Kelly Perdew

I was very fortunate to know Luis Villalobos for over 10 years, as a fellow Board member, business partner, mentor and friend and I will miss him greatly. We grew much closer over the most recent 5 years as he asked me to partner with him in launching the next iteration of his vision to help entrepreneurs succeed: Angel Venture Partners.

He was always been there for me in any business deal, contract negotiation, or fund-raising event with logical, well-thought out, and always accurate advice. Luis came to my last two birthday parties (he knows and gives great wine as presents!), my wife’s and my engagement party, and he came to our wedding in Vegas this last January and took better photos of the event than our photographer! Luis embodied the 10 leadership principles I outline in my book - especially integrity. Luis always maintained clarity in every deal and acted with the utmost integrity. Southern California and the US entrepreneurial community has lost a great man, a great contributor. He will be missed by all.

Here is Luis’ formal bio (it is about 6 months old so there are probably a few more deals he’s in) but it doesn’t come close to describing his true impact on the world:

Luis Villalobos has a proven track record as a direct investor in 63 early-stage ventures – 14 successful exits (4 IPOs and 10 mergers), and 31 ventures remaining active. He has a strong technology background and holds several patents as lead inventor; he formed, headed and sold two ventures; and has mentored about a dozen CEOs. He earned degrees at Harvard Business School (MBA) and MIT (SB Math) where he was a National Merit Scholar.

He was the founder of the Tech Coast Angels, whose 111 portfolio companies have received $782 million in capital. He is a founding Board member of the Angel Capital Association – an organization with 100+ member angel groups. He helped start two other angel groups, East Coast Angels in Sydney Australia, and Camino Real Angels in Texas. He has developed and led over 100 workshops for angel group leaders, angels, bar associations (for MCLE credit), and entrepreneurs – on valuations, due diligence, term sheets, deal structures, venture capital, angel investing, early-stage funding, business plans, patents and intellectual property, and entrepreneurship. Villalobos is frequently quoted in the press regarding angel investing, and is a featured speaker and panelist at entrepreneurial events and conferences.

Villalobos has experience and expertise in IT (telecom, computer architectures, networks, micros, minis, codecs, security, graphics, imaging, compression); artificial intelligence (genetic algorithms, neural networks, fuzzy logic); software (assemblers, compilers, Visual Basic, application programming, cognitive and recognition algorithms); biotech (degenerative brain disease therapeutics); applications (computer-based education).

Please consider contributing to this fund that his colleagues and friends in the Tech Coast Angels have set up in his name: Luis Villalobos Memorial Scholarship, UCI Graduate School of Business: Send check to UCI Graduate School of Business c/o Luis Villalobos Memorial Scholarship Fund.

Dear Friends and Colleagues,

I hope this note finds you well and that you are enjoying the early fall, especially the fantasy football season that is well underway and keeping us at RotoHog so busy these days.

Our last few months have again brought some tremendous news and unprecedented growth for our company, and we wanted to give you a quick update on what we are up to and what’s coming next. Even in this challenged economy, it is becoming clearer every day that fantasy gaming is a great outlet for both the ardent and casual sports fan, and we are very excited to help those gamers, and the media partners that are presenting those games on very large platforms, quench that thirst for quality play and information.

Some highlights of our recent activity include:

• Fantasy Football: We have launched our multi-sport game solution for Sporting News (http://www.sportingnews.com/fantasy/football), one of the largest fantasy gaming platforms in the industry, as well as football games for Los Angeles Times (http://football.latimes.com/), ProFootballWeekly (http://www.profootballweekly.rotohog.com/), Rallycast (https://www.rallycast.com/rallycast/index.jsp), Operation Sports (http://fantasy.operationsports.com/), and Military.com (http://football.military.com/scm/).

• NBA.com: We are currently building and deploying games as part of our continuing partnership with Turner Sports and the NBA, and will launch the third season of the NBA Stock Exchange game on NBA.com this coming week with some spectacular new features. (http://www.nba.com/fantasy/)

• Military.com Partnership: One of the most passionate groups for fantasy gaming is the US Military, and we have launched a new platform for the highly-trafficked website Military.com, starting with football and carrying into other sports and events. It is a great opportunity to give something back to a core audience that is particularly meaningful to me and which is passionate about the product and can get some real rewards out of the prizes that will be built into the competition.

