NORTH AMERICAN SPORTSTECH REPORT NORTH AMERICAN SPORTSTECH REPORT #NASTR21 01 About this report
A year like no other The eagle eye view No rest for the wicked We started our series looking back at the European Now onto the North American report. As always, we try to The pace at which SportsTech is growing is already SportsTech market and now it’s time to turn our a ention to bring you the most important facts, figures and trends, this fascinating, but the different areas driving this growth makes North America. Our fall lineup of reports, Global VC, year with fewer pages but even more insights. And there are it almost impossible to keep up with. In only the last six FootballTech and FitnessTech, gave us an idea that 2020 was certainly some interesting ones. months we’ve seen Fitness, Be ing & NFTs breakout in a big not going to be the quiet year for SportsTech that we thought way. And that is without even considering the strong growth 2020 is projected to be the biggest year for investment in it would be at the height of the pandemic. But now, looking that Esports and Content have also seen during the SportsTech, crossing $2.4b a er a 15% adjustment for back on what was an incredibly unique year, quiet is the last pandemic. That’s a lot of rocket fuel for this ship, so team reporting lag. That's 10% more than the previous record of word we’d use. SportsTechX is certainly strapped in tight. Can’t wait to see 2018 and more than double 2019. Given the pandemic, where we fly to next. But before we jump into our analysis of the North American surely not many saw that coming. market, a quick word on what we’ve got lined up for 2021. This New York continues its reign as the SportsTech capital of is the second in our three-part series of geography based North America and indeed the world. But San Francisco Benjamin Penkert overviews on the SportsTech market, with Asia-Pacific to closed the gap significantly in 2020 as the Californian Founder at SportsTechX [email protected] follow soon. This time we’ve expanded the scope to include cities gained momentum with Los Angeles emerging as Australia, one of the few places in the world with stadiums full the third most active market for deal making. Toronto also of fans, and New Zealand. Our fall reports lineup could be the broke into the top five cities in 2020, confirming it as the Rohn Malhotra same as last year or could have a topical addition, only time major hub in Canada. Co-founder at SportsTechX will tell. [email protected] Fitness was the dominant theme of 2020, not only in North We’re most excited though about our latest launch, Hello America but across the globe. And there were two stories SportsTech, where we shine a spotlight on the coolest unique to the American ecosystem that definitely deserve #NASTR21 products and apps from the world of SportsTech. There is a ention: the emergence of SPACs and the legalization of even a live weekly news show where we go through the top sports be ing. We took a deeper look at the impact of all stories in SportsTech, which is also available as a podcast in these fast growing trends. case our faces aren’t pre y enough. As always, our goal is to help you filter through the noise and bring you the Certainly, 2020 was a fascinating year for the SportsTech information you absolutely need to know. space which will shape the way the industry grows over the next few years. And 2021 has already presented a brand new hot topic point with the buzz around NFTs making things all the more exciting. NORTH AMERICAN SPORTSTECH REPORT #NASTR21 02 Foreword from our partner: SIGNA Sports United
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Berlin signa-sportsunited.com NORTH AMERICAN SPORTSTECH REPORT #NASTR21 03 The North American SportsTech Innovators 2021
A selection of 28 individuals who are collectively driving the growth and the success of the ecosystem through their engagement in new and leading initiatives. We are proud to have them in our report.
Alexander Bente Brian Kopp Brian Zwerner Christoph Sonnen Cole Van Nice Cordero Barkley Dr. Cheri Bradish James Santore Jasmine Robinson Jeff Kunowski ADvantage Sports Tech Fund Phoenix Sports Partners Beyond The Game Network leAD Lake Nona Sports & Elysian Park Ventures TitletownTech Future of Sport Lab SeventySix Capital Causeway Media Partners Global Sport Venture Health Tech Academy Development
Jeff Volk Joe Pimmel Johannes Lerchen John Spinale Jordan Fliegel Josh Chapman Kate Delhagen Kyle Bunch Lance Dietz Marilou McFarlane VC Sports Stadia Ventures Mindspring Capital Jazz Venture Partners Techstars Sports Konvoy Ventures Oregon Sports Angels Global Sports Venture KB Partners Women in Sports Tech Studio (RGA)
Matilda Sung Nate Raabe Nate Thompson Ryan Bell Thomas Alomes Thomas H. Rudy Tim Hayden Vasu Kulkarni Ludis Capital Rx3 Growth Partners HTX Sports Tech Comcast NBCUniversal Sports Innovation Texas WhiteRock Capital Stadia Ventures Courtside Ventures SportsTech NORTH AMERICAN SPORTSTECH REPORT DATA SOURCE: SPORTSTECHDB.COM #NASTR21 04 Key Insights - North American SportsTech 2021
1 Funding 2 Trends 3 Ecosystem
$2.15b funding in 2020 SPACs take over: 25 Investment Companies California 55% New York City 26% The hottest deal in Sports In North American SportsTech
49% into ‘Athlete-solutions’ sector FAANGs into Fitness: 6 Accelerators / Incubators Top sub-sector: Activity Hardware 37% Big Tech gets active In North American SportsTech Before / After Activity 21%
$450m into Zwift in 2020 Sports betting unleashed: 7 Innovation Initiatives $285m into ClassPass 7 of top 10 deals in fitness Raising the stakes In North American SportsTech
Icons made by Freepik from www.flaticon.com. Numbers excluding undisclosed Deals/Acquisitions NORTH AMERICAN SPORTSTECH REPORT #NASTR21 05 SportsTechX - Market Intelligence for investors & professionals
About Us Services Insights
SportsTechX is the #1 source for data & insights about startups Database Reports & innovation in Sports. Our mission is to promote and navigate Leading global database that provides Industry-leading reports that combine facts and the global SportsTech ecosystem. high-value market intelligence for investors figures with qualitative insights. and professionals in SportsTech. Helps to find We frequently publish content in formats such as the best startups & initiatives to engage with. industry-leading reports, podcasts and newsle ers, and appear Newsle er as keynote speakers at events. Our insights are based on our Cu ing through the noise with topic features, SportsTech Framework which provides a systematic structure Market Analysis interviews & major industry updates. to find, compare and assess all things SportsTech on a global Customised in-depth research and consulting level. on various aspects of the SportsTech market. Blog We work with investors and organisations in sports and Includes connecting investors and Market insights with event reports, landscape adjacent industries helping them with market analysis and organisations with startups/scaleups. overviews and startup related articles. connecting them with startups. We also support select startups in business development and fundraising. Marketing Podcast Promotion opportunities for organisations, brands & startups/scaleups to increase their Showcasing startups and relevant initiatives from visibility in the SportsTech industry, e.g. by the world of Sports & Tech. placements in our reports or podcasts. LinkedIn Group Community of SportsTech enthusiasts who share the latest news and updates. NORTH AMERICAN SPORTSTECH REPORT #NASTR21 06 Hello SportsTech - Showcasing cool, new products in Sports & Technology
Product reviews Interesting use cases Weekly top news
Testing SportsTech apps and devices in short and Cool stuff from the world of Sports & Tech, Weekly show available as livestream, on-demand easy-to-consume video clips presented in max. 15 seconds each and podcast formats
Click the logos to visit our channels NORTH AMERICAN SPORTSTECH REPORT #NASTR21 07 The SportsTech Framework - A systematic approach to the industry
About the framework SportsTech Framework We introduced the framework in 2017 in order to provide a common understanding and structure for the For Athletes For Fans For Executives SportsTech ecosystem. Since then we have constantly Activity & Performance Fans & Content Management & Organisation enhanced it, to ensure that it’s the best and most up-to-date tool to identify, compare and assess all things SportsTech on a global level. For Activity - Hardware Content Platforms Organisations & Venues Wearables News & Content Team & Club Management In this latest update, the three main sectors remain the Equipment & Infrastructure Streaming Platforms League & Event Management same as before and are organised based on their target Stadium & Facility Management audience: The Athlete, The Sports Executive and The Fan. However we have made some updates to the next level of classification - sub sectors and sub-sub sectors For Activity - So ware Fan Experiences Media & Sponsors - which provide additional levels of detail and a deeper Tracking & Analytics Fan Engagement Media Production understanding. You’ll find a detailed explanation of the Classes & Tutorials Ticketing & Merchandise Sponsorship updated framework on the following page. This framework forms the core of all our intelligence, e.g. the reports and the database.
