🎮 A New Way to Game…

Plus: G’bye Nesquik, hello great golf, B2B startup ideas & who’s building a secret city.
Newsletter
August 29, 2023

Hi there,

Riddle me this, Batman. Why are people going batty over a James Webb Telescope image of a massive blazing question mark over 1’500 light-years away? (No, it’s not DC’s most expensive and elaborate stunt, it’s two galaxies merging.)

In this Open Letter:
  • Paid to play: Realising the ultimate gamer’s dream.
  • G’bye Nesquik, Africa’s best golf & the next Silicon Valley.
  • Move fast: Quick startup idea-generating hacks.
  • Kasi opportunities: The poll results are in.
  • Startup ideas: Refer friends and get juicy opportunities.

TRENDING NOW

The Gaming Dream

From Play to Payday 🎮

Every gamer ever has had that daydream: "Wouldn't it be grand to play games for a living?"

After all, countless hours of levelling up and online brawls have to count for something beyond bragging rights, right? But the problem is that this space is big and has become super competitive.

No overtime in pro-gamer life

The Grandeur of Gaming

Let's talk numbers. The global gaming industry boasted a staggering $217.06 billion value in 2022. Just to throw a comparison your way, the global movie biz? Less than half of that.

And let’s not forget about the avid fans – the eSports world pulled in a whopping 532 million fans in 2022. And the pie isn't just games. It’s a colourful canvas of marketing, sponsorships, and promotional deals that adds layers to this burgeoning domain – this space is booming.

Pro Gaming: The Highs and Lows

Going pro in South Africa is a mixed bag. The highs? Those who make a global mark can reap rewards. The lows? A lot of dedicated players juggle long hours for an income ranging between R7’500 to R14’900. It’s not exactly gold coins raining from a Super Mario block, especially if you've got real-world responsibilities beckoning.

A Novel Twist: Bet On Your Skills

But what if there was another way for avid gamers to earn some buck for the effort? Enter Skrmiish. This SA startup lets you back your own skills, setting wagers on your performance in popular titles. Think you can clutch a victory royale or smash that League of Legends objective? Put your money where your avatar is, and, if you pull it off, you actually get paid. Boom.

And with a $2.5m seed round under their belt and plans to include hot titles like Call of Duty, Dota and CS: GO, Skrmiish is turning up the heat.

Finally a potential reality?

Beyond the Game

Here's where it gets extra fascinating.

Traditional sports betting has its limits, but Skirmiish can tap into the digital nature of games (pulling in data from APIs or streams), unleashing a trove of creative new challenges and opportunities not available in traditional sports betting. And it can go well beyond just in-game achievement, there's potential for heightened player engagement and tantalising advertising prospects.

The gaming universe is vast, dynamic, and evolving. And with platforms like Skrmiish bringing innovative twists, the narrative is getting richer.

Hats off to the Skrmiish team for levelling up the game!

Refer one friend to sign up to The Open Letter and view our top opportunity pick for this trend (and all future trends we cover).

Get your sharing link here.

OVER TO YOU

What’s your jam?

Vote to see your nemeses/tm8s...

Login or Subscribe to participate in polls.

IN SHORT

Big Fuel Increase. Despite the petrol price coming down in the last little while, we’re in for a massive jump in fuel prices next week. Petrol is expected to jump by R1.60 per litre, while diesel is set to go up R2.80 per litre. Maybe it’s time for our new oil-producing BRICS friends to start giving South Africa the ol’ Friends and Family discount…

🏌️Swing Life Away. While golf might be experiencing a drop in popularity, it’s still the most popular thing to do for uberwealthy centi-millionaires. 5 South African golf courses have cracked the Top 10 African Golf Courses list including Fancourt, Highland Gate, Leopard Creek, Steyn City, and Zimbali.

🚙 Can't beat ‘em? Buy them. One way to take down the competition is to straight up acquire them. Which is exactly what EV company XPeng did when they bought Chinese ride-hailing platform Didi’s electric cars subsidiary for over $740 million. XPeng shares gained 13% after news of the sale and it’s expected to shake up the world’s largest auto market.