• Financing: Even in this challenging economy we continue to find new investment dollars, which is the clearest proof of our viable business platform in this highly competitive space. This month we closed an additional $2 Million from Mission Ventures, which gives us even more bandwidth to grow as a brand.

• Media coverage: We were recently featured in the September issue of Entrepreneur Magazine. In case you missed it the link is: http://entrepreneur.com/magazine/entrepreneur/2009/september/203140.html

• Venture Industry: I am honored to be a keynote speaker at VentureNet (http://www.venturenet.org/) this year. The conference is always exciting, has sold out the last 10 years, and I recommend it for anyone raising money or starting a technology business in Southern California. Here is the code for a significant discount if you are interested in attending:
-Website: www.venturenet.org
-Code: VNJK
-Discounted rate: $99 ($100 savings off the non-member rate)

These are only a few of the latest developments and we will be implementing and announcing many more deals in the near future. We expect more partners and properties to be joining us in the fourth quarter and into 2010, as we grow market share and visibility as the best in class for developing and marketing innovative games for some of the biggest and most passionate players in the industry.

As always thanks for your time and interest, and if there is anything we can do to assist you or answer and questions, comments or opportunities please let me know.

Regards,

Kelly

Dear friends and colleagues,

We continue gaining momentum and I want to update you on the past month. We are growing and adding new partners as we approach what will be a record fall season of creation and activation for the team here. Also, thank you very much for those of you that reached out with business ideas, they were very useful!

Recent exciting developments since we last communicated include:

• Sporting News. We launched the fantasy football Salary Cap and Draft & Trade games on SportingNews.com, which is the first of many launches with one of the premier titles in sports publishing. Find the games here: Salary Cap and League Manager. The league manager draft application will include features never before seen in the fantasy space. Check it out.

• Fox Sports En Espanol. We launched our second-half baseball season with Fox Sports En Espanol, which follows on the heels of a very successful implementation of a fantasy game and Sports Market Ticker™ for their baseball coverage. Click here for the game. Fox secured an excellent sponsor for the game – Clamato.

• The Sports Network. We closed a large-scale deal with The Sports Network wherein TSN will work with RotoHog to provide data and news across multiple sports. This will ensure that RotoHog and its partners have the most accurate, up-to-date information within their fantasy games.

• Diskavontade. We closed a deal for RotoHog to power unique Brazilian Serie A and World Cup Pick ‘Em soccer games to Diskavontade, a company specializing in VOIP technology with emphasis on communications to and from Brazil. Diskavontade will use the game to attract and engage its network of agents, and to promote their products and features in an innovative fashion.

• FUHU. A partnership with FUHU, one of the world’s leading web application providers, to create and manage fantasy sports games and content for their uFooz portable ID cards. This will enable subscribers to share fantasy sports, photo sharing and other content across a host of social networking platforms. The games and applications will also be housed on uFooz.com and be available to millions of fantasy game fans worldwide. Create your own urFooz card here.

• AlwaysOn 250 Global Media Company Award. I am also very pleased to report that RotoHog was selected as a worldwide finalist by the industry group AlwaysON as one of their top 250 global media companies, and is one of the few sports entities to make the list. This is the latest in a series of acknowledgments that continues to show how quickly we are becoming a leader in the space, with a number of additional announcements and new partnerships coming in the fall. See list here.

• RotoHog Redesign. We upgraded the look and feel of RotoHog.com to highlight our platform capabilities. However, all of the games that you have enjoyed playing (and many more) will still be available on the site HERE.

The breadth of these relationships indicates the power and flexibility of the platform the team here has built. Despite the economic slowdown, the fantasy gaming space continues to grow, and we are very proud to be at the forefront of that growth with our applications, our unique games, the most scalable and flexible platform, and creative solutions for our business partners. Please let me know if you have any ideas for partners for all of our soccer offerings for next year!

As always, we want to thank you for your support and interest, and we hope to see you soon.