Before / A er Activity Fantasy Sports & Be ing Even though the framework is proven-in-practice, there will always be situations in which startups can be Booking & Discovery Fantasy Sports assigned to two or even more sub or sub-sub sectors, Recovery & Injury Prevention Be ing which simply cannot be avoided. We invite everyone to Coaching & Recruitment Enablement share their feedback as we’re always looking to further optimize our work. March 2021 @sportstechx | sportstechx.com NORTH AMERICAN SPORTSTECH REPORT #NASTR21 08 The SportsTech Framework - Structure and Descriptions
For Athletes - Activity & Performance For Fans - Fans & Content For Executives - Management & Organisation This sector covers all solutions focused on the Athlete, whether This sector is all about how sports connects to or is consumed by Fans All solutions that help Sports Executives perform their responsibilities. professional, amateur or recreational. These are related to the actual and viewers. All of these are solutions focused on the fan and so will Whether it’s managing sports facilities, teams, associations, leagues, sports activity, whether it’s before, during or a er it. Common goals are include content, merchandise or be ing and fantasy sports. Goals events, gyms or media companies. Goals here usually relate to tracking performance, preventing injuries & finding sports to play. typically include a be er involvement and experience of fans related to improving operational efficiency or providing a be er experience to the the athletes, teams and sports they like. end consumer. For Activity - Hardware: Physical resources worn/used during an activity. Content Platforms: Platforms that provide access to various forms of Organisations & Venues: Solutions to help sports related organisations content (both as consumers and creators), either video, audio or text Wearables: A achments to the body of the athlete or the surface of or venues with managing internal operations. based. playing equipment used. Team & Club Management: Tools for professional or amateur sports News & Content: Original / editorial content, o en about sports teams Equipment & Infrastructure: Movable physical equipment or immovable teams, clubs or gyms. or athletes, or content related to live sports news & results. resources installed on premises that are used to perform an activity. League & Event Management: Tools for organisers of leagues, Streaming Platforms: Sports streaming platforms, both live and For Activity - So ware: Applications or platforms that support the tournaments, races or major events. on-demand. athlete during the activity, o en to improve performance, either through Stadium & Facility Management: Solutions for stadiums or sports tracking the activity and providing feedback or by training guidance. Fan Experiences: Solutions and offerings to enhance the sports facilities that help make operations or fan / client organisation easier. experience and to involve fans with their preferred sports commercially. Tracking & Analytics: Tools that capture and track key metrics of sports Media & Sponsors: Solutions that are either for or connect with the activities and provide insights. Fan Engagement: Helping fans connect with their favorite athletes, media, or sponsoring brands. teams and sports as well as other fans to enhance their experience. Classes & Tutorials: Platforms that provide access to classes, videos Media Production: Tools to make broadcasting easier and richer. Ticketing & Merchandise: Platforms for fans to purchase, sell or trade and tutorial guides (both live and on-demand) to be active, learn new Sponsorship: Platforms to connect brands with teams and athletes for tickets for events or merchandise & memorabilia from teams & athletes. skills and help improve performance. sponsorship. Before / A er Activity: Hardware or So ware solutions that help an Fantasy Sports & Be ing: Solutions to place real or play money on athlete either prepare for an activity they are about to perform or sports events and online games based on real or virtual teams. recover a er it. Fantasy Sports: Fantasy sports or sports prediction games. Booking & Discovery: Platforms to discover and book venues, find Be ing: Platforms to place sports bets. players or sports events locally or while traveling. Enablement: Tools to aid the sports be ing industry, be ors or fantasy Recovery & Injury Prevention: Applications to reduce the likelihood of sports gamers. injury or help speed-up / ensure recovery. Coaching & Recruitment: Tools to improve performance by providing training & guidance or helping connect with coaches and scouts. NORTH AMERICAN SPORTSTECH REPORT #NASTR21 09
CONTENTS
1 Facts & Figures 10 2 Trends & Features 17 3 Ecosystem Overview 25
The most important investment numbers in North Three deep dives into innovation trends at the A comprehensive overview of the North American American SportsTech over the last five years. Looked forefront of the sports industry, all driven by tech SportsTech ecosystem covering investors, at from geographical, sector and startup companies. Also includes feature interviews with accelerator / incubator programs and innovation perspectives. SportsTech startups. initiatives. NORTH AMERICAN SPORTSTECH REPORT #NASTR21 10
FACTS & FIGURES
North American Funding Development 11 Leading Countries & Cities 12 Leading Sectors 14 Leading Startups 15 1 NORTH AMERICAN SPORTSTECH REPORT DATA SOURCE: SPORTSTECHDB.COM #NASTR21 11 2020 projected as biggest year in investment
Funding Amounts & Number of Rounds 2016 - 2020 in North American SportsTech Average & Median ticket sizes soar “What a way to start the year!” was something quite a Amount in $m Funding Rounds few startups would have said as January 2020 saw over 2500 $530m invested in North American SportsTech startups. Total amount: 2,443.9* And even though the next few months were full of 2,233.3 8.79b / 9.11b* caution from investors, that positive sentiment returned 2,125.2 with a bang. Especially in September where investments
2000 1,945.0 crossed a mammoth $570m! Adding a 15% reporting lag, 3.41 2020 is projected to be the biggest year for investments in North American SportsTech to date. An incredible statement to make in the face of the dysfunction and 2.99 1500 chaos Covid-19 caused. 1,945.0 The number of deals completed does seem low, dipping 1,173.2 below 200 for the only time in five years. Perhaps expectedly so. Though it means the average ticket size 1000 looks really strong at $16.5m for now, compared to a range of $6-9m seen in previous years, this figure is likely to reduce slightly as more lower value deals are made public. That said, it is still an incredibly high number. And
500 supported by a median deal size of $3m, it is another 299 indicator that plenty of investors had the appetite to 267 265 252 185* place big bets in the face of uncertainty.
While we speak about North America in general, the 161 0 investment conversation in the region is steered by the 2016 2017 2018 2019 2020 soaring American Eagle. The U.S. alone accounts for 97% of all investments in North America since 2016. * Incl. estimated reporting lag NORTH AMERICAN SPORTSTECH REPORT DATA SOURCE: SPORTSTECHDB.COM #NASTR21 12 Big 3 unchanged overall, continue in 2020
California leads in 2020 States by Funding 2016 - 2020 in North American SportsTech States by Funding in 2020 in North American SportsTech Given the one-sidedness of the North American
Country Amount ($m) Rank by # of Country Amount ($m) Share of top ecosystem, we felt it would be interesting to look at the Startups deal 0 0 funding distribution by states / provinces in the U.S. and 1 New York 3,459.8 2 1 California 1,159.4 38.8% Canada. New York, California and Massachuse s topped the list since 2016 and also in 2020, no surprise 0 0 2 California 3,133.6 1 2 New York 554.3 51.4% given the importance of their respective capitals in the overall SportsTech ecosystem. Though New York tops 0 +1 the list since 2016, California has retained the top spot in 3 Massachuse s 678.0 6 3 Massachuse s 129.1 77.4% 2019 and 2020 indicating the state's growing 0 +1 importance. In fact, California is home to five cities in 4 Utah 201.4 26 4 Ontario 67.5 96.3% each of the top 10 cities list shown on the next page.
