Frequently Asked Questions

General

Do you need an AFM license?

No, we do not need a license because we make use of an exemption from the AFM. Due to the ticket size of more than € 100,000, we are targeting more experienced investors who have a better understanding of investing. In addition, for the current fund, we have chosen a more private approach. This also keeps the overhead costs low.

Can I also participate with amounts lower than EUR 100,000?

No, not at this moment. However, possibilities for lower amounts are continuously being explored. 

How do you decide which companies to invest in?

We do this by first conducting a quick scan of a number of potential candidates as management. If the quick scan shows that the interest is substantial enough, the Innovation Committee and subsequently the Investment Committee will give an assessment that is decisive for the investment decision. Criteria and sectors The criteria for investments, which Dutch Sport Tech Fund uses in its decision-making regarding potential participations, must be clear and consistent. The central questions when choosing an investment include:

Entrepreneur
Is the entrepreneur fully committed to their company? Does the entrepreneur have ‘skin in the game’?

Scalability
Does the company offer a scalable product? Is it a cloud-based product available in multiple languages? Does it generate multiple revenue streams?

Innovation
Does the company offer an innovative product (or service)?

IP
Does the company fully own the intellectual property rights for its product(s) and/or service(s)?

Revenue
Is the company already generating revenue? Or is there a clear outlook for revenue?

Market
Does the company have a significant market share?

Profit
Is an annual ROI of 15% possible?

Exit strategy
Does the company have an exit strategy (within now and 5 years)?

Sectors
Is the company active in one of the following sectors: Player performance, fan engagement, data analytics, OTT, Esports, Fantasy Sports & Games?

How do I know when dividends are paid out?

Dividend will be distributed when DSTF receives a dividend payment from one of its participations or when a participation is sold. Dividend will only be distributed once there are liquidity surpluses and the portfolio is already fully invested. Therefore, this is expected to occur from year 3-4 onwards. As soon as this happens, we will inform our certificate holders.

How does the settlement take place after 5 or 7 years?

In principle, the aim is to sell a participation 5 years after purchase. If there is reason to do so, this period can be extended. The invested amount + return + dividends will then be transferred back to the certificate holders.

What is the difference between A and B certificates?

The founders of Dutch Sport Tech Fund have established an investment company for the sports sector to generate attractive returns for certificate holders.

The company offers A share certificates at a value of at least € 100,000. The B share certificates are founders' certificates.

All A share certificates represent the capital with equal values and rights. The B certificates entitle holders to 30% of the profits. The profit on the B share certificates is only distributed if the profit attributable to the A share certificates amounts to at least 6% of the investment.

What happens in the event of the death of a certificate holder?

The share certificates are part of the certificate holder's assets and, upon his/her death, will form part of his/her inheritance. The heirs are also entitled to the dividend payment. In the event of death, the certificates can be transferred, provided a ‘buyer’ is found for the certificates. The beneficiary can also be changed. The heirs will need to contact DSTF with a certificate of inheritance.

Who drafted the legal documents?

The legal documents have been prepared by Finway Advocaten, a firm specialized in providing legal advice to fintech companies.

Where can I register and sign up?

You can register by filling out a registration form or via the investor portal, which can be found on our website.

When will the Initial Closing take place?

The exact date of the Initial Closing will be finalised as part of the fund's organisational setup and final Fund Documents.

What types of companies does DSTF2 invest in?

Primarily Series A and later-stage scale-ups that have already demonstrated product-market fit, a scalable business model, a strong management team and clear revenue growth.

Which specific sectors (verticals) does DSTF2 invest in?

DSTF2 focuses on five core areas within sports technology:

  • Data & Predictive Analytics: Data-driven insights for performance and strategy.

  • Human Performance & Athlete Wellness: Health, recovery and performance optimisation.

  • OTT / Digital Media & Immersive Technologies: New ways of streaming and experiencing sports (e.g. VR/AR).

