Dutch Sport Tech Fund
invests in startup
Horizm, which works for
Real Madrid, Chelsea,
Arsenal and Inter Milan

Dutch Sport Tech Fund has a new investment: Horizm aims to work for all top clubs and players worldwide. They help monetize their digital assets, such as social media, streaming apps, and the website.

The latest investment by Dutch Sport Tech Fund boasts a remarkable portfolio of clients. Horizm helps, among others, Real Madrid, Chelsea, Arsenal, and Inter Milan to generate more value from online channels. The company utilizes AI (artificial intelligence) in its approach. Pedro Mestriner, CEO of the company, explains how Horizm is helping to digitalize the traditional sports market and how Dutch Sport Tech Fund is supporting the company in achieving its ambitions.

The founders of Horizm are certainly not newcomers to the sports world. CEO Mestriner has worked for FC Barcelona, among others, and Chief of Product José David Poveda has advised organizations such as the NBA, Real Madrid, FC Barcelona, and Moto GP. The team is determined to help sports clubs seize all the opportunities offered by the digital revolution.

This is very much needed, as research shows. Companies’ sponsorship budgets are increasingly shifting online. Some companies already spend three-quarters of their advertising budget online. Advertisers are looking for data-driven insights so they know what each marketing euro delivers. Digital sponsorship is also becoming an increasingly larger part of companies’ revenue. A few years ago, it accounted for five percent of revenue; now it is thirty to forty percent and is expected to grow to eighty percent in the coming years. That’s why Horizm helps sports clubs and rights holders to digitalize their operations.

“We want to help all sports companies and owners of sports rights to better utilize digital channels. This should ensure that they generate more revenue from a greater variety of income streams. Many sports companies have stable income from broadcasting rights, ticketing, merchandising, and sponsorship. However, clubs face limitations, as the possibilities for these channels are finite. For example, there can’t be more than three companies as shirt sponsors.”

That’s where Horizm comes in. “We help sports clubs, federations, and other rights holders to monetize their digital assets, such as social media, streaming apps, and the website. This creates new cash flows and gives them a competitive edge. Not every party is equally mature when it comes to digitizing their operations; some clubs are still selling stickers and looking for shirt sponsors, while others are already seeking data-driven insights. We accelerate that digitization process.”

“Sports fans no longer consume content only via linear TV, but also online. The audience is increasingly active on social media, but clubs are still insufficiently able to determine exactly what their followers are interested in. Sponsors are also increasingly looking for digital channels, so that the marketing return is clear. As a result, our market is now undergoing a digital transformation, similar to what we have previously seen in, for example, retail. However, many companies are not yet data-driven, so we help them with this transformation. Once the sports sector has completed the digital transformation, the sector will be able to take advantage of other innovations such as the Metaverse, blockchain, and smart contracts.”

“Another trend we are leveraging is the implementation of Artificial Intelligence in this industry. We use machine learning by utilizing available data to make better-informed decisions. AI can also be used to make better predictions about the future. In this area as well, we provide commercial insights for sports brands. If a company posts thousands of messages on social media each year, it makes sense to analyze which content performs well with which target group. Those insights were lacking, but are now emerging with Horizm.”

“Due to the corona pandemic, many clubs realized that it is not wise to rely on a limited number of revenue models. As a result, there was a high demand for the digitalization of business, which Horizm has benefited from. Clubs saw that they need to be present where their fans are: online. Just like in other industries, the pandemic has greatly accelerated digital transformation.”

“Horizm counts leading clubs such as Real Madrid, Borussia Dortmund, Chelsea, Arsenal, and Internazionale among its clients. That is part of our strategy. The sports market is very hierarchical. What Real Madrid has, Chelsea wants as well—and that in turn inspires other clubs. These top clubs push us to create the best possible product, which we can then simplify for smaller clubs if needed. After all, it’s easier to simplify a Ferrari than to improve a less fast car.”

“Dutch Sport Tech Fund understands how the industry works. Sport is a different market compared to, for example, online retail: someone is a fan of Real Madrid, not of Amazon. Dutch Sport Tech Fund helps us because it has a strong network in the field of sports and entertainment, which we will benefit from. The fund’s experts also challenge us in our ambitions. We have a certain strategy, but the fund points out possible challenges and opportunities in the near future. That sharpens our strategy.”

“As for our future plans: of course, we want to continue growing and connect more clubs and rights holders in more countries and markets, such as eSports. We also intend to create a digital marketplace for brands. This will not only make it possible to determine the return on online sponsorship, but it will also make it easier for a brand to advertise online. With just a few clicks, it can specifically reach certain target groups by sponsoring rights holders or clubs. As a result, sponsorship becomes even more measurable and effective.”

“There are a few options. We can remain independent, raise more funding, and continue to grow further. We could also make an exit towards other interesting players in the market, such as large media agencies. An IPO, which is perhaps more traditional, is also an option. In the short term, we will definitely raise more capital. After all, we are starting a Series A round this quarter to roll out the next growth sprint and shine during the upcoming football season and the World Cup. To be honest, we are now focusing on the growth of the company, which should naturally lead to a great exit. Good execution of our plan is essential for this, so that we maintain our lead and can conquer even more markets and clubs.”

Dutch Sport Tech Fund
Mark Snijders CIO

Horizm
Pedro Mestriner CEO