+1 +27 5 District of Columbia 152.4 22 5 Tennessee 65.0 100.0% Since 2016, the list remains largely unchanged except for Florida which gained three places to enter the top 10. -1 +8 The 2020 list sees more changes, though it must be 6 Washington 149.5 7 6 North Carolina 28.2 88.6% noted that four names (Ontario, Tennessee, North
+1 +14 Carolina, Washington) enter the top 10 on the back of 7 Ontario 134.2 4 7 Colorado 25.0 56.1% one big deal which accounts for 88% or more of the
-1 +15 funding noted in the state. Tennessee, Colorado and 8 Texas 128.2 3 8 Florida 22.2 45.0% Florida were the major winners, jumping 27, 14 and 15 places respectively. The funding amounts might still be +3 -1 9 Florida 88.1 5 9 Illinois 13.2 57.2% relatively small compared to the big three but the emergence of other hubs are healthy signs for the 0 -1 ecosystem overall. 10 Colorado 68.7 9 10 Washington 11.3 88.5%
+/- Rank change compared to previous year +/- Rank change compared to previous year NORTH AMERICAN SPORTSTECH REPORT DATA SOURCE: SPORTSTECHDB.COM #NASTR21 13 NYC SportsTech capital, San Francisco strong second
Toronto spearheads Canadian market Cities by Funding 2016 - 2020 in North American SportsTech Cities by Funding in 2020 in North American SportsTech New York City extends its unshakable hold on the title of
Country Amount ($m) Rank by # of Country Amount ($m) Share of top the North American (and global) SportsTech capital, Startups deal 0 0 nearly three times the size of it’s nearest rival San 1 New York City 3,449.4 1 1 New York City 548.1 52.0% Francisco. Though in 2020, the Golden Gate city bridged the gap significantly. Both cities also lead the way for the 0 +1 2 San Francisco 1,367.5 2 2 San Francisco 508.5 21.6% number of deals since 2016 and only in 2020. Perhaps more surprisingly, it is L.A. that appears third on both 0 +86 those lists, establishing itself as an important hub for 3 Boston 609.2 57 3 Long Beach 450.0 100.0% SportsTech. It was also the biggest gainer, climbing five +3 0 places in the 2016-2020 funding list. 4 Long Beach 607.2 5 4 Boston 104.1 96.0% Otherwise, the list since 2016 didn’t see many changes. +5 +2 5 Los Angeles 282.2 13 5 Toronto 67.5 96.3% Toronto is the only new entrant in the top 10 and the only Canadian city. In 2020 it appears much higher, coming in -2 NE fi h. Positive indicators for how that market is 6 Redwood City 211.6 6 6 Cha anooga 65.0 100.0% developing. On the other hand, the highest non-U.S. /
-1 +8 non-Canadian city since 2016 is Mexico City, ranked 142. 7 Logan 200.0 87 7 Santa Monica 61.9 35.5% Overall, the 2020 list was dominated by cities where a -3 +59 single funding round was the main reason for their 8 Santa Monica 170.2 10 8 Irvine 47.8 100.0% inclusion. Long Beach (Zwi ), Boston (Whoop), Toronto
-1 -4 (TheScore), Cha anooga (Echelon), Irvine (Hyperice) 9 Washington D.C. 152.4 67 9 Los Angeles 28.7 32.4% and Durham (Teamworks) all had a share of top deal at
+1 +63 over 95%. Another signal of strength for San Francisco is 10 Toronto 130.5 430 10 Durham 25.9 96.5% the fact that its top deal in 2020 accounted for only 22% of the city’s total funding. +/- Rank change compared to previous year +/- Rank change compared to previous year NORTH AMERICAN SPORTSTECH REPORT DATA SOURCE: SPORTSTECHDB.COM #NASTR21 14 Solutions For Athletes the main focus
Funding per Sector 2016 - 2020 in North American SportsTech Funding per Sub-Sector 2016 - 2020 in North American SportsTech
For Athletes For Fans For Executives For Athletes For Fans Activity & Performance Fans & Content
For Activity - Before / A er Fantasy Sports Organisations Hardware Activity & Be ing & Venues
29.8% 22.4% 26.2% 33.5% 48.9% 60.2% 66.5% 17.5% 44.7% 29.1%
21.4% Content Platforms Fan For Activity - Experiences Media & So ware Sponsors For Executives Management & Organisation
Activity & Performance, referring to solutions for professional or Looking across all eight sub-sectors, ‘For Activity - Hardware’ was far and away the leader with nearly 30% of all funding recreational athletes, a racted the most investment with 49% of all since 2016, jumping to 37% in 2020 as Fitness related hardware and wearables became increasingly popular. ‘Media & funding since 2016. Though this number rose sharply to 67% in 2020 Sponsors’ and ‘Content Platforms’ were the two other top sub-sectors but faded in 2020 as ‘Before / A er Activity’ bringing the sector into even more focus. ‘For Fans’ was 30% while ‘For solutions claimed the second spot, accounting for 21% of investment. Looking within each of the three sectors, both Executives’, mainly B2B, made up the rest. ‘For Athletes’ and ‘For Executives’ are dominated by one sub-sector, with ‘For Activity - Hardware’ and ‘Content Platforms’ each reaching shares of over 60%, while ‘For Fans’ has a more even split. NORTH AMERICAN SPORTSTECH REPORT DATA SOURCE: SPORTSTECHDB.COM #NASTR21 15 Fitness breaks out in 2020 and climbs in all-time list
Top Companies All-Time by Funding in North American SportsTech Top Companies 2020 by Funding in North American SportsTech
1 Bamtech Media 6 FanDuel 1 Zwift 6 Whoop Direct to Consumer video at scale Fantasy gaming and be ing platform At-home training for running, cycling & fitness Sleep and activity tracker
New York City $1,000.0m New York City $416.2m Long Beach $450m Boston $100m
2 Peloton 7 Discord 2 ClassPass 7 Discord Smart fitness equipment with community Voice and text chat for gamers Fitness classes booking platform Voice and text chat for gamers
New York City $994.7m San Francisco $379.3m New York City $285m San Francisco $100m
3 DraftKings 8 Whoop 3 Barstool Sports 8 theScore Fantasy gaming and be ing platform Sleep and activity tracker American sports news platform Sports news platform
Boston $768.0m Boston $204.8m New York City $163m Toronto $65m
4 Zwift 9 Tonal 4 Tonal 9 Echelon At-home training for running, cycling & fitness Smart at-home gym Smart at-home gym Smart at-home exercise bike
Long Beach $614.5m San Francisco $200.0m San Francisco $110m Cha anooga $65m
5 ClassPass 10 iFit 5 Strava 10 Tempo Fitness classes booking platform Smart fitness equipment Activity tracking for running and cycling Smart at-home gym
New York City $524.0m Logan $200.0m San Francisco $110m San Francisco $60m
For Athletes For Fans For Executives For Athletes For Fans For Executives
New entrants on this list are Whoop and Tonal, as investors continue being bullish There is no question that Fitness, specifically connected fitness devices, was the about the fitness space. In fact, Fitness will likely dominate this list even more in the most a ractive theme for investors in 2020, accounting for seven of the top 10 deals near future. Why? The total funding amounts for companies acquired (BAMTECH by in the year. Even Zwi , which had for a long time positioned themselves as a training Disney, FanDuel by Flu er) or IPO-ed (Peloton, Dra Kings) will not change. And of solution for cyclists, made the pivot into gamified fitness. Barstool Sports and the remaining six, five are in Fitness, with Discord being the only exception. theScore were the biggest deals in the content space. NORTH AMERICAN SPORTSTECH REPORT #NASTR21 16 Want more reports?
