E1 CEO Rodi Basso on Innovating the New Powerboat Racing Series

Entrepreneur

4 days ago

In just its second season, E1 is already making a name for itself as a global brand with far-reaching popularity.
Entrepreneur traveled to Monaco to watch the E1 race, an all-electric international powerboat racing series that takes place in various locations around the world throughout the year. The league is in its nascent phase — just the second season — with major plans for expansion. While in Monaco, surrounded by picturesque views of the Mediterranean Sea, Entrepreneur interviewed Rodi Basso, the CEO and co-founder of E1, to learn about the strategy, vision and business objectives for this new boat-racing series. Here is that conversation, which has been edited for length and clarity.
Entrepreneur: Tell me a little bit about the genesis of E1 – what inspired its creation, and how did you identify a market for electric boat racing?
Basso: The E1 series is a new sport platform that is based on the idea of protecting and celebrating the [marine] lifestyle for future generations of people who either live near waters, lakes, oceans, rivers or go to nearby coastal areas to enjoy it.
We come from the motorsport culture, where [with] a technological and data-driven approach, we have seen how much it can make a difference, not only in the sporting industry, but also in the commercial environment. And so, together with Alejandro [Agag] (co-founder and chairman of E1), we identified a gap in the marine industry.
We wanted to build a new platform to showcase [and] test new solutions. And from now on, we will keep developing this platform in order to really have an impact.
How would you describe E1's core business model? Where do the main revenue streams come from, and how do you see them evolving?
We worked a lot on the strategy and the business model. I'm very passionate about this part. We base our business on the hosting fees. So, we select iconic places where there is funding for the race. Then, we own the boats, and we provide the teams [with] all the logistic services, high-level maintenance of the boats, all the telemetry and technology.
The teams pay us in order to receive these services. And then, of course, sponsors and media. Now, the more we go forward, the more the media will notice us because the numbers are already quite impressive in terms of fans, viewers, digital media and broadcasters — we are very pleased with the results.
And so, let's say in the region of 10-15 years, I expect media to become another big revenue stream, of course, with sponsorship as well.
Image Credit: Shiv Gohil | Spacesuit Media
You mentioned hosting cities. We are in beautiful Monaco right now. How do you go about selecting the cities that you want to partner with, and what makes a city a good fit for the E1 brand?
Well, as I mentioned, E1 is about the lifestyle near the waters. So, we look for iconic places where everybody wants to go and visit. We are in Doha, Jeddah, Dubrovnik, Italy, Miami and Lagos soon — places where either there is a strong and deep culture of the marine lifestyle [or] the yachting lifestyle at all levels.
We are not [targeting] one particular segment; we offer exclusive hospitality, but also a more open fan zone [where] everybody can come for free and feel a bit like celebrities while enjoying the show.
So, it's important to be in iconic places where there is a lot of care for the future generations and the future of water mobility.
Related: Want to Win in Business? Start Thinking Like a Race Car Driver
Is there a dream city that you would love to expand E1 to?
Asia is important. We want to be in Tokyo, Sydney, Singapore, Hong Kong, China, India. In Asia, there is a lot of culture about powerboating in general. So we come with this new product, and I am very curious to see the reaction of people there. For me, North America is also very important for the simple reason that 75% of the markets for leisure boating are in North America.
We also have talents owning the teams, and many of them are based in America or are Americans — so that's another important part to expand.
How does E1 differentiate itself from other racing leagues, both in terms of the fan demographics and commercial viability?
Well, first of all, we started seeing the numbers and the statistics, and we [saw] a nice balance between the female and male fans watching our product. Also, in terms of generations, the center of gravity is between 25 and 30 years old, which is another good result.
Of course, we talk to governments, we talk to big businesses that are interested in knowing more and having us, but in the meantime, it's very important to talk to the future generation because we want to make sure that we have fans in the future. So we have to attract them and somehow share with them everything that we have learned about technology, and also, the need for the blue economy.
Entrepreneur note: The "blue economy" refers to the sustainable use of ocean and water resources for economic growth, improved livelihoods and jobs, while preserving the health of marine and freshwater ecosystems.
You've brought on high-profile team owners like Tom Brady, Will Smith, Marc Anthony, LeBron James and Rafael Nadal. Talk a little bit about how the celebrity factor plays into the growth strategy for E1 as a global brand.
