Who would like to attract the attention of Sport Tech investors?
- sivanlachman
- Feb 13, 2022
- 3 min read
From human performance to media, betting, and NFTs, technology is transforming every aspect of sports. Taking notice, are a growing number of startups and investors, including venture capitalists, athletes, and the teams/leagues themselves, who are pursuing the billion-dollar opportunity in sports technology.
Until recently, sports tech was thought to be a niche category, historically centered on products sold to teams and elite athletes. But now, widespread innovation is ushering in a new era of sport, one defined by technology.
Like nearly every industry, from healthcare to education, the sporting world is in the midst of a digital revolution. As a result, the traditional sports universe is experimenting with new business models, distribution channels, and marketing strategies to reach and engage fans. For their part, amateur and professional athletes are leveraging new technologies to enhance their performance, personal brand, and bank accounts.
Meanwhile, flush with capital, ambitious founders are reimagining sports as we know them, pushing further into augmented/virtual reality, blockchain technology, and gaming.
Valued at $11bn in 2019 and growing at 23.1% annually, the sport tech market is expected to reach $50bn in 2030.
Looking at the market trends, the following is clear:
The most impactful technologies are fan engagement, athlete performance, and stadium experience.
The most compelling investment areas are media & content platforms, data, analytics and biometrics.
The most interesting technology trends are in data analytics, wearables and performance enhancement, and more.
In terms of focus areas for investors are:
Memorabilia, including NFTs and blockchain technology with heavy legislation coming this way.
Trickle-down tech – technology crossing over from professional athletic performance into consumer health and fitness. Investors are looking to back human performance/optimization startups, hoping to capitalize on innovation initially intended for elite athletes trickling down to everyday amatuers. As consumers prioritize health and overall well-being, investors aim to help elite and everyday athletes perform better and live healthier lives. Examples of these are Zwift and WHOOP that have raised record levels of funding.
Sport tech is paving the way for personalization and customized care in every facet of our lives. From game highlights integration across fitness and wearables to nutrition.
Emission and waste reduction. With tons of waste generated at sports events, stadiums being heavy energy and water consumers, this area is also attracting attention from climate-tech investors.
Sports is becoming more deeply part of our social fabric and touching nearly everything.
Stakeholder interest
McKinsey survey shows that 70% of consumers are willing to spend more money on sustainable products, thus retailers have come up with corresponding action plans. Professional teams are exhibiting their sustainability and have detailed plans to lower their carbon footprint. Investors are showing growing interest in making a positive-impact investment.
Measuring your impact via an integrated business plan goes to prove the company's sustainability commitment and gain attention from stakeholders.
Looking Ahead
While it’s difficult to pinpoint a singular definition of sports tech or predict where the sector is heading, there’s no denying that sports is a powerful platform for innovation. As more capital flows to the space, new technologies will push the limits of performance while strengthening the sense of community among fans.
There is an opportunity here for ventures from different fields to enter the world with a lot of money just looking for investment opportunities. Medical technologies, digitization, emission and waste reduction due to sporting events, food technology. Everyone has a place in this world as well.
#Sivan Lachman
#Impact Measurement
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