“The ecosystem player” “The strong challenger” sportstechx.com/estr sportstechx.com/apstr NORTH AMERICAN SPORTSTECH REPORT #NASTR21 17
TRENDS & FEATURES
SPACs take over: The hottest deal in Sports 18 FAANGs into Fitness: Big Tech gets active 19 Sports betting unleashed: Raising the stakes 20 Startup Features 21 2 NORTH AMERICAN SPORTSTECH REPORT #NASTR21 18 SPACs take over: The hottest deal in Sports
What’s the SPAC all about C’mon, be a sport Care to dance? So let’s start with some context. Special Purpose Acquisition So what does that mean for SportsTech? Well, a lot of SPACs were set So what can we expect? Well firstly, that we’re likely to see a flurry of Companies, or SPACs, are basically companies that raise money, up to focus on acquisitions in sports. Our own stellar SportsTechX acquisition activity. Or at least talks and/or a empts at them. As through an expedited IPO, to buy or merge with other companies, research team has identified 42 sports dedicated SPACs with around mentioned earlier, all these companies are meant to deploy this usually within a two year timeframe. They don’t sell or produce $13.5b waiting to be spent. In fact, 38 of those were formed since capital within a two year period and with most of them formed in anything and, in fact, generally don’t even have an acquisition target August 2020, so a lot of this money is quite new. And most such a short period of time, this will likely lead to a few bidding wars when they are formed. Which is why they are o en called importantly, it is already being spent. Dra Kings went public through for the most a ractive targets. And as the rich keep ge ing richer, the blank-check companies. The advantages? It’s cheaper and faster an SPAC in April 2020 and earlier this month we saw Sportradar demand heavy nature of the market will likely mean that any deal will than a traditional IPO and bypasses the regulatory headaches. follow suit, valuing them at $10b. Some happy early investors and at least be courted for a dance. The interesting thing to see is where founders there. everyone is standing when the music stops. Okay so why are we talking about them? Well because they were a really big deal in 2020. According to Yahoo Finance, 237 SPACs raised And more importantly, we see more SPACs announced nearly every Top 10 Sports SPACs nearly $80b in 2020 and CNBC reports that they already broke that week, a number of them including elite athletes: Shaquille O’Neal, record with $87.9b a er not even three months (!). Though SPACs Serena Williams, Patrick Mahomes, Naomi Osaka and Robert Company Name City SPAC Value ($m) have existed for a while, they have suddenly caught fire as the Lewandowski to name just a few, taking the idea of the athlete pandemic drove huge amounts of volatility in the market and investor to the next level. There are also a number of SPACs backed Flying Eagle Acquisition Corp Los Angeles, CA 1,725 investors looked for places to park their money. by team owners. The Sportradar deal we mentioned is with a SPAC Austerlitz Acquisition I Las Vegas, NV 600 led by Ted Boehly, minority owner of the LA Dodgers. Peter Guber US Sports SPACs timeline (GSW), Liberty Media (Formula1) and, famously, Billy Beane who Liberty Media Acquisition Corp Wilmington, DE 575 through RedBall Acquisition Corp was in talks (now reportedly failed) RedBall Acquisition Corp New York, NY 575 with Fenway Sports Group to buy equity into the team he once turned down. Third time’s the charm, not second. Horizon Acquisition Corp II Greenwich, CT 525
The herd nature of investments means that the number of celebrities Slam Corp New York, NY 500 and trusted names using SPACs adds more validity to a financial tool that was previously regarded as suspicious but now is considered the BowX Menlo Park, CA 420 smart investment option. Their relatively low risk nature, providing Sports Entertainment Acquisition Corp Palm Beach, CA 400 redemption rights, make them an a ractive option for investors. And for companies that are aiming to get listed, they can achieve that Marquee Raine Acquisition Corp New York, NY 375
goal. In possibly a few months instead of years. That’s quite a lot of Forest Road Acquisition Corp I New York, NY 350 time, money and hassle saved. NORTH AMERICAN SPORTSTECH REPORT #NASTR21 19 FAANGs into Fitness: Big Tech gets active
Ba le of the bands Fitness hits the big time wouldn’t be a surprise to see something similar when Apple launches their own new VR headset, likely in 2022. The idea of Mixed Reality 2020 was a big year for the fitness industry, especially in the tech So what’s this flurry of activity about? Well, for starters, it seems like Fitness is certainly gaining momentum. space as we outlined in our FitnessTech report. It seemed like all the ba le is on to control the next ubiquitous computing platform anyone wanted to do while they were stuck at home was workout a er the mobile phone. For a while it was thought to be around No sweat using cool, new apps and gadgets. And while the Pelotons, Mirrors eyewear, perhaps in the form of VR. But now it seems like activity Fitness seems to be the latest arena where the ba les between the and Tonals of the world a racted the most a ention, there was tracking has pushed that conversation to the wrist. And while modern tech giants will take place, whether this turns out to be a full another segment within the fitness & activity market that was features such as messaging, notifications and payments are on war, though, is yet to be seen. The different monetization models gaining traction: the smartwatch / trackers market. And this time, the important, knowing exactly how far you’ve walked, how many steps big boys stepped in. at the core of these companies, whether it’s providing free services you’ve completed and now how many hours you’ve slept seem to be layered with ads or charging subscription fees, could even lead to At the end of 2019, Google announced its acquisition of Fitbit, a the questions people want answered the most. Now with the news price wars benefiting the consumer. Maybe they will even ‘put a ring major step in playing catchup to Apple, the dominant player in the that Peloton might launch their own smartwatch, this segment on it’ at some point... In the meantime though, as things heat up, the smartwatch / trackers market since 2015. But they weren’t the only could hot up even more. end users will end up with a lot of options on how they prefer to break ones making big moves, Amazon entered the market in 2020 with a sweat. And it isn’t just about activity tracking. Apple has launched a number their own band, Halo. And earlier this year, rumours started appearing of initiatives around fitness in the last few months. Fitness+ was that Facebook was working on their own smartwatch a er having Fitness deals by Big Tech launched in December 2020 where Apple presented their own failed with their acquisition big for Fitbit in 2019. Deal Year Activity Type Company studio-style workouts, incorporating metrics from Apple Watch. In Timeline of FAANGs in fitness January 2021 they followed up with Time to Walk, a new audio Dec 2020 Tonal Investment Amazon experience encouraging people to walk more. Netflix isn’t missing Date Activity out on the action either, partnering with Headspace to launch a Dec 2020 Zwi Investment Amazon series on guided meditation as mental health is becoming as, if not Dec 2020 Netflix meditation series with Headspace Dec 2020 FitBit Acquisition Google more, important than physical health. Amazon has also doubled Dec 2020 Amazon launches Amazon Halo down with investments in Tonal and Zwi in 2020. Nov 2020 Aaptiv Investment Amazon
Dec 2020 Apple launches Fitness+ All this translates to a few things in the market. For starters, this Nov 2019 Beddit Acquisition Apple could mean more acquisitions given the deep pockets and Nov 2020 Facebook launches Oculus Move Apr 2015 Hello Heart Investment Facebook aggressive track records of these companies. For example, in the Nov 2019 Google acquires Fitbit ba le for activity tracker market share, it wouldn’t be surprising to Oct 2014 Moves Acquisition Facebook see a company like Whoop acquired. Another result would be new Apr 2015 Apple launches Apple Watch products and applications. In December 2020 Facebook launched Oct 2014 Google launches Google Fit Oculus Move, a fitness application for their VR play Oculus. And it NORTH AMERICAN SPORTSTECH REPORT #NASTR21 20 Sports betting unleashed: Raising the stakes
Wanna bet? Odds on favorite Off to the bookies In 2018 when the U.S. supreme court struck down a federal law that With this much money at stake, the five major American sports If the sports be ing age really takes off in the U.S. and local and barred gambling on sports, it basically gave the states the go-ahead leagues are definitely interested. The NFL, NBA, MLB, NHL and MLS federal governments see the dollars rolling in, other countries are to legalize sports be ing. In June 2018, Delaware and New Jersey all have secured various be ing partnerships, many with Dra Kings bound to sit up and take notice. For example, markets like India, joined Nevada, where be ing has been legal since 1949, as states or FanDuel. The two companies grew in daily fantasy sports but are where illegal sports be ing in cricket is reportedly anywhere between where sports bets could be accepted. And the impact was felt almost now full-fledged sportsbooks. And they aren’t alone, channels such $45b to a mammoth $150b, the opportunity to bring control to the immediately. In 2018, the U.S. legal sports be ing market was as NBC, Fox or ESPN and content platforms like Barstool Sports and current Wild West state of affairs will surely be appealing, especially estimated to be annually worth $55b. This figure was reportedly theScore either have partnerships or are soon to launch sports given the revenue windfall that it comes with. But this process won’t $203b in 2020. Yeah, that’s big bucks. books of their own. The PGA Tour, the WTA and ATP, the UFC… the list be easy, given the very obvious risks such legalization can pose to goes on and on. citizens, especially those in already economically backward And this figure will only continue to grow. At the time of this writing, situations. The powers that be will have to think long and hard before 21 states and Washington D.C. have live, legal sports be ing while 21 So while a bunch of partnerships are announced, what does this rolling that dice. more have some form of ongoing legislation. No state has yet mean for the market? For starters, a ton of innovative ways in which rejected the idea of be ing legislation, no surprise given the millions people can get information and place bets. ESPN has announced a of dollars it would add to their coffers in taxes. Whatever question YouTube channel dedicated to be ing while Yahoo has been working marks there may have been around the morality of sports be ing, with the NBA on be ing-centric broadcasts, including they have long been tossed into a bin full of used be ing slips. commentators and screen graphics. And content isn’t just limited to the live broadcast either, FanDuel recently announced a social media focused be ing partnership with WAVE.tv who will launch be ing themed TikTok and Instagram channels to reach younger audiences.
