‘We’re Building a Product in a Hot Market’: How Betty Labs CEO Built a Clubhouse for Sports Fans (Exclusive)

Ben Bergman

Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.

‘We’re Building a Product in a Hot Market’: How Betty Labs CEO Built a Clubhouse for Sports Fans (Exclusive)
Photo by Joshua Hoehne on Unsplash

Things are moving rapidly these days in startupland, particularly in the suddenly crowded red-hot audio space.

Just six months ago, Betty Labs pivoted for a third time – from sports gambling to live audio – and the third time proved to be the charm, as Spotify announced Tuesday it was buying the Los Angeles company for an undisclosed sum.


Betty Labs' Locker Room app is often likened to a sports version of Clubhouse, the much-hyped live audio app that has hosted conversations with the likes of Elon Musk and Bill Gates. But Betty Labs co-founder and CEO, Howard Akumiah, says he actually first saw the appeal of audio conversations after he realized users were more interested in talking to each other than wagering on games.

"The major thing we learned building products around sports betting is that the most important thing you can do for sports fans is facilitate communication between them," Akumiah told dot.LA in a wide-ranging interview before the sale was announced.

Still, he does not deny Clubhouse, which recently raised new funding led by Andreeson Horowitz at an eye-popping $1 billion valuation, has been helpful.

"We're building a product in a hot market," Akumiah said.

He admits people being cooped up inside all day unable to go to sports bars — much less games themselves — has also been beneficial, but he does not think Locker Room's appeal will diminish when life returns to normal.

"People want to talk regardless of whether it is pandemic or post pandemic," Akumiah said. "I think that will continue to be true."

Akumiah started Betty Labs in San Francisco in 2018, when he was still a product manager at Pinterest, as a way to make sports wagering more accessible to a wider audience, hence the name Betty Labs.

"Betty was a personified sportsbook," Akumiah said. "The idea was that you could text this number and Betty would text you back to make bets that were related to what was happening in the game that you were watching live."

Akumiah, who was the one texting people back, soon started getting more action than he could handle.

"I went from hacking this fun thing during the NBA playoffs to basically being an illegal bookie with 500 people on my book," Akumiah remembers. "So I quit my job, shut the product down and I raised a little bit of money to start exploring what was possible."

Akumiah moved to Los Angeles and began hiring.

\u200bBetty Labs co-founder and CEO Howard Akumiah

Betty Labs co-founder and CEO Howard Akumiah

"I moved to L.A. to get closer to the people who would ultimately use the products that we built," Akumiah said. "When I was talking to people about what I was wanting to build in San Francisco, I was met with a lot of confusion."

Betty Labs launched an app called Sideline in 2019, which offered live in-game predictions for sports betting. The predictions aspect did not take off but the social features did.

"People were coming to the Sideline app to talk to other fans about games that they were watching on television," Akumiah said. "If we wanted to take it to the next level, we needed to add audio because we needed to create a medium that is endemic to sports like sports talk radio and podcasting," Akumiah said.

The company raised a $9.3 million seed round last October, with backing from Precursor Ventures, Chapter One Ventures, Maveron, Amazon Alexa Fund, Lightspeed Venture Partners, MaC Venture Capital, and M13. NBA stars Kevin Durant, Andre Iguodala, Baron Davis also participated in the round.

The same month, Betty Labs released Locker Room so users could talk to each before, during or after games. And in this case, talking is what users really wanted to do, a throwback to a time before online chatting, texting or e-mailing.

"I think of the growth in audio not from the consumption side, but actually from the creation side," Akumiah said. "The average person is realizing that they don't have to prepare any materials. They don't have to convert their thoughts to type. They don't have to create a video. They can just begin speaking what's on their mind."

It's not just fans talking to each other. Andre Iguodala and Indiana Pacers center Myles Turner have hosted live Q&As. Mark Stein, the well-sourced New York Times NBA writer, signed a deal with Locker Room last month.

"Instead of doing a podcast, he's going to do regular rooms on Locker Room where answers people's questions about the league and shares his insights," Akumiah said.