Regards,

Kelly

July 1, 2009

Dear Friends and Colleagues,

Approximately two months ago I sent along a first quarter “progress report” letter to keep everyone up to date with all the new developments at RotoHog, as we expanded our partnerships and secured the necessary additional funding we would need to take the business to a new level. At the end of the letter I mentioned that more good news was coming, and today I wanted to pass along the latest advances we have made in the business as we continue to make the company into the most innovative fantasy sports gaming developer for major brands and professional sports entities.

Our leadership position in this very competitive marketplace is expanding almost daily. Just in the last few weeks we have been able to announce:

• A landmark partnership with The Sporting News, where RotoHog will build, activate and market all online fantasy games for one of the most established online properties and storied names in sports and entertainment publishing. http://tinyurl.com/necqpo

• A partnership with Chris Russo and the folks at Fantasy Sports Ventures, the fastest-growing independent site on the web, to build games for FSV’s extensive list of sites and ever-evolving business partners, brands and sponsors. http://tinyurl.com/n2kkju

• A strategic partnership with online news and content provider Operation Sports to produce, manage and market their 2009 Stock Exchange Football Game. Operation Sports is a leading news and content provider focused on the sports video game industry with over 100,000 members. http://tinyurl.com/cszvzh

These new deals, in addition to our existing partnerships with the NBA, Turner Sports, FOX en Espanol, Pro Football Weekly, the AVP and others, give us the widest range of strategic partnerships to develop and build games in the industry today, and the best part is we are just beginning to establish our brand.

In the next few months we expect to continue to grow partnerships with additional media entities around the globe, as we shape RotoHog into the ultimate destination for brands who want to provide “best in class” and innovative gaming applications to their loyal subscribers ubiquitously on their sites, mobile, and social media channels.

Once again, we want to thank you for your support and interest, and as always, if there is anything we can help you with, please let us know.

And please come play our famous Stock Exchange Football Game here http://tinyurl.com/nhfw96.

Regards,

Kelly Perdew
President & CEO, RotoHog

I love this article about how Twitter was born. I see time and time again that the right team will find product and/or service for their customers.

LEADERSHIP!

By ERIC FISHER
Staff writer
Published June 08, 2009 : Page 27

See full article here.

Fantasy outfit RotoHog has struck a multiyear deal with Sporting News to power the media outlet’s suite of fantasy games.
Beginning with fantasy football this fall, Los Angeles-based RotoHog will develop and operate a set of free and fee-based fantasy games under the Sporting News brand for football, baseball, golf, hockey and motorsports. Of particular note is how the pact aims to extend Sporting News’ fantasy reach into social media and mobile networks, using technologies that allow assets from the games to be easily distributed from SportingNews.com onto platforms such as Facebook and the iPhone.

“In order to take our games to the next level, we wanted to align with somebody intensely focused on the space, was committed to a strong [business-to-business] solution, and wasn’t satisfied with developing the same old off-the-shelf products,” said Jeff Gerttula, vice president and general manager for online at Sporting News.

For RotoHog, the deal extends a run of activity this year that includes a somewhat similar deal with Fox Sports en Español, an alignment with ticketing outfit RazorGator, and the closing of a $2 million round of Series B venture capital funding. “This is a very strong testament to what we’re doing and the platform we’ve developed,” said Kelly Perdew, RotoHog chief executive. “We’re very excited to be partnering with an iconic brand like this and are pleased to be able to have good things like this happening in this economy.”

April 14, 2009

Dear Friends and Colleagues,

I hope you are doing well as baseball gets into full swing, the fantasy volleyball season begins and the NFL Draft starts getting hyped up. One thing we can say is that sports, although not recession-proof, continue to provide great entertainment and value for consumers, and that the fantasy and digital activation space today is what baseball cards and board games were for earlier generations.

For those of you who know me, you know how much I enjoy all the challenges of a start-up. I think that RotoHog and our recent work exemplify both the challenges and the successes of what can be accomplished in this sector. Below is a brief update of some of the success our team has accomplished in recent months, as we transitioned from being just an online fantasy game company to a brand that provides the best B2B platform for fantasy games and tools for providers in the space.

