard segment; no gamer focus.

Claimed differentiators:

• Only platform with: focus on collegiate market + centralized platform connecting gamers & fans + full-scale tournament production + professional commentary & interviews + fan engagement/gamification + risk-free wagering.
• First-mover in casual (non-professional) collegiate esports vertical.
• Partnerships with major consumer brands (McDonald's, Coca-Cola) provide sponsorship credibility.
• College rivalry-based positioning creates natural community stickiness.

Founders:

• Lavell Juan (CEO/Co-founder) - corporate lawyer (Weil Gotshal), serial entrepreneur; two prior 7-figure exits ($6M soccer team TV deal; NFL financial platform sold to Big 4 Bank).
• Daniel Leibovich (COO/Co-founder) - IDF Operations Branch lieutenant; Columbia University (Financial Economics, cum laude); serial startup operator.
• William Simpson (CTO/Co-founder) - Accenture technology consultant; Industrial & Systems Engineering, University of Florida.
• Joseph Prososki (CSO/Acting CFO) - investment banking, PE (Tiger Global / Sparrow Fund, $1B+ AUM), M&A advisory, 30+ closed transactions.

Advisors:

• Peter L. Fong (Strategic Alliances & Expansion)
• Freddie Adler (Venture investor, Antler)
• Davon Morgan (Former NFL player, Jets & Eagles)
• Delu Jackson (Former VP Global Marketing, McDonald's; Former VP Digital Acceleration, Kellogg)

Capital structure:

• 241,705,000 shares outstanding
• Founders & Management: 55.7%
• Founding Investors: 44.3%

Funding ask: Amount not stated in deck. Round stage not specified beyond "investor presentation."

• Archetype + why: Hybrid membership/subscription + B2B PaaS + events/sponsorship model. The business has two distinct revenue engines: (1) a consumer subscription (freemium → paid at $2.99/mo) that scales with member count and paid conversion rate, and (2) a B2B PaaS contract sold annually to universities. Sponsorship and event revenue layer on top. This is closest to a consumer subscription + B2B SaaS dual-track model with an events P&L module. A 3-statement model is warranted at this stage since the company is pre-profitability and an investor will want to see cash burn and runway.

• Forecast horizon & granularity: Monthly for Years 1–2 (operating model / cash runway); annual summary for Years 3–5 (matching the deck's Y3 and Y5 vision milestones). Start model from 2020 actuals (Y1), project through 2025 (Y5).

• Key drivers & assumptions:

*Member growth*

• Y1 members: 2,180
• Y1 universities: 26
• Y3 target members: 3,600,000
• Y3 target universities: 2,400
• Y5 target members: 14,500,000
• Y5 target universities: 4,000
• Monthly user growth rate (beta period): 23.8% MoM - this pace will not be sustained; model should use a decay curve, e.g., tapering to 5–10% MoM by Y2.

*Paid conversion*

• Y1 paid conversion: 30.1%
• Y3 target paid conversion: 35%
• Y5 target paid conversion: 23% - note the decline likely reflects the expanded (more casual) audience at Y5; model this as an input variable.

*Membership ARPU*

• Paid membership price: $2.99/mo
• Blend upward over time as higher-tier tiers or annual plans introduced; start at $2.99 and apply modest 5–10% annual price increase from Y3.

*PaaS contracts*

• Y1: 1 contract
• Y3: 750 contracts
• Y5: 2,000 contracts

*Ticket revenue share*

• 10–20% of gross ticket sales per event; event cadence not specified; assume 2–4 major events/yr in base case.

*Sponsorship / brand revenue*

• Not quantified in deck. Prize pool coverage + cash sponsorship; model as $X per event per sponsor. Use $50K per signed sponsor per major event in base case, scaling with event count.

*CAC*

• Y1 CAC: $6.12
• CAC rises as organic word-of-mouth advantage diminishes and paid acquisition scales; model $6–$25 CAC range (Base/Bear/Bull).

*Prize pool / event costs*

• Texas Loyalty Cup prize pool: $10,000 for 10 universities
• BH partially or fully funds prize pools; model as cost of revenue line, offset by sponsorship recovery.

*Headcount*

• Y3 employees: 50–75
• Current headcount not given; estimate 10–15 FTE at Y1 based on stage and founder count; grow to 50 by Y3.

• Scenarios (Base / Bull / Bear - which variables flex):
• Base: 23.8% MoM user growth decays to 8% by end of Y2; 32% paid conversion; $2.99 ARPU; $10K PaaS contract; CAC stable at $10; 3 events/yr.
• Bull: Growth sustains at 15% MoM through Y2; 35% paid conversion; PaaS contract at $15K; 6 events/yr with 2 sponsors each; mobile in-app purchases launch Y3.
• Bear: Growth decelerates to 3% MoM by mid-Y2; conversion drops to 25%; PaaS contracts close slowly (100 by Y3 not 750); CAC rises to $25; events only 1–2/yr.

• Required sheets / outputs:

1. Assumptions - all drivers in one place (colour-coded inputs)
2. Members & Cohorts - monthly member growth, paid vs free split, churn
3. Revenue Build - subscription revenue, PaaS revenue, ticket revenue share, sponsorship revenue, in-app purchases (Y3+)
4. Cost of Revenue - prize pools, event production, platform hosting
5. Opex - headcount (by team), marketing/CAC, tech/infra, G&A
6. P&L (Income Statement) - monthly Y1–Y2, annual Y3–Y5
7. Cash Flow & Runway - monthly burn, cash balance, months of runway
8. Valuation / Comps - ARR multiple output vs peer table (Twitch 44x, Caffeine 24x, Vindex 44x implied range 24–44x); implied equity value at Y3 $50M ARR = $1.2–2.2B
9. Scenarios - Base/Bull/Bear toggle
10. Dashboard - KPI summary (members, paid %, MoM growth, CAC, ARR, PaaS contracts, cash runway)