Simultaneously running a business and going to school is no easy feat, but it worked for Deven Hurt, co-founder and CEO of PredictionStrike.
While attending Harvard Law School, he focused on growing his startup. Today, it has paid off as PredictionStrike — “the stock market for sports fans” — is valued at $32 million after receiving additional funding.
“Pretty much, I only had time to do school and run the company,” Hurt shared in an interview with Forbes. “But the nice thing about Harvard Law School, especially the second two years, is you really can decide where you want to put your time. People, of course, get involved in campus groups and things like that. Where I wanted to put my time was the company, and so the school had a lot of flexibility to allow that to happen.”
In a Series A round led by Bullpen Capital, PredictionStrike raised $10 million, according to Forbes. A number of other investors participated in the round such as Correlation Ventures, Elevate Capital, Gaingels, MaC Venture Capital, HighSage Ventures, and Sixty8 Capital.
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“This fits between what we know as fantasy, what we know as fandom, and at the same time you’re able to make money on this by holding shares and trading them at the right time,” Marlon Nichols, co-founder and managing general partner at MaC Venture Capital, said per Forbes.
The idea of PredictionStrike, which was founded in 2019 by Hurt and Brad Chabra, is to permit sports enthusiasts to invest in star players, similarly to stocks, according to the company website. Virtual shares are calculated by two key factors: supply and demand and performance vs. expectations.
“Probably the biggest thing for us is just making sure that the market feels like it makes sense and users feel like it works for them,” Hurt told Forbes.
Hurt and Chabra’s efforts have led to the company reaching 175,000 users. Already, they have processed $60 million in transactions.
What’s more, to generate the majority of the revenue, a 2.5% fee is charged on every transaction, and the platform also offers subscription services that provide discounts and incentives.
“PredictionStrike has basically figured out a way to monetize the fantasy market, which is massive. If we don’t see results similar to FanDuel, DraftKings and those folks, something’s gone wrong. It definitely has that potential,” Nichols explained to Forbes.