🥛 Ruin a Childhood. Nesquik has discontinued its strawberry and chocolate-flavoured powders due to a decrease in demand. Add that to the list of yet another thing from your childhood that’s gone.

🏗️ Concrete Jungle Dreams. A mystery company, Flannery Associates (funded by some big-name Silicon Valley players), has been buying up massive swaths of land in northern California to build a new “ Utopian Smart City” – Silicon Valley 2.0.

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BUILDER’S CORNER

2 Idea-Gen Methods for B2B

Hey, so you know how we’re always pointing out opportunities? From township economies to online fashion, better digital payments to AgriTech and even education, etc. etc. Well, how do you action any of it? You know, where do you start?

Prolly is

Well, one filter to apply is the idea of solving problems for existing businesses. I.e. the B2B route. And there you have 2 types of clients – mid-level and corporates, or solos and very small businesses.

Here’s a strategy for quick ideation for each – starting with user/client needs.

For mids and corporates

  1. Start with what you know
  2. Do you have inside information on a corporate already playing in this space? Maybe you used to work for them and know how they handle things. Or maybe your partner does. A family member. A friend. Anyone who works or has worked in the specific department in a corporate that touches the field/industry you’re looking into (ed, agri etc.). If you don’t hustle your way in with networking or even a straight-up LinkedIn message.
  3. Look for pain points/delays/inefficiencies
  4. Where can you help them save time, money, and resources or help them reduce risk? Corporates hate risk, it’s bad for the share price.
  5. Work on margins
  6. You don’t have to disrupt or change the world with corporates. They have enough volume that even incremental or marginal improvements create huge value.

For SMEs and solos

  1. Identify the ideal user
  2. The person who’d buy your service (i.e. people selling niche products on Etsy or whatever).
  3. Find their biggest general wants/needs
  4. Go where they hang out online. Forums, social networks, groups etc. And just note down the conversations they have with each other – read the comments at the bottom of trending forum topics or YouTube videos and podcasts aimed at them.
  5. Then, check which companies are already serving them, and scope out their Google reviews for what people like about what/how they deliver. Also, check their social posts – see which ones have the most engagement, make note of the topic and any comments people left.
  6. Put it all in a spreadsheet, and then look for the pattern – group similar/related things together. If, for example, you see most people in the segment you want to serve talk about legal matters, then you know they have a legal need. Etc.
  7. Figure out what’s standing in the way
  8. Why are they struggling to solve that specific problem? Are existing solutions too expensive, non-existent or inaccessible? What’s the obstacle?
  9. Your ideal product/service idea is one that removes that obstacle. I.e. you create the service, make it more accessible or cheaper, or whatever’s needed.

Next steps: Regardless if you’re eyeing corporates or SMEs, the next step is not to build. Offer it as a service, first. Try get in with a corporate personally to solve the problem for them – as in build some custom software or offer your service as a consultant to a few solos. That way you can charge some money, and refine the idea in a real-world situation, all while getting ready to build the tech and scale.

Got a method for finding problems worth solving? Hit reply and let us know…

THE RESULTS

Last week, we asked about your fave township opportunity and 27.5% say managing backroom rentals is the gig. But there’s a lot of interest in almost every aspect of this market — including avoiding it altogether.

🟩🟩🟩🟩🟩🟩 🏠 Backroom rentals management (27.5%)
🟨⬜️⬜️⬜️⬜️⬜️ 💄 The beauty industry (7.5%)
🟨🟨🟨⬜️⬜️⬜️ 🏢 Spaza shop rentals (commercial real estate) (15%)
🟨🟨🟨⬜️⬜️⬜️ 🛍️ Spaza shop retail (12.5%)
🟨🟨🟨⬜️⬜️⬜️ 🍔 Informal fast-food market (15%)
🟨⬜️⬜️⬜️⬜️⬜️ 🍺 Taverns and shebeens (7.5%)
🟨⬜️⬜️⬜️⬜️⬜️ 🚐 Taxi industry (5%)
🟨🟨⬜️⬜️⬜️⬜️ 🚫 Nope, I’d rather focus where it's comfortable (10%)

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