E21: Jake Paul and Joey Levy of Betr on How to Build a $100 Billion Company

Episode Summary

Executive Summary: Jake Paul and Joey Levy discuss their partnership in Better, a sports gaming startup aiming to disrupt the industry with a simpler, more intuitive product for casual sports fans. Paul shares his journey from influencer to pro boxer, emphasizing self-belief, extreme dedication, and the strategic use of controversy and psychedelics. Levy explains the company's media-driven, low-cost customer acquisition strategy and its ambitious goal to build a multi-billion dollar company, highlighting early success with the Better Picks product.

Main Topics: Entrepreneurial Mindset & Ambition (Priority: 5/5): Discussion of the 'real-life Monopoly' philosophy, the drive to build a billion-dollar company, and the belief that anyone can achieve extraordinary success through dedication and self-belief. Better's Market Disruption Strategy (Priority: 5/5): Levy outlines Better's approach to capturing the underserved casual sports fan market by creating simple, intuitive products (like Better Picks) and leveraging media to drive down customer acquisition costs. The Role of Psychedelics in Success (Priority: 4/5): Paul attributes 100% of his success to psychedelics for enhancing self-understanding, emotional intelligence, and fostering innovative ideas, citing Steve Jobs and Elon Musk as examples. Strategic Persona & Marketing Genius (Priority: 4/5): Paul admits that his 'problem child' persona is a deliberate marketing gimmick to grab attention and generate controversy, which aligns with his boxing career and brand building. Co-founder Alignment & Culture (Priority: 4/5): Levy and Paul discuss their equal 50-50 equity split, shared ambition, and complementary skills. They also highlight the extreme company culture, including employees getting tattoos of the Better logo. Boxing as a Metaphor for Business (Priority: 3/5): Paul uses his rapid rise in boxing as an example of extreme focus, discipline, and strategic timing, which he applies to his entrepreneurial ventures.

Key Arguments: Self-belief and visualization are critical; Paul came into boxing when the sport was 'dying' and saw an opportunity to disrupt it. Psychedelics provide an 'opening' to understand oneself and others, leading to better leadership and groundbreaking ideas. Better's media-first approach creates brand affinity, making paid user acquisition more efficient than competitors like DraftKings and FanDuel. The current sports gaming market is dominated by products designed for power users, leaving 95% of potential users underserved—Better aims to be the 'Robinhood of gambling.' A 50-50 co-founder equity split creates true alignment and incentivizes both parties to build a massive company, rather than a smaller one with unequal stakes.

Data Points: Better Pics revenue run rate: High eight-figure, possibly over $100 million by year-end - Within two months of launch (Sept 5, 2023), Better Picks is on track to exceed $100 million annual revenue. Active paying users for Better Picks: Nearly 100,000 - Achieved within just two months of launch. Market penetration of FanDuel/DraftKings: 5% - Levy argues that despite massive brand awareness, only 5% of potential users are active, representing a huge TAM opportunity. Better's customer acquisition cost efficiency: Order of magnitude more efficient than competitors - Levy claims Better's blended CPA is far lower than industry averages due to media halo effects. Paul's training hours: 16 hours per day - Paul cited extreme dedication as a key to his boxing success.

Pivotal Quotes: "Psychedelics actually gives you like an opening into that world, those energies, how to be a part of a community, love, push, pull, being a good leader...and then just the amazing ideas that come from it." — Jake Paul: Attributing his success to psychedelics for emotional intelligence and innovation. "If I'm going to do anything, I'm going to go at it 1,000% and give it my best effort every single day, day in and day out, and do everything I possibly can to ensure this company's success." — Jake Paul: Articulating his relentless work ethic applied to Better. "It's not just the 70 million neat followers across social media...but it's really the marketing genius that I don't think a lot of people candidly have." — Joey Levy: Explaining why he gave Jake Paul 50% equity in Better, valuing his marketing ability beyond just reach.

Implications: Better's media-centric, low-CAC model could disrupt the sports gaming industry, forcing incumbents to rethink customer acquisition. The success of high-risk, high-ambition partnerships like Paul and Levy may inspire more founder collaborations that emphasize alignment over control. Paul's candidness about psychedelics could further normalize their use in business circles.