In the last few months RotoHog has:

1. Created an exciting NFL Playoff game for GoDaddy.com to launch their Super Bowl advertising platform, using Facebook as the driver.
2. Created the first-ever Spanish language baseball Stock Exchange game for Fox Sports En Espanol.
3. Implemented two very successful fantasy games for NBA.com, including our flagship product, the NBA Stock Exchange game. As part of this delivery we integrated with Turner Digital’s back end systems and provided a seamless single sign-on for fans.
4. Launched a first-of-its-kind fantasy game for AVP Pro Beach Volleyball on AVP.com.
5. Secured a partnership with Gatehouse Media to work with them on fantasy programming across all of their publications, including Pro Football Weekly.
6. Created a World Cup Soccer 2010 Qualifier Game on Facebook.
7. Opened a branded ticket shop with RazorGator, providing our partners with yet another opportunity to monetize within our customized fantasy games.
8. Launched our Sports Market Ticker™, an application that supplies fans with the derivative data from our stock exchange games just like a real stock ticker – player pricing movements, transaction volumes, etc… — for all the players in that sport league.
9. Successfully implemented a major integrated sponsorship with LG Electronics on our fantasy football stock exchange game.
10. Recruited the best technology and product team in the space made up of experts from the Gaming and Platform industries. Our platform offers multiple types of fantasy games that are easily adapted to different sports and brands with modular components to facilitate integration with partner web sites and international audiences. The technology is further designed for high reliability and scalability in a cost effective manner by using state-of-the art hardware and software development, deployment and operations technologies.
11. Secured an additional $2 Million in funding that will keep our business growing and thriving as we add new partners.
12. Re-branded and launched our B2B corporate site where you can track all of our progress at www.rotohog.com/corporate.

We are also honored to have been selected last week as one of the top 100 emerging companies in digital entertainment and the winner of the “Enabling Tools” category by the AlwaysOn Network. RotoHog beat out over 500 other companies to win the category in its first year of entry.

What I am hoping is that the success we have had with RotoHog is really a sign of both the economy turning around and the acknowledgement by the business community of what many have been saying for the past few years…that the ability to create efficient, monetizable platforms in the digital space, and then marry those platforms to major distribution partners is where the sports and entertainment world is going in order to connect with its fervent fan base.

All this is great news for our company, but we are just getting started and will continue to take an even bigger leadership position in the industry in the coming months, with new partnerships and more innovative deals. We want to thank you for your support and interest, and as always, if there is anything we can help you with, please let us know.

Regards,

Kelly

Kelly Perdew
CEO, RotoHog

Interview by Darren Heitner.

I am a big fan of Kelly Perdew. A mutual friend of ours, Joe Favorito, suggested that I invite the einner of Season 2 “The Apprentice” and CEO of Rotohog to the 2009 UF Sports Law Symposium. I took Joe up on his suggestion and Kelly provided some great insight for everybody in attendance. I then bumped into Kelly at a Super Bowl event in Tampa while he was celebrating his birthday. I am not sure which number birthday it was, but by looking at Kelly, you would not know he was any older than twenty-five. That being said, looks do not matter much. He has accomplished a lot in his young life and is a innovator in the business of sports. Joe Favorito again reached out to me with the idea that I interview Kelly for SportsAgentBlog.com. The result is below.

Darren Heitner: You went from winning the Apprentice to founding a successful fantasy sports platform. Fill in the space between. What are some interesting things that happened at that point in your life?

Kelly Perdew: I HAD A GREAT YEAR IN NEW YORK WORKING FOR DONALD. I LEARNED A LOT ABOUT REAL ESTATE AND EVEN MORE ABOUT BRANDING. I’VE ALWAYS LOVED SPORTS AND HAVE BEEN IN A 12-MAN KEEPER FANTASY FOOTBALL LEAGUE WITH MY TWO BROTHERS AND NINE BUDDIES FOR EIGHT YEARS (OF WHICH I’M THE 2 YEAR RUNNING SUPER BOWL CHAMP - CAN YOU SAY ‘THREEPEAT?!!!” - SORRY COULDN’T RESIST). WHEN THE RECRUITER CALLED AND ASKED IF I’D BE INTERESTED IN RUNNING A FANTASY SPORTS GAMING COMPANY WITH INSTITUTIONAL INVESTORS LIKE MISSION VENTURES, DFJ DRAGON, AND ALLEN & CO, I JUMPED AT THE OPPORTUNITY!