Spotify's acquisition is not only a large shift for Betty Labs, but also for the Swedish audio giant. It's Spotify's first major foray into live audio. Interestingly, the company said it plans to soon expand Locker Room well beyond sports to offer conversations focused on music and cultural programming.

"Creators and fans have been asking for live formats on Spotify, and we're excited that soon, we'll make them available to hundreds of millions of listeners and millions of creators on our platform," Gustav Söderström, Spotify's Chief Research & Development Officer said in a statement.

Akumiah added this is an email Tuesday: "Joining Spotify unlocks the ability to grow quickly and deliver that same platform and experience to other communities of passionate fans, whether they want to talk about music, culture or sports."

Spotify is not alone trying to take on Clubhouse. Twitter recently launched a live audio feature, Spaces, and Facebook is reportedly at work on a similar function.

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🚁 One Step Closer to Air Taxis in LA
Image Source: Joby Aviation

🔦 Spotlight

Joby Aviation, a pioneering electric air taxi company, has achieved a significant milestone by successfully flying a hydrogen-electric aircraft demonstrator for 523 miles with only water as a byproduct. This groundbreaking flight showcases the potential for emissions-free regional travel using vertical take-off and landing (eVTOL) aircraft, eliminating the need for traditional runways. The company's innovative approach combines its existing battery-electric air taxi technology with hydrogen fuel cells, paving the way for longer-range, environmentally friendly air travel.

For LA residents, this development holds exciting implications for future transportation options. Joby's technology could potentially enable direct flights from LA to destinations like San Francisco or San Diego without the need to visit conventional airports, offering a cleaner and more convenient alternative to current travel methods. The company's progress in both battery-electric and hydrogen-electric aircraft positions it at the forefront of next-generation aviation, promising to revolutionize urban and regional mobility.

Notably, Joby Aviation has already made strides in Southern California by securing an agreement with John Wayne Airport earlier this year to install the region's first electric air taxi charger. This strategic move sets the stage for LA to be among the initial markets where Joby will launch its electric air taxi service. With plans to commence commercial operations as early as 2025 using its battery-electric air taxi, LA residents may soon have access to a fast, quiet, and environmentally friendly mode of transportation that could significantly reduce travel times and traffic congestion in the region. In the not too distant future, LA might find itself in an identity crisis without traffic and excess smog 🤞🤞.


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Fuel Innovation: 7 Unforgettable Team Building Experiences in LA
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In today's competitive business landscape, team building activities have emerged as a crucial tool for fostering a positive work environment, enhancing productivity, and crucially, improving employee retention. Studies have shown that such activities help employees feel valued, with one report indicating that 93% of those who felt appreciated were more motivated at work. Importantly, team building events may improve retention rates, as employees who feel connected to their colleagues and company culture are more likely to stay long-term. With these benefits in mind, let's explore some of the most engaging and effective team building activities available in Los Angeles.

Pickleball

Image Source: Modern Luxury Angelino

Pickleball is a fantastic team bonding activity because of the easy-to-grasp rules and gentle pace make it perfect for everyone, regardless of age or fitness level. The game thrives on communication and teamwork, as players must collaborate and strategize to outplay their opponents, boosting team cohesion. Plus, the lively, fast-paced action sparks friendly competition and laughter, creating a fun and spirited atmosphere that brings everyone closer together. Los Angeles boasts numerous pickleball courts that are easy to rent if you have your own equipment. If you need additional assistance organizing your pickleball outing, there are plenty of full-service companies ready to handle every detail for you.

Resources: Pickle Pop, Corporate Pickle


Escape Room

Image Source: The Escape Game

Escape rooms are a great way to build camaraderie. They require participants to work together, combining their problem-solving skills and creativity to overcome challenges and puzzles. The immersive and time-sensitive nature of escape rooms fosters collaboration and communication. Additionally, the shared experience of tackling complex tasks and reaching a common goal helps build trust and foster positive emotions among colleagues.