Acquisitions is another key aspect. At the enterprise level we’ve seen mega deals such as Flu er Entertainment, born from the Paddy Power-Betfair-Stars Group acquisition. Dra Kings are reportedly si ing on a pile of cash a er their successful IPO in 2020 and are raising another $1b of which some will be used for acquisitions and technology investments. Also B2B be ing enablement companies are very a ractive now, as the recent acquisition of Banach Technology by PointsBet shows. 75% of bets are expected to be placed in-play and Banach is specialized in calculating those wagers. User acquisition is also critical with sportsbooks willing to pay an average of $370 for new users meaning that free-to-play games that Source: www.americangaming.org/research/state-gaming-map lead users to these sportsbooks are set to cash in as well. Source: www.legalsportsreport.com/sports-be ing-deals NORTH AMERICAN SPORTSTECH REPORT #NASTR21 21 Humanox: Big Data and youth soccer, from Europe to USA
What have been some of your developments over young players and professional teams through technology. We the last 12 months? see that the use of technology and Big Data is present in the highest levels of the professional clubs, but the kids between 6 IC. Over the last 12 months many investors, funds and VC and 17 years old don't get the same benefits. Given the use of high firms from many countries have approached us to be part technology, professional teams are asking us to develop specific of HUMANOX. Our name appears in the latest world rankings, metrics, or customized technological developments, because made by analysts and experts of the industry, as one of the top they find what they need in the HX50. In some cases, that is the sports tech companies to invest in however we are not entrance door to their academies. fund-raising at the moment. 2 clubs of La Liga, C.A. Osasuna and Cadiz C.F. in Spain, are already using the HX50 and our platform What can we expect from Humanox in 2021? with more than 20 thousands kids in their academies and related JM. 2021 is a year of consolidation and growth for Humanox in youth soccer clubs. Europe, and we have just started our activity in the USA where What should we know about you? JM. Internationally, last January we opened a subsidiary in U.K. soccer is also growing exponentially and specifically, youth where we have active commercial staff to respond to interest soccer. We plan to keep our leadership position in the sports tech IC. My partner, Rafael Contreras, and myself co-founded from Premier League teams and other academies. Now, we bring sector and specifically in soccer. We will increase our portfolio of HUMANOX in 2020, as the result of years of research and our technology to the USA by opening a subsidiary, signing our products with new devices integrated in our ecosystem, HUOX experience with IOT connected devices, sensorized structures, first contract with the Miami Youth Soccer Academy and with Space. For that, our R+D area is already working on the next and artificial intelligence. High Technology is our core. Our vision active commercial staff on both coasts. We received the 2020 generation of smart devices applied to sports. is to help people to improve their capabilities through technology Reimagine Football Award by UEFA, for our capacity of innovation IC. Our technology plays a key role in our business model and our in their daily life. Having this in mind, we created the platform and fan engagement. The ecosystem HUOX Space has plans. Digitalization, Big Data, and IOT are central poles for called HUOX Space, where we integrate different devices of components such as health, sport performance and a social Humanox and are the base for our growth this year. sports and health. Our first connected device is the HX50, a smart network, as players can be followed by others (parents, coaches, shin guard for youth soccer players and professional teams, other players), and interact among them. which is connected to the platform in real time. Iván Contreras What are you looking for at the moment? JM. We have an experienced team specialized in Big Data, IOT & Co-founder & Co-CEO Artificial Intelligence that allows us to deliver value to our clients. IC. We are working on different projects in Japan, Italy, Mexico, Our focus is on youth soccer players. We bring technology that USA, UK, besides Spain, of course. From our international Javier Moreno usually is used by the professionals to thousands of boys and girls position, we are open to establish partnerships with common Co-CEO that are passionate about soccer and play weekly. Their parents, interests of reimagining the way that football is played. We look their coaches, scouts, and themselves, have the opportunity to for clubs, academies in the USA that are interested in having monitor their health and performance parameters. HUMANOX as the technological partner to take care of their Cadiz, Spain humanox.com NORTH AMERICAN SPORTSTECH REPORT #NASTR21 22 SportsTrace: Improving Athlete Training with 3D Video Analysis
So, if you are interested in turning 2D cell phone video into 3D As we continue to dive into distribution channels for the biomechanical motion capture data, we have you covered. If NOT, consumer facing app, we will consider investment opportunities then just take a look at our video management, in 2021 Q2. recommendations for training, or comparisons (you vs. you and you vs. pros). The value? Reduce the time to improve, reduce the What can we expect from SportsTrace in 2021? time spent pouring over video. Improve your play now, get Now that we’ve been able to launch our mobile app, we are automatic hints into what you should be keying on in your form moving beyond teams and training facilities to consumer and technique. athletes. SportsTrace has a 2021 roadmap to expand current What have been some of your developments over contracts and customers in baseball, golf, tennis, and so ball to other sports worldwide. We’re also developing partnerships with the last 12 months? video providers to both structure data for and derive more value My co-founder and I started SportsTrace in early 2020 and from video. Beyond sports? We’ve already been working with launched the full mobile application last month. In between? healthcare providers – both physicians and clinicians – to adapt We’ve cultivated a pipeline of customers while working with close our solution for rehabilitation and physical therapy applications. partners in baseball, so ball, golf, tennis, soccer, and track & field from amateur to professional levels. Max Montrey In addition to SportsTrace video analysis, we’ve readily integrated Co-founder and CEO other data sources (Trackman, Rapsodo, Blast Motion, to name a few) alongside our video analysis to create a complete picture of What should we know about you? the entire sports scenario. Cape Girardeau, MO and Sea le, WA sportstrace.com SportsTrace is #MoneyBallForMotion and we help athletes and coaches train smarter using nothing but cell phone video. The What are you looking for at the moment? idea is simple: take a video from a game or practice, upload it Everyone at SportsTrace is always looking to expand our network! using the SportsTrace mobile app, and an athlete or coach can We’ve been fortunate to connect with teams, leagues, and see what’s working, what’s not, and how the athlete’s mechanics facilities around the world. We’ve also been able to connect with have changed over time. The insights we provide include links to partners who have sports video but would like to realize more drills, exercises, and products that help an athlete get be er value from that video. So, if there is a customer or partner faster. Our mission is to empower every coach and every athlete – connection that would benefit the work and mission of anywhere and on any budget – to achieve more. SportsTrace, we would be grateful for the opportunity to connect. NORTH AMERICAN SPORTSTECH REPORT #NASTR21 23 Obsesh: A real-time sports platform and marketplace to level up your obsessions
