Harsh Jain says it’s an “open secret” that he doesn’t use his own fantasy sports app – for fantasy football, at least.
“I’ve always been committed to fantasy football on the Fantasy Premier League, the reason why we created Dream11.”
Fantasy sports are online games in which players create virtual teams of proxies who follow real sports people. They can earn points and win cash prizes based on the actual performance of these players.
Fantasy football was already hugely popular in the UK in the early 2000s and Jain caught the virus while studying in high school there.
After introducing him to his childhood friend Bhavit Sheth, they set out to find a fantastic cricketing platform in India. Not having found what they were looking for, they created their own in 2008.
What happens if you get hit by the bus? Are you building scale and systems in a way… that doesn’t depend on [a single person] and… have one person make a decision?
jain hard
Co-Founder and CEO, Dream Sports
According to Jain, it’s “first mover advantage” that has taken their company Dream Sports – Dream11’s parent company – to great heights.
“Once you and your friends are…connected on a network in fantasy sports, for a rival to play you there, you have to move all your friends with you,” said Jain, who is also CEO of Dream Sports.
“Because you’ve set up your leagues, all of your friends are playing against each other.”
Dream Sports is not only India’s first sports tech unicorn – the company also owns “nearly 90% market share” in the country’s fantasy sports industry.
The 36-year-old shares three tips on how to run a successful business.
1. Unplug
If there’s one “fundamental principle” Jain and Sheth follow as leaders of their business, it’s to make sure their business isn’t dependent on one of them, they said. CNBC do it.
Jain said “What if you get hit by the bus? Do you build a ladder and systems in a way … does not depend on [a single person] and… only one person making a decision?”
That’s why the co-founders imposed a one-week “disconnect” on every Dream Sports employee, including themselves.
Harsh Jain (left) and Bhavit Sheth are the co-founders of Dream Sports, an Indian sports tech company that owns Dream11, the country’s largest fantasy games platform.
dream sports
Once a year, for a week, you are expelled from the [company] system…you don’t have Slack or email or calls,” Jain added.
“Because it helps you a lot to have that week of uninterrupted time and it helps the business know if we’re dependent on someone.”
Anyone who contacts another employee during the “disconnect” period must pay a fine of around $1,200, Jain added. It’s been effective so far, the co-founders said.
“Nobody wants to be that jerk who called someone who was unplugged,” Sheth, who is also the operations manager, said with a laugh.
2. Learn from rejection
Jain and Sheth said they heard “no” at least 150 times from venture capitalists when trying to secure seed funding 10 years ago.
“We went to all the Indian VCs, and they said, ‘This is an American concept. Fantasy sports aren’t prevalent in India…Why don’t you raise money in the US? “”
But it was just as difficult when Jain tried to raise funds in New York and San Francisco.
“All the VCs told me to go back to India. ‘It’s an Indian business, raise money in India!'” Jain recalled. Then I realized it was just a polite way to say no.
Instead of feeling discouraged, Jain and Sheth took advantage of the rejections.
Early-stage investors are actually looking for founders who are deeply passionate, [and products] with a large market.
jain hard
Co-Founder and CEO, Dream Sports
“The takeaway was that at every meeting you can find out why they said no, you can ask them, ‘What is your biggest concern?'”
Jain and Sheth said it took them nearly two years before they finally nailed their speech.
“Early-stage investors are actually looking for founders who are deeply passionate, [and products] with a big market,” Jain said.
Early traction, high user retention… and founders [who] stay in there and not give up. I think that’s what helped us finally break through the pitch.”
Dream Sports’ vision of connecting with millions of sports fans in India has since attracted big-name investors such as the Chinese tech giant TencentUS investment firm Tiger Global and Steadview Capital, headquartered in Hong Kong.
His latest fundraiser in 2021 grossed $840 milliongiving the company its $8 billion worth.
3. Stop the noise
The life of an entrepreneur is “always sexier on the outside,” Jain said.
It’s something childhood friends know only too well – they lost “a few million dollars” in start-up capital when they were just 26 years old.
“Every founder, when you start something, you really believe it’s going to explode, you’re going to change the world…and ours is broken and burned.”
Yet even after a successful transition from a free-to-play model to a “freemium” model in 2012, the challenges did not stop.
“From 2008 to 2012, it was difficult to find the right business model. From 2012 to 2014, it was difficult to raise funds. And 2015 so far is difficult to meet the expectations of investors,Jain said.
You are always fighting something.
jain hard
CEO and Co-Founder, Dream Sports
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