Resources: The Escape Game, 60Out


Day Trip to Catalina Island

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Catalina Island is a perfect day trip for a team because it provides a break from the usual work environment, allowing team members to relax and connect in a new setting. Shared experiences during the trip, such as exploring new places and participating in fun activities, help build stronger relationships and foster a sense of camaraderie. There are numerous team-building activities such as an arboreal obstacle course, an island tour, scavenger hunts and more.

Resources: Catalina Island Group Activities


Top Golf

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Topgolf is an excellent team building event because it provides an inclusive, relaxed atmosphere that accommodates players of all skill levels, fostering personal connections and improving team morale. The unique blend of competition and entertainment creates an ideal setting for building trust, enhancing communication, and revealing hidden skills among team members. Additionally, Topgolf offers structured team building packages with guided activities, discussion prompts, and lessons on culture, change, collaboration, and strategy, making it a versatile and effective platform for strengthening relationships and boosting overall team performance.

Resources: Topgolf El Segundo


SoFi Stadium Tour

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A SoFi Stadium tour offers a unique, behind-the-scenes experience of one of the world's most advanced sports venues, allowing team members to explore exclusive areas like premium suites, team locker rooms, and the player tunnel together. The tour provides a shared, memorable experience that can foster camaraderie and spark conversations among team members, regardless of their interest in sports. Additionally, the stadium's state-of-the-art features and impressive architecture can inspire creativity and innovation, while the group setting encourages interaction and collaboration, making it an engaging and enjoyable activity for teams of various sizes and backgrounds

Resources: SoFi Stadium Group Tours


Corporate Volunteering

Image Source: L.A. Works

Volunteer work serves as an excellent team building activity by uniting employees around a shared, meaningful cause, fostering a sense of purpose and collective accomplishment. It provides opportunities for team members to collaborate in new ways, often revealing hidden strengths and leadership qualities that may not be apparent in the regular work environment. Additionally, engaging in community service can boost morale, enhance the company's reputation, and instill a sense of pride among employees, leading to improved workplace relationships and increased job satisfaction.

Resources: Habitat for Humanity, L.A. Works, VolunteerMatch


Corporate Improv Sessions

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A corporate improv class encourages spontaneity, creativity, and quick thinking, skills that are valuable in the workplace. It promotes active listening and collaboration, as participants must work together to create scenes and respond to unexpected situations, fostering better communication and trust among team members. Additionally, the playful and often humorous nature of improv helps break down barriers, reduces stress, and creates a shared positive experience that can improve team morale and cohesion long after the event.

Resources: Improv-LA, Groundlings, Improv for the People

🎬 Paramount and Skydance Are Back On
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Happy Friday Los Angeles! Hope you all had a fantastic Fourth!!

🔦 Spotlight

Paramount and Skydance Media have rekindled talks to merge after negotiations abruptly halted in June. The proposed deal, contingent on approval from Paramount’s board, aims to combine Paramount’s extensive media holdings—including CBS, MTV, and Nickelodeon—with Skydance’s film expertise showcased in hits like "Top Gun: Maverick." This merger signals a potential transformation in the media landscape, positioning the new entity to compete more effectively amid challenges from streaming services and the decline of traditional cable TV.

Led by Shari Redstone, Paramount’s controlling shareholder via National Amusements, the deal represents a pivot towards revitalizing Paramount’s strategic direction amidst financial struggles and shareholder concerns. The involvement of major investors like RedBird Capital Partners and David Ellison underscores the financial backing aimed at stabilizing Paramount’s operations and addressing its $14 billion debt burden. Importantly, the agreement includes provisions to protect National Amusements from potential legal challenges, addressing previous hurdles that stalled earlier negotiations.

The deal also includes a 45-day period for Paramount to explore alternative offers, highlighting continued interest from other potential buyers like Barry Diller’s IAC and media executive Edgar Bronfman Jr. This flurry of activity underscores the significant stakeholders’ interest in Paramount’s future and its potential as a key player in a rapidly evolving media industry.


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  • Sidecar Health, a startup that offers personalized health insurance plans to businesses that allow members to see any doctor and pay directly at the time of service, raised a $165M Series D led by Koch Disruptive Technologies. - learn more

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