  • Esports & Fantasy Sports: Digital competitions and interactive platforms.

  • Fan Engagement & Digital Communities: Direct interaction and value creation between clubs, athletes and fans.

Does DSTF2 also invest in hardware?

The fund primarily focuses on scalable software, digital platforms, data and technology-driven business models. Pure hardware investments are generally not preferred unless they are supported by a strong, recurring software or data-driven revenue model.

How many companies does DSTF2 aim to include in its portfolio?

The fund aims to build a balanced portfolio of at least 10 companies to ensure sufficient diversification of investment risk.

What is the maximum investment in a single company?

To limit concentration risk, no more than 20% of the total fund capital (Capital Commitments) may be invested in a single company.

What is the average initial investment size?

No fixed amount is specified in the fund terms. The exact size of the initial investment ticket depends on the final fund size and the specific composition of the portfolio.

What proportion of the fund is reserved for follow-on investments?

The fund provides for follow-on investments in well-performing portfolio companies. There is no fixed reserve percentage formally established; allocations are managed flexibly based on opportunities within the portfolio.

Does DSTF2 invest globally?

Yes. DSTF2 invests internationally, particularly in regions and markets with high adoption rates of sports technology.

Can DSTF2 invest outside the sporttech sector?

No. All investments must comply with the fund's investment policy and fall within the definition of sports technology as outlined in the fund documentation.

How does DSTF2 source attractive investment opportunities?

Through an active, multi-channel sourcing strategy combining its international sports network, proprietary data tools, specialised deal databases, thematic market analyses, relationships with VC funds, incubators and accelerators, and direct connections with founders.

What value does the network add to deal sourcing?

Thanks to its strong presence within the sports and technology industries, DSTF2 is often among the first to identify promising companies. This gives the fund access to investment opportunities (proprietary deal flow) before funding rounds are widely announced to the market.

Does DSTF2 have exclusive or proprietary deal flow?

Yes. Due to its specialised focus on sporttech, founders often approach DSTF2 directly for its industry expertise and network, rather than relying solely on traditional Venture Capital channels.

Have any investments already been made, or are there companies in the pipeline?

The current status of investments and the active deal pipeline will be explained during the fundraising phase. The Investment Memorandum primarily outlines the investment strategy and the criteria that new portfolio companies must meet. For the latest updates, please visit our DSTF2 portfolio page.

Risks

What risks are there if I join?

We describe our greatest risk in our investment memorandum. We recommend that everyone carefully read this IM in advance before making the decision to participate. One of the risks is that DSTF may not be able to achieve its objectives on time due to a lack of funding. In addition, there is of course always a risk that a participation may not succeed. The management of DSTF will do everything possible to prevent this.

Other questions

What is the ratio between equity and debt within DSTF?

DSTF does not work with external capital. All directors of DSTF have contributed capital. This can be considered as equity in the fund.

What happens if a participation is sold in the meantime?

Dividend is distributed when DSTF receives a dividend payment from one of its participations or when a participation is sold. Dividend will only be distributed once there are liquidity surpluses and the portfolio is already fully invested. Therefore, this is expected to occur from year 3-4 onwards.

What is the reason that banks are not being used?

In principle, we do not work with external financing and therefore do not use capital provided by banks. Additionally, the time horizon of banks is too short. We do not want to be dependent on this.

What is that 10% return based on?

The 10% return is an assumption based on the expectation that the participations held by DSTF are classified in segments within the sporttech and vitality market that are experiencing exponential growth. Since DSTF is looking for companies with a minimum annual return of 15%, it is also plausible that this return can be achieved.

What is your vision on sustainability?

We will also assess the participations based on their efforts in the field of sustainability. For DSTF, sustainability is an aspect within the selection process at the front end.

Which costs are charged?

The management charges an annual management fee and other costs are charged to DSTF by third parties. DSTF tries to keep costs as low as possible upfront. This ensures that as much money as possible remains after the ‘exits’.

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