Guest Sam Rattner shares his journey from running a snow removal company to selling his sports betting app for $40M. He discusses the transition, challenges of early success, identifying opportunities in sports betting, value of senior players in gaming, building a new company, finding the right partner, and creating a fashion search engine.
Identifying emerging trends and capitalizing on changing market dynamics can lead to success in regulated industries like sports betting.
Building AI-based products that offer a unique user experience and forming strategic partnerships are crucial for entrepreneurial ventures.
Showroom, a fashion search engine startup, aims to solve the challenge of organizing and standardizing fashion-related data using AI and has partnered with renowned brands.
Deep dives
Identifying a Market Opportunity
The founder recognized the opportunity in the impending regulation of sports betting in the United States. Through his experience as an avid online poker player, he noticed that many players were discussing sports betting and its potential legalization in the US. He conducted research on the industry and identified the key players and technology providers in the market, understanding that existing European tech companies had already gone through regulatory compliance and could be potential partners for US-based companies.
Bringing in an Experienced Partner
To bolster the company's expertise and industry connections, the founder brought on board a senior executive, Scott Butera, who had extensive experience in the gaming industry, including turning around Trump Entertainment Resorts and leading major casino and resort operations. Scott's deep knowledge of the industry and relationships with regulators, as well as his passion for building companies, made him an ideal partner. His involvement with the company also helped establish credibility and facilitated conversations with regulators, leagues, and potential investors.
Harnessing Relationships and Regulatory Expertise
The founder recognized the value of relationships and regulatory expertise in the heavily regulated gaming industry. By collaborating with experienced industry professionals like Scott, the company gained access to a network of regulators, lawyers, and key stakeholders who could expedite the regulatory approval process and provide strategic guidance. These relationships gave the company an advantage and helped build trust with the regulators, enabling smoother operations and paving the way for potential partnerships with major players in the industry.
Taking Advantage of Emerging Trends
While it is generally advised not to chase trends, there are certain times when emerging trends present significant market opportunities. The founder's approach was to identify fundamental shifts in the business landscape, such as the legalization of sports betting, and capitalize on the changing market dynamics. By recognizing the potential in regulated industries and finding unique entry points within the value chain, the company was able to position itself for success. It's important to evaluate whether the trend is a genuine game-changer and if the solution being offered truly adds value to the market.
Summary of the Podcast Episode
The podcast episode discusses the importance of building AI-based products that offer unique value to users. The speaker emphasizes that a business must focus on delivering an exceptional user experience and not just rely on the underlying technology or language models. They highlight the need for products that go beyond what AI models can do on their own. The episode also touches on the significance of strategic partnerships, suggesting that building relationships based on shared goals and engaging in meaningful conversations can lead to successful collaborations. The speaker shares insights on the informative nature of raising capital and the role of persistence in pitching investors. They underscore the importance of approaching investors as an opportunity to share information rather than trying to persuade them. Overall, the episode provides valuable advice for entrepreneurs, emphasizing the need for vision, confidence, and relationship-building when developing AI products and seeking partnerships.
Overview of Showroom
Showroom is introduced as a massive cloud infrastructure project that leverages AI to provide a vertical-specific search engine for fashion. The company has partnered with numerous brands and retailers, including well-known names like Nordstrom and Saks. Showroom aims to solve the challenge of organizing and standardizing fashion-related data, which is inherently diverse and complex. By combining GPT with their internal language models, Showroom can understand user queries and provide accurate and relevant search results based on brand sentiment and user feedback. The speaker emphasizes that Showroom goes beyond simply suggesting brands or keywords and instead shows users specific products that match their preferences. They highlight the importance of building a strong data moat as the foundation of their AI-powered business. Showroom's focus on the e-commerce market and its potential for global scalability is also highlighted, emphasizing the vast opportunities available in the trillion-dollar industry. The episode concludes with the speaker expressing their aversion to regulated markets and their enthusiasm for the potential of their AI-powered venture.
In #19, Michael Sikand (@michaelsikand) and Simran Sandhu (@_simmy_) chat with Sam Rattner (@samrattner), Co-Founder of Vigtory, a sports betting app he sold for $40M to FuboTV in 2021 at age 23. Sam is a college dropout who built a snow removal empire as a Chicago teenager before he pivoted to capitalize on the legalization of U.S. sports betting. More recently, Sam became the Co-Founder and CEO of Showroom, a B2C fashion search engine startup that he thinks can beat Google at its own game.
01:00 Sam's Snow Removal Biz
02:28 Don't Build For Silicon Valley People
08:42 Pros and Cons of Service Businesses
11:30 Why Sam Pivoted Into Tech
14:00 Being a Second-Time Founder
24:54 How/Why Sam Started Vigtory
31:30 The Guy Who Made Vigtory Work
45:00 Sam's Golden Rules on Partnerships and Fundraising
56:40 Sam's New AI Company
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Our Future Podcast is a production of Morning Brew.