Obsesh provides top athletes the plug & play resources, tools, What are you looking for at the moment? and technology solutions that turn them into instant entrepreneurs. Obsesh is on a mission to empower all niche athletes and actively seeking the right strategic partners across teams, leagues, academy’s, and NGB’s interested in bringing an innovative What have been some of your developments over sportstech solution to athletes that empowers brand building, the last 12 months? monetization, and new forms of unique content engagement. To leverage Obsesh to power and strengthen your fan experiences The ongoing health pandemic has accelerated consumer and with a scalable solution that supports athlete growth, reach out athlete demand for Obsesh. We were a top 4 company in Stadia to Tracy Benson. Ventures premier sports accelerator helping our business, product, and go-to market strategy drive successful growth. With What can we expect from Obsesh in 2021? a shi to online, virtual and the changing landscape across all 2021 is accelerating the importance of Obsesh’s solution for fan What should we know about you? sports, Obsesh’s organic athlete acquisition and onboarding is engagement and experiences as most spectators are barred from experiencing 38% compounded quarterly growth now combining live events, including the Olympics. For Sports Leagues, Teams, Obsesh is a real-time sports platform and online marketplace more than 145 athletes across action, board, independent, team and NGB’s, Obsesh can pick up the slack to bridge the gap connecting fans to top athletes. The company provides a sports and Olympic sports. More consumers than ever are seeking between fandom and talent through live and on-demand content technology platform for top athletes to sell personalized video authentic experiences and our built-in user base is actively experiences for sport consumers seeking to absorb, connect, and content and tailored experiences to customers worldwide. We onboarding 13.5m young consumers who are eager to connect transact with upcoming talent in the sports space. Our focus is help fans get the edge, from the pros, through content with their idols in all-new ways. The company has also secured continuing to turn on monetization for every qualified athlete and customized to them. content and brand distribution partnerships creating weekly continue releasing new products that empower 1-to-1 personalized virtual experiences, 1-to-many group livemedia Our value proposition: The world of sports exists where fans and access to more than 300m viewers through Sinclair Broadcast experiences, the ability for athletes to sell custom merchandise, athletes connect. Group and Jukin Media OTT, streaming, and in-home programming to simultaneously drive fans and athletes to the and new tools that continue empowering 360-degree Obsesh is the game changing sportstech platform that elevates marketplace. All proof in early marketplace pilots average 7.3% engagement. every obsession. We empower sports consumers to access, transaction rate and the top reasons for consumer purchase to connect, and transact with sports talent through live and virtual gain new skills, tops, techniques, and inspiration from the quality, Tracy Benson personalized content experiences to level up their skills, authentic voices they trust. By shaping our solution with athletes, Cofounder & CEO knowledge, training, and inspiration real-time. And we make it we’ve identified a go-to market strategy that will lay the easy for 99% of the world’s top niche athletes to make money by foundation for early monetization growth as every athlete sets selling tailored content and products to consumers worldwide. their own prices and makes 75% of every product sold. Oakland, CA obsesh.com NORTH AMERICAN SPORTSTECH REPORT #NASTR21 24
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ECOSYSTEM OVERVIEW
Investors 27 Accelerator & Incubator Programs 32 Innovation Initiatives 34 3 NORTH AMERICAN SPORTSTECH REPORT #NASTR21 26 North American SportsTech Ecosystem 2021
ADvantage Sports Jazz Venture NEXT VENTŪRES SeventySix Capital Beyond The Game Tech Fund Partners Network
Nassau San Francisco Austin Conshohocken Atlanta
Bruin Sports KB Partners Rabil Ventures Stadia Ventures Ludis Capital Drive! by Draftkings
White Plains Chicago San Francisco St. Louis Los Angeles Boston
Causeway Media Konvoy Ventures RSE Ventures TitletownTech Oregon Sports Comcast NBCUniversal leAD Lake Nona Sports Global Sports Sports Innovation Partners Angels SportsTech & Health Tech Academy Venture Studio (RGA) Texas
Cambridge Denver New York Green Bay Portland Atlanta Lake Nona Los Angeles Austin
Courtside Ventures Mark Cuban Rx3 Growth WhiteRock Capital Phoenix Sports Future of Sport Lab Stadia Ventures HTX Sports Tech VC Sports Companies Partners Partners
New York Dallas Newport New York Chicago Toronto St. Louis Houston New York
Elysian Park Mindspring Capital Sapphire Sport Will Ventures The Players’ Impact Global Sport Venture Techstars Sports Sixers Innovation Women in Ventures Development Lab Sports Tech
Los Angeles Newport Palo Alto Boston Boston Phoenix Indianapolis Philadelphia San Francisco
Investors Programs Initiatives
Funds Networks Accelerator & Incubator Programs Innovation Initiatives NORTH AMERICAN SPORTSTECH REPORT #NASTR21 27 Investors in North American SportsTech 2021
ADvantage Sports Tech Fund Elysian Park Ventures Mark Cuban Companies Nassau Los Angeles, California Dallas, Texas Invests in early-stage tech companies aimed at Private investment firm that partners with entrepreneurs at Investment arm of billionaire entrepreneur Mark Cuban shaping the future of sports the intersection of sports, technology & entertainment
Beyond The Game Network Jazz Venture Partners Mindspring Capital Atlanta, Georgia San Francisco, California Newport Beach, California Community of professional athletes and business Invests in companies that extend the boundaries of Investors and consultants focused on B2B sport tech execs that invest in and work with startups human performance companies with proven concept and readiness to scale
Bruin Sports KB Partners NEXT VENTŪRES White Plains, New York Chicago, Illiniois Austin, Texas Sports, entertainment, & media company specialized Investment firm focused on early stage VC investments VC firm designed to maximize growth opportunities in working with capital partners & management teams at the intersection of sports and technology in sports, fitness, nutrition and wellness markets
Causeway Media Partners Konvoy Ventures Oregon Sports Angels Cambridge, Massachuse s Denver, Colorado Portland, Oregon Invests in growth stage companies in sports, Thesis driven venture capital firm focused on the Angel Network investing in early stage sports fitness, and related industries video gaming industry products, services and experience companies
Courtside Ventures Ludis Capital Phoenix Sports Partners New York, New York Los Angeles, California Chicago, Illinois Venture fund investing in early stage sports, fitness Investors in early stage companies at the Investment & operating company in disruptive technologies, & gaming companies intersection of sports, tech and entertainment services & platforms targeting the sports market NORTH AMERICAN SPORTSTECH REPORT #NASTR21 28 Investors in North American SportsTech 2021
What are the main trends in SportsTech? Rabil Ventures Stadia Ventures San Francisco, California St. Louis, Missouri Provides capital, advisory and operating expertise Global sports innovation hub for entrepreneurs, in sports, financial services, health and wellness industry partners and investors Alexander Bente Principal RSE Ventures The Players’ Impact New York, New York Boston, Massachuse s We’ve all witnessed the meteoric rise of connected fitness in Private investment firm that spans sports & entertainment, Cross-sport athlete network with industry experts, early 2020. How will the fitness landscape look like in a post-COVID media & marketing, consumer and technology stage business resources & investment opportunities world? What effects will that have on the next wave of connected fitness companies? A er the pandemic, the focus Rx3 Growth Partners TitletownTech should remain on the athlete. We believe that companies that Newport Beach, California Green Bay, Wisconsin put consumers in the center of their universe and strive to offer Consumer-focused investment fund with an emphasis Builds & funds early-stage high-growth businesses, holistic, personalized experiences no ma er where they work on lifestyle, food & beverages and sport based on a Green Bay Packers & Microso partnership out – at the gym, at home, or in the park – will win this race.
Sapphire Sport WhiteRock Capital Palo Alto, California New York, New York Fund investing in early-stage technology Specialised on M&A, PE & VC deals with a focus on companies in sports, media and entertainment sports, entertainment and luxury sectors globally
SeventySix Capital Will Ventures Conshohocken, Pennsylvania Boston, Massachuse s Invests in entrepreneurs who are launching game-changing Venture capital fund focused exclusively on startups in sports tech, esports, and sports be ing leveraging the power of sport to shape the future NORTH AMERICAN SPORTSTECH REPORT #NASTR21 29 Investors in North American SportsTech 2021
What are the main trends in SportsTech?
