Daily fantasy sports platform PrizePicks is gearing up for massive growth in the new year, CEO Adam Wexler said.
PrizePicks, the main brand of Wexler’s startup Performance Predictions, enjoyed a lucrative year. The startup has partnerships with the Atlanta Falcons and Atlanta Braves, raised a strategic round of funding from some prominent names and saw a tenfold increase in its member base and gross gaming revenue.
Wexler, an Atlanta Business Chronicle 40 Under 40 honoree, is prepping for the next year to bring rocketed expansion. He sees PrizePicks as a startup that could help change Atlanta’s innovation reputation. The city is known for spitting out enterprise software startups, a product of the number of local Fortune 500 companies, which are premier customers for those ventures. PrizePicks customers are sports fans who enjoy playing against the game predictions.
PrizePicks is the “closest legal alternative to legal mobile sports betting” in most states, including Georgia and Florida. The startup’s footprint covers more than two-thirds of the U.S. population. It’s based in the Atlanta Tech Village.
“I’m excited to build the legacy of [business-to-consumer] entrepreneurs,” said Wexler, pointing to highly successful money management platform Greenlight Financial Technology as also aiding in that mission. “Take a look at Los Angeles over the last decade. Why not Atlanta?”
Atlanta has an active entertainment industry that could intersect with consumer-geared startups — a strengthening film and television industry, a storied music scene, and, more recently, a growing esports sector. Esports is approaching $1 billion in revenues worldwide, according to the Technology Association of Georgia. Well-known game development companies such as Hi-Rez Studios, Blue Mammoth and Scientific Games International are based locally.
Esports, led by shooting game Counter-Strike: Global Offensive, is PrizePick’s fifth-highest revenue generator, ahead of Major League Baseball, Wexler said.
The National Basketball Association and the NFL are the top revenue generators. Wexler used this football season to open new marketing channels to expand the customer base.
Wexler is also watching the 2022 state legislative session and hoping for changes to Georgia’s law that prevents sports betting. Sports betting bills had momentum in the last session and support from local pro teams but fell short of passing. Changes to those regulations could open new avenues of growth for PrizePicks.
PrizePicks has less than $10 million in investments, taking a page from marketing powerhouse Mailchimp’s bootstrapped success, Wexler said. But he says that could change next year if the startup needs capital to increase its employees or deals with sports teams.
The startup is backed by investment firms Phoenix Capital Ventures, Astralis Capital and The Player’s Impact. Individual investors include Atlanta Falcons quarterback Matt Ryan, Atlanta Hawks forward John Collins and former National Football League executive Vishal Shah.
PrizePicks currently has 100 employees, half of whom are full-time. The company had a hybrid work model before the pandemic, and a little less than half the team is based in Atlanta, Wexler said. The department seeing the most growth is its support team, which helps customers around the clock.