Darren Heitner: How has having a law degree been beneficial in your life? Do you think it is necessary degree or even something that should be sought after by sports agents?

Kelly Perdew: CRITICAL THINKING HELPS YOU IN EVERY ASPECT OF YOUR LIFE. BEING ABLE TO BREAK DOWN A PROBLEM TO ITS ROOT DRIVERS AND LOGICALLY DETERMINE POTENTIAL OUTCOMES IS CRITICAL TO SUCCESS. OF COURSE, IT ALSO HELPS YOU KNOCK DOWN THE LEGAL BILLS WHEN THEY COME IN!

Darren Heitner: What are some of the big sports law issues that fantasy sports platforms are currently battling? What do you believe has the potential to create potential legal problems in the future in your space?

Kelly Perdew: THERE IS ALWAYS GOING TO BE SOME TENSION BETWEEN THE RIGHT TO FREE SPEECH AND OWNERSHIP OF INFORMATION TO INCLUDE STATISTICS, LIKENESSES, LOGOS, AND THOSE TYPES OF THINGS. FORTUNATELY FOR OUR BUSINESS AND THE GENERAL PUBLIC/FANS, THE COURTS HAVE CONCLUSIVELY COME DOWN ON THE SIDE OF FREE SPEECH IN MOST INSTANCES. ADDITIONALLY, WHEN AN INDUSTRY REALLY STARTS GROWING LARGER, LIKE FANTASY IS NOW, YOU CAN SOMETIMES SEE MONOPOLY-LIKE BEHAVIOR IN CERTAIN AREAS - I THINK YOU ARE GOING TO START SEEING MUCH CLOSER SCRUTINY OF THE MARKET POWER AND MONOPOLISTIC BEHAVIOR OF SOME OF THE ENTITIES IN THE SPORTS SPACE.

Darren Heitner: You seem to be willing to travel often to speak to those interested in breaking into the sports business. What are some of the reasons why you devote your time to informing others?

Kelly Perdew: I BELIEVE STRONGLY IN GIVING BACK. IT IS ONE OF THE CRITICAL LEADERSHIP PRINCIPLES THAT I WROTE ABOUT IN MY BOOK, “TAKE COMMAND: 10 LEADERSHIP PRINCIPLES I LEARNED IN THE MILITARY AND PUT TO WORK FOR DONALD TRUMP.” ADDITIONALLY, MOST OF THE EVENTS ARE EXCELLENT FOR NETWORKING FOR PARTNERS, CLIENTS, INVESTORS AND POTENTIAL EMPLOYEES.

Darren Heitner: Should sports agents play fantasy sports? Why/why not? If they play, should they feel bad if they pass over selecting their client for another agent’s client?

Kelly Perdew: EVERYONE SHOULD PLAY FANTASY SPORTS. IT IS FUN AND IT MAKES YOU BECOME A BETTER, MORE PASSIONATE, MORE EDUCATED FAN OF THE ATHLETES, TEAMS AND SPORTS. PICK THE PLAYER YOU THINK WILL GET YOU THE MOST POINTS!

Darren Heitner: Your company just secured an additional $2 million in funding. How were you able to secure this funding in an economic climate that is mighty bleak?

Kelly Perdew: IT IS A VERY DIFFICULT CLIMATE IN WHICH TO RAISE CAPITAL. FORTUNATELY, WE HAVE STRONG AND EXPERIENCED INVESTORS IN ROTOHOG WHO BELIEVE IN THE TEAM, THE VISION AND THE SPACE. ADDITIONALLY THE TIMING OF THE FINANICNG POSITIVELY IMPACTS US AS NOW OUR CLIENTS (TURNER DIGITAL, FOX ESPANOL, AVP, ETC…) FEEL MUCH MORE COMFORTABLE THAT WE’LL “BE AROUND” FOR A LONG TIME WHEREAS SOME OF OUR COMPETITORS MAY NOT.