Brian Zwerner Vasu Kulkarni John Spinale Founder Managing Partner Managing Director
We believe that post-COVID consumers adopt a hybrid This is the year of collectibles. A combination of boredom during What's most interesting to me right now are the companies that approach to working out, balancing returning to gyms with the pandemic, a fear of inflation, a sense of nostalgia and be er are starting to stitch together all the disparate pieces of the training apps and at-home equipment. We are investors in buying and selling tools on the internet are going to set the ecosystem, all of which are interesting individually, but currently Future, which pairs customers with an AI-assisted coach to sports memorabilia and trading card markets on fire. In addition, create a highly disjointed experience to end user - then starting achieve their best results. We also think that tracking devices it's not just physical collectibles, but digital ones as well that will to customize and personalize it based on that individual will continue to grow fast as their capabilities expand. We are finally gain mass consumer appeal. The combination of NFTs athlete's needs in a closed loop fashion. investors in Eight Sleep, a sleep fitness company using high and rights from IP owners will result in the wide spread tech sensors to monitor the body throughout the night for peak acceptance of digital collecting. performance.
Jasmine Robinson Cole Van Nice Lance Dietz Principal Co-Founder and Managing Principal
1) Consumers are spending more on personal care than ever We are spending a lot of time on (1) artificial intelligence related to Democratization and personalization of human performance, before. That should be a continued tailwind for fitness & sports video and data (e.g. Synergy Sports, WSC), (2) technologies holistically across mental health, gut health, physical fitness, wellness companies with effective B2C strategies. 2) Innovation that improve the sports be ing experience (e.g. Swish Analytics, recovery, nutrition, etc...from elite athletes to everyday in sports content experiences and formats is on the rise. I Tappp); (3) platforms and communities for amateur esports (e.g. consumers. anticipate real gains in the quality of the sports content PlayVS), and (4) innovation in youth sports (e.g. League Apps, E|L1, experience looking forward. 3) We continue to see sports, and Snap Sports). We also think sports science is in the early gaming, fashion, and music come together in interesting ways. innings of some exciting advancements (e.g. Ki Bio), with the I'm eager to see how that evolves in new consumer applications. potential to impact health and wellness broadly. NORTH AMERICAN SPORTSTECH REPORT #NASTR21 30 Investors in North American SportsTech 2021
What are the main trends in SportsTech?
Josh Chapman Johannes Lerchen Brian Kopp Managing Partner Principal Partner & Group CEO
The rise of peer-to-peer be ing is an accelerating space that we One interesting trend we're observing is collectible sports Coming out of COVID, we see a few key areas that will drive the are watching closely. This is especially scalable in the video trading cards. The space shows strong momentum and a lot of sports tech market: (1) Remote Athlete Monitoring & Training - gaming market as many players want to play and bet on their underlying infrastructure is yet to be built to explore the full using technology to allow athletes to train effectively and head-to-head matches in gamings like FIFA, Madden or NBA2K. potential. coaches to engage, regardless of location (2) Fan Engagement Through Data - in person or at home, using data to engage fans and deliver new experiences (3) Esports for the Masses - new platforms will enable groups at all levels to participate in esports events and competitions.
Matilda Sung Kate Delhagen Nate Raabe General Partner Founder & President Managing Partner
Blockchain/tokenization/crypto fuels new gaming/fan Oregon Sports Angels looks at very early stage sports product The pandemic has been a huge driver of innovation in the engagement models that drive fandom, capture new markets, and sports tech companies that create and deliver "anything an connected fitness and wellness category. Specifically, and access liquid capital. Utility plays (talent management, athlete, team, or fan can use or wear." In that vein, we think technologies and platforms that allow consumers to work-out payments, etc.) within esports/sports be ing flourishes. 5G several areas are compelling: Connected fitness; quantified and maintain a healthy lifestyle in the comfort of their own brings slicker second screen activations folding athlete / performance / recovery optimization; vertical apps and home have seen tailwinds from the pandemic. AR/VR/commerce/social/gaming all in one. Data plays + AI marketplaces (sport/activity-specific); sports product unlocks more sponsor value. Health/safety KPIs tops smart innovation around materials, especially those which have a stadium mandates. Serving the underserved (women, strong sustainability and/or performance benefit. minorities, youth) through content and communities takes off. NORTH AMERICAN SPORTSTECH REPORT #NASTR21 31 Investors in North American SportsTech 2021
What are the main trends in SportsTech?
James Santore Cordero Barkley Director of Marketing Partner
Sports be ing and esports have emerged as dominant forces With revenue being impacted so heavily due to Covid-19, the within the sports tech space over the past year, and we expect start-ups focused on changing fan and brand behavior while that trend to continue to grow. As teams and leagues have creating and enhancing revenue channels for sports franchises searched for ways to be er engage fans during the pandemic, and business entities seem to be thriving through this tough sports be ing has become a fan-favorite and has amplified the period. at-home experience. Esports has provided a way for people to interact, play, and socialize with their friends, and also continue to play competitively virtually.
Joe Pimmel Thomas H. Rudy Managing Director CEO
We are seeing several areas in SportsTech that are very We see a crossover of SportsTech into health & wellness interesting. First, the landscape around sports applications, such as Connected Athlete solutions (like Whoop) be ing/iGaming/fantasy sports continues to develop across the or hardware/so ware products tackling physiotherapy and country, so that is an area where we've begun to see an uptick in active recovery. These trends are expected to find their way into deal flow. Second, we also see continued interest in people's homes to add to the growing home fitness market wellness/recovery of both sports and esports athletes, including globally. This will eventually lead to widely accessible and more both mental and physical wellness. Finally, we're also observing comprehensive offerings improving overall human how sports properties are exploring technologies to support performance. engaging remote fans. NORTH AMERICAN SPORTSTECH REPORT #NASTR21 32 Accelerator & Incubator Programs in North American SportsTech 2021
What is your advice to startups in 2021? Comcast NBCUniversal SportsTech Atlanta, Georgia Designed to bring sports tech ideas to life with partners, brands, and professional sports organizations Ryan Bell Jeff Kunowski Associate Director, Marketing Director Innovation Programs Future of Sport Lab Toronto, Ontario Concentrate on what makes you special. It's easy to get bogged The sports industry was hit very hard in 2020. Many of these Lab & incubator for sport innovation and research, supported down with the million jobs of an entrepreneur, so find that path challenges are still present here in 2021, but the industry has and co-managed by MLSE & Ryerson University that brings you to finished problems. Distractions destroy found ways to adapt to the ever-changing norm. My advice for dreams (and yeah, totally just came up with that). Good luck! startups is to use these challenges as learning experiences and Global Sport Venture Development create efficiencies for your businesses based on the lessons Phoenix, Arizona that we've been taught. Efficiency is key when launching a new Programs focused on areas of practice (funding sport venture and 2020 has taught us the importance of evaluating innovation) & knowledge (education on sport innovation) expenditures and operating lean.
leAD Lake Nona Sports & Health Tech Academy Lake Nona, Florida Designed to support and grow early-stage sports & health tech startups at a master-planned innovation hub Dr. Cheri Bradish Professor, Sport Business / Founder and Managing Director, FSL Stadia Ventures St. Louis, Missouri 'Let's help you understand how your solution can help the Global sports innovation hub for entrepreneurs, industry' is an expression we use o en, which really speaks to industry partners and investors the core of how we have approached the Canadian Sport Tech ecosystem at Ryerson - how can our network help you think Techstars Sports bigger and more clearly about your tech solution? Indianapolis, Indiana Designed for tech companies focused on the future of sport, from new technologies to new business models NORTH AMERICAN SPORTSTECH REPORT #NASTR21 33 Accelerator & Incubator Programs in North American SportsTech 2021
What is your advice to startups in 2021?
Christoph Sonnen Jordan Fliegel Co-Founder & CEO Managing Director
Invest time in finding the right co-founders and building a solid As my old basketball coach used to say... "Stay in your stance!" team. In the early stage developments of a startup, the team is Meaning, stay grounded, don't get too high or too low and be what ma ers the most. They will be side-by-side with you to turn ready for what comes. a vision into a market leader product. Find partners and co-founders who share your passion, compliment your skills and challenge you to grow as an entrepreneur. I always tend to say that innovation is a team sport – find all-star teammates and winning coaches.
