Women's sports are attracting substantial investments from private equity (PE) and venture capital (VC) investors, rejuvenating the startup landscape. Data reveals that new and emerging sports leagues are the primary recipients of VC funding in the sports industry.
Resurgence in VC Funding for Sports Startups
According to PitchBook data, VC funding for US sports startups experienced a rebound in 2024. Approximately 119 deals amounting to $880 million were estimated, marking a 54% increase from the previous year. However, the funding levels were lower compared to 2021 and 2022 when the sector received around $1.4 billion annually.
PE and VC Investments in Sports
While PE investments in sports reached a new peak of about $9.89 billion in 2024, VC funding in the startup space faced uncertainties due to economic fluctuations. Investors sought more secure opportunities amidst high interest rates and limited exit options for startups.
Trends in Sports Startup Funding
VC investments primarily targeted early-stage companies with experienced founders and proven market traction. Notable examples include League One Volleyball and TOCA Football, which secured $100 million in funding rounds.
New Opportunities in Women's Sports and Emerging Leagues
New sports leagues and women's sports captured significant VC funding in 2024. National Women's Soccer League teams and the three-on-three basketball league Unrivaled were among the top recipients. Investors see potential in engaging existing fans through innovative approaches and shorter events.
Challenges Faced by Sports Startups
While some sectors like women's sports flourish, others such as media and sports betting encounter challenges. Sports-betting deals are more intricate and time-consuming, requiring investors to be discerning. Founders now opt to bootstrap longer before seeking external funding, making it tougher for new ideas to secure initial investments.
Top US Sports Startups Securing VC Funding
Several US sports startups secured significant VC funding in 2024, including Angel City FC, League One Volleyball, TOCA Football, Grand Slam Track, Major League Cricket, On3, NJ/NY Gotham FC, Sofive Soccer Centers, Unrivaled Basketball, and Gameplay Galaxy.
While some companies confirmed their funding amounts, others declined to comment or did not respond by press time. The influx of investments in new leagues, women's sports, and sports technology signifies a promising trend in the sports startup ecosystem.
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By: mmeaney@businessinsider.com (Mackenzie Meaney,Ashley Rodriguez)
Title: New Leagues, Women’s Sports, and Tech: A Booming Trend in Startup Funding
Sourced From: www.businessinsider.com/top-sports-startups-raised-millions-vc-last-year-unrivaled-lovb-2025-2
Published Date: Thu, 27 Feb 2025 13:46:55 +0000
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