It's an incredible honor and privilege to have team owners. They are inspiring people [who] have always been working at the edge of excellence in sports and entertainment — because this is also what we are [about]. They represent our ethos as well. We are also very pleased that they are part of E1 because they're interested in being part of an impactful project. And at the same time, they're interested in the business side, and they could see a good business to invest in, be part of and grow together.
Their presence is unique in our proposition because by putting together all [their] followers, we reach 1.1 billion people who can watch our content through digital media. And [the owners] are active; they post, they interact and collaborate.
For us, being only [in] season two, it's a massive advantage.
Related: 'You Always Have to Reinvent Yourself': Tom Brady Just Revealed His Next Big Move
What are some of the biggest challenges you've had to navigate in launching and scaling E1?
In terms of challenges, in the very beginning, [we had] technical challenges in the definition of the foils, understanding how the foils work, and also finding the pilots, because now we have 18 pilots, nine teams, one male, one female, and they alternate. We are pretty new in the sports industry, and I'm very proud to say that [the pilots are] coming from 11 nationalities. That's an incredible asset for us.
We built an academy, and in the end, you never know if the people are going to respond or not, if they were excited, and we were so pleased to have [about] 20 applications [for pilots]. And we were looking only for 20 pilots, so there was a very good result to start with.
Then it's a completely brand new proposition, that is coming as a meeting point of motorsport, powerboating and sailing, and we wanted to get the best out of these three environments and also to attract the people who love being on the water and love racing.
I think we selected the right people. We have an amazing team, and the events are developing themselves and working well.
Entrepreneur note: "Foils" refer to a part of the boat that acts like underwater airplane wings — lifting the boat out of the water as it gains speed, reducing drag and increasing efficiency, speed and maneuverability.
Image Credit: Birgit Dieryck | Spacesuit Media
A major component of E1 is its environmentally conscious bent. Why was that so important to you, and how do you balance being environmentally sustainable with commercial success and scalability?
I was working in other companies before; I'm an engineer, and I was a sales and marketing director at Magneti Marelli and a managing director at McLaren Technologies. [I've] always been working on new propulsion systems, electric and everything. I'm [also] very passionate about the water simply because I come from a southern city in Italy — Napoli — and I live and breathe the water lifestyle since I was born.
So I combined competence and passion in order to build E1. And while building E1, I learned so much about how much we need to do for the water. We are also proud to have Carlos Duarte, an incredible scientist [with the] Japan Prize in marine biology and engineering, and he's telling us how much we need to do for coastal areas, water quality, for the blue economy and how many opportunities there are in terms of future jobs. So I am very, very passionate about this. I don't like to call it a strategy because when you do so, you've got a manager ticking boxes. It's the way we are; it's a culture while we are developing this new sport platform.
Related: Sustainability Is No Longer a Choice for Your Business — It's a Core Business Strategy
You talked about your background as an engineer. How are technology and innovation — both in terms of the boats themselves and digital engagement — harnessed to create business opportunities for E1?
If we talk about digital, the first thing that pops up in my mind is digital media, and today, this is a massive way to reach people and to communicate our message. When I talk about innovation, it's not only about the boats; we have also innovated in our media product with some compelling AR and VR applications that we also use for business development.
[We use] drones with the best possible resolution and video quality. We have [around] 100 people working on the content technologies, and that's all about digital. So, it's an important factor and opportunity for us to keep innovating in this field. My next [area of] interest is how we can use AI, because it's not only a buzzword, but it's something that is just happening.
I'm very excited every time we can disrupt and differentiate ourselves through technology.
E1 is very young, and in a sense, is sort of like a startup. How do you lead a team when you're inventing a category as you go, and what advice would you give to other prospective startup founders and CEOs?
Well, with startups, it's always full-on, you know? Never a dull day. Everybody talks about passion. The passion is a spark for the vision, for the idea, but then, it takes a lot of hard work.
People like to say, "Work smarter, not harder" — good luck with it. There is a lot of hard work. You need to select the right people and [give them] clear roles and responsibilities. It's something that I wish [for] everybody, that I wish [for] my sons, because it's an incredible journey when you actually know yourself much more under pressure.
If this magic happens, then you'll be successful. So there are a few factors, but it is an amazing journey that I will do again.
Join top CEOs, founders and operators at the Level Up conference to unlock strategies for scaling your business, boosting revenue and building sustainable success.