Tim Hayden Co-Founder & Managing Director
Success isn’t the end result. It’s the journey. Especially as we travel this once-in-a-lifetime pandemic. Mike Tyson said, “Everybody has a plan until you get punched in the mouth” and the pandemic punched entrepreneurs in the mouth. So, what’s next? Take a knee…or evolve and persevere? To survive, ask a lot of hard questions about yourself, your product, market fit, competition, business model and team. 2021 is going to be another gut-check year where weakness can’t hide. Enjoy the journey! NORTH AMERICAN SPORTSTECH REPORT #NASTR21 34 Innovation Initiatives in North American SportsTech 2021
What are your key takeaways from 2020? Drive! by Dra kings Sports Innovation Texas Boston, Massachuse s Austin, Texas Multi-stage venture capital firm investing in SportsTech Community & connection across the intersection of tech, and Entertainment data & digital with sports, esports, fitness & wellness Kyle Bunch VP, Managing Director Global Sports Venture Studio (RGA) VC Sports Los Angeles, California New York, New York No one can predict the future, but you can prepare for it. The Leading sports organizations collaborate & engage with Global community of investors, entrepreneurs, and pandemic may have been a black swan event, but the the sports innovation ecosystem for fan/athlete executives focused on sports business, media and tech challenges it brought forward were emerging well before COVID’s arrival. No one can win without aligned incentives. HTX Sports Tech Women in Sports Tech Leagues, teams, athletes, corporate partners, and startups have Houston, Texas San Francisco, California to work together to adapt and survive. It’s more than a game. Working with companies, academic institutions & community Driving growth opportunities for women at all stages of The notion of “sticking to sports” was retired once and for all as partners to drive innovation & the future of sports tech their careers in the sports tech & innovation landscape sports leaders stepped up to drive societal change and racial equality. Sixers Innovation Lab Philadelphia, Pennsylvania Supports rapidly growing, early-stage companies in the consumer product space NORTH AMERICAN SPORTSTECH REPORT #NASTR21 35 Innovation Initiatives in North American SportsTech 2021
What are your key takeaways from 2020?
Nate Thompson Jeff Volk Managing Partner Co-Founder
2020 simultaneously exposed and accelerated opportunities for I’ve learned how to truly engage remotely. As it relates to sports, startups to reimagine and create solutions for both some media and technology, we work with the same tools at our well-known and previously unidentified problems. These disposal: a computer, devices, our relationships and our ability challenges reinforced our fundamental belief that a to drive value through them. While the tools are the same, our commitment to embracing innovation, equity, and collaboration surroundings are different. This has led to the implementation of will consistently deliver value - within the esports & sports new, smart virtual working conditions that enable us to industry and across society. Leveraging the power of sports reimagine what being “present” really means. We are more we're able to drive major levels of change and progress within plugged-in to innovation and more super-connected as a result. this community.
Thomas Alomes Marilou McFarlane Director & Founder Founder/Chair Emeritus
Although 2020 was a year like no other, we saw an acceleration Businesses and startups are focused more than ever on of existing trends rather than a creation of new ones. Rapid diversity hiring and inclusive cultures, especially in sports tech growth in connected fitness and recovery tech; Stadium which does not yet mirror the diversity of the sports world. frictionless fan experience (e.g. cashless, digital ticketing, Coupling WiST's specific programs and initiatives with the biometric security); Immersive digital experiences across intention to change their ratio, leaders now have the one-stop platforms in lieu of physical interactions (e.g. live sports solution to diversify their pipelines of talent. 2020 was a pivotal co-viewing; digital fan zones; crossover gaming and esports year for sports tech and for WiST, especially as women and events like the Fortnite x Travis Sco concert or the F1 Virtual minority groups were disproportionately impacted by COVID. Grand Prix). NORTH AMERICAN SPORTSTECH REPORT #NASTR21 36 North American SportsTech Startup Selection 2021
We’ve asked each of the 28 innovators in this report to name one North American SportsTech startup that has impressed them recently. The result: A selection of 27 startups (one was mentioned twice) that represent North America’s SportsTech innovation capabilities.
Break the love Bridge Buzzer Dapper Labs Ergatta Fade2Karma FansUnite FloSports GreenPark Sports GRIND Inc. Tennis facility booking Social connectivity app Sports news platform Blockchain-based experiences Gaming inspired connected rower Media network in the gaming Sports betting technology platform Sports video streaming service Fantasy sports platform Portable shooting machine platform industry
Hydrow Maestro Interactive MOJO Sport Monarc Obsesh Organic Robotics Outside PlayVS Pumpjack Dataworks Safety Skin Live on-river rowing Interactive video platform for A one-stop, coach-in-a-box AI based robotic football Digital fan engagement On-field biomechanical sensor Active lifestyle content League for high school & Digital fan revenue platform Patented reflective skin cream experience at-home creators trainer platform and experiences college esports
Slate Tennibot Tersa The GIST US Integrity Vessel Health Vision Pursue Content creation platform Autonomous tennis ball Mobility and alignment Sports content created by Sports betting network At home wellness tracker Performance mindset collector training system women program NORTH AMERICAN SPORTSTECH REPORT #NASTR21 37 More reports, more data, more insights!
“More cash than Cuban” “Fresher than a Beckham haircut” “Ok to be read in sweatpants!” sportstechx.com/gstvcr sportstechx.com/footballtech sportstechx.com/fitnesstech THAT'S A WRAP NORTH AMERICAN SPORTSTECH REPORT #NASTR21 39 Methodology
The data from this report was obtained from reviewing over Only funding deals have been considered, mergers and 2,100 active startups and over 2,000 funding deals in North acquisitions between entities have been excluded. For American SportsTech. Here are some key things to know example the Paddy Power and Sky Bet merger in 2019 is only about how this analysis was approached. While we always mentioned in the trends and not included in the investment want to be as inclusive as possible, we have applied certain totals. criteria to ensure that all data is representative of current trends. As far as possible we have obtained public domain sources for all the deals that we report on. This includes funding All companies founded before the year 2000 have been announcements made on a variety of media channels. excluded. eSports game publishers, teams and leagues have been Only currently active companies have been considered for excluded as they don’t find space in our framework. the startups related data. In general eCommerce based solutions have been excluded, Only deals announced during the period of Jan 1, 2016 - Dec as those form part of the Web 1.0. So while there has been 31, 2020 were considered, (excluding the Top 10 most funded innovation in products, the format itself isn’t new. startups where the all-time total was presented). One last thing: As always, our team spends countless hours Deals completed in that period for companies that are not pouring over interviews and data around startups and currently active have also been included. funding rounds, but the nature of the beast that we try to tackle is that some will get missed, especially from the last As in every year we expect some amount of reporting lag as year. However we are confident that the information we not all deals from last year would have been announced. As present paints a pre y accurate picture of what is a result we have added 15% to the total funding value happening overall in the industry and so allows us to draw reported for 2020. strong inferences about where it is headed.
All deals are reported in USD. For deals not in USD, the average conversion rate for the deal currency to USD in the deal year was utilised. NORTH AMERICAN SPORTSTECH REPORT #NASTR21 40
Thank you!
We would like to thank our fantastic team for the work that’s gone into this report. Without their initiative, innovation and hard work this wouldn’t have been possible. A team greater than the sum of its parts, happy to have you guys on board!
Briana Ekanem Kevin Kariappa Rishabh Jain Communications Manager Research Analyst Research Analyst
Imprint Authors: Benjamin Penkert and Rohn Malhotra Company: The North American SportsTech Report is a Content Note product of SportsTechX GmbH The content in this report is for general information purposes Graphic Design Address: Rheinsberger Str. 76/77, 10115 Berlin, Germany only and can change at any time. SportsTechX can not The report was designed by Ryan Hays. Thanks a lot for your Contact: www.sportstechx.com / [email protected] guarantee the ultimate accuracy or completeness of the data. continuous support! Check him out at www.boyintree.com