Darren Heitner: People are obsessed with athletes, which is a major reason why fantasy sports games have thrived. Will we ever see a game that includes sports agents?

Kelly Perdew: I DOUBT IT. THE GENERAL PUBLIC PROBABLY ISN’T THAT INTERESTED IN WHETHER AN AGENT WAS ABLE TO NEGOTIATE A BIGGER SIGNING BONUS FOR THEIR CLIENT ATHLETE. JERRY MCGUIRE MAY BE THE PINNACLE OF THE GENERAL PUBLIC’S AWARENESS OF WHAT A SPORTS AGENT DOES. COMPARED TO THE TELEVISED WEEK IN, WEEK OUT PERFORMANCES ON THE FIELD BY THE ATHLETES…A SPORT AGENT JUST DOESN’T REGISTER FOR A FAN. THEREFORE, IT IS HARD TO BUILD A COMPELLING GAME.

Darren Heitner: What would you tell an 18-24 year old who wants to break into the business of sports?

Kelly Perdew: REALLY IT IS NO DIFFERENT THAN OTHER INDUSTRIES - YOU HAVE TO BE PASSIONATE ABOUT WHAT YOU’RE DOING. RESEARCH, NETWORK, PLAN, AND WORK AS HARD AS YOU CAN. YES, LUCK PLAYS A BIG PART OF THE EQUATION, BUT, LIKE THOMAS JEFFERSON SAID, LUCK IS WHERE OPPORTUNITY MEETS PREPARATION. THE BETTER PREPARED YOU ARE, THE MORE LIKELY YOU’LL BE ABLE TO TAKE ADVANTAGE OF THE OPPORTUNITIES.

Great article in The Economist about what makes entrepreneurs successful…and LUCK is one of the factors!

http://tinyurl.com/ceomgq

One of America’s leading media distribution companies to create new online fantasy sports platform for one of the world’s most popular sports

Los Angeles, March 10, 2009

RotoHog, one of the fastest-growing and most innovative fantasy sports operators and developers for major brands and professional sports, today announced it has secured an additional $2 million in funding to expand its business platform and develop new technology for its partners. The funding round was led by venture capital groups Mission Ventures and DFJ Dragon (China Fund).

“We have been able to show that even in challenging times the business model we have built for RotoHog is unique to the marketplace and fills a need that major fantasy game providers have…namely building and delivering innovative games and powerful platforms for a growing fan base worldwide,” said CEO Kelly Perdew. “This additional capital gives us the stability to focus on our long-term strategy, which is to be the worldwide leader in the development of fantasy sports games, games that are scalable, have turnkey solutions and will create new revenue streams for our partners, who include some of the biggest names in the industry, from Turner and the NBA to Fox Espanol and the AVP.”

“We have seen considerable traction and are excited about the focused vision of the RotoHog team,” said Leo Spiegel, Managing Partner Mission Ventures. “DFJ Dragon watches the China market and looks for companies that can exploit those opportunities. The market for fantasy in exploding and RotoHog will be a leader,” said Andy Tang, Managing Partner DFJ Dragon.
The additional funding is the latest is a series of successful moves for RotoHog, a brand that has quickly become a leader in the building of infrastructure for partners, ranging from sophisticated stock exchange and commissioner-style games for the NBA and Pro Football Weekly to casual Facebook and MySpace games with GoDaddy.com and others. RotoHog recently announced a new partnership with the AVP Pro Beach Volleyball Tour, and other moves will be announced in the coming weeks.
RotoHog is the leading fantasy sports platform provider, with partners including NBA.com, Turner Digital, Pro Football Weekly, AVP, Fox Espanol, GoDaddy, and LG Electronics. RotoHog is privately held, and based in Los Angeles, CA. Investors include Mission Ventures, DFJ DragonFund, Allen & Co and Sports Capital Partners Worldwide.

For more information on RotoHog please visit www.rotohog.com/corporate.

Media Contact:
Joe Favorito
Rotohog
917-566-8345
jfavorito@rotohog.com