This is what the promising
future of
sports technology looks like

In recent years, the value of sports tech companies has grown significantly, and the prediction is that this growth will continue for the foreseeable future. The global value of sports technology companies increased from around 11 billion dollars in 2019 to the current value of 31 billion dollars. By 2030, this market will represent a value of around 50 billion dollars. Alexander Janssen, CEO of Dutch Sport Tech Fund: “We are at the beginning of the democratization of sports technology. And sports will benefit from this.”

Drake Star found that the market for startups and scale-ups in sporttech is particularly liquid. In the third quarter of 2023, there were already more than 300 acquisitions, mergers, and investments. These 300 transactions represented a value of more than 10 billion dollars. It is important to note that this concerns just one quarter. So, there is a lot of activity in this market.

Throughout 2023, investment funds raised about 7 billion dollars to invest in sports technology companies; the American RedBird alone raised 2.3 billion in capital. By October last year, there had been around 900 transactions, involving approximately 31 billion dollars. Drake Star therefore describes the market as particularly active and expects that many more transactions will take place in the near future, as investors want to put their money to work. AI, fan engagement, ticketing, and venue management are areas that are likely to continue attracting a lot of interest.

Alexander Janssen, CEO of Dutch Sport Tech Fund, recognizes this trend—the increasing use of data and technology in sports—and is happy to add a number of important developments to it.

1: From physical to digital and back again
“On the one hand, there is the trend of digitalization in sports. Major football clubs, for example, are setting up their own esports teams. These esports teams train under the same roof as other athletes and come together in an overarching environment where sponsors and brands also feel at home. Sport is gaining a digital component, and this digital aspect is finding its way back to physical reality, allowing the two to integrate.”

This way, Generation Z, for example, remains interested in traditional sports. After all, they have been staying away from stadiums en masse for almost a decade. Some “stand-alone” esports teams are already worth more than elite football clubs (the Dutch Team Liquid is already worth hundreds of millions). If you can’t beat them, join them.

2: Data will play an even bigger role
“Another trend is that more and more decisions are being made throughout the entire chain based on data. This is necessary to get more return from existing resources. Take the content of sports matches. It is poured out over fans as a one-size-fits-all product in the form of highlights shown on Sunday evenings. With the help of data analysis, that content can be better tailored to the wishes of younger fans.”

3: New revenue models for sports
“Sports organizations urgently need to look for new revenue models. At the moment, even the core activity of football is loss-making. Other sports attract even fewer viewers and are therefore even less profitable. Tapping into new revenue models (so-called monetization) is more important than ever. Technology helps sports companies with this. For example, 90 percent of fans never visit a stadium. Thanks to AI and the latest generation of fan engagement tools, it is now possible to reach and activate these at-home fans, so that they too become valuable to sports organizations.”

Janssen shares his view on the future: “Sport is only going to become more important. It addresses needs that are becoming increasingly urgent, such as (mental) health and connection. There is a lot of attention on divisions in society – between generations and different target groups. The ultimate binding agent for these groups is sport. Sport brings people together in a playful way. Technology is a natural part of this. Thanks to technology, it becomes possible to reach, connect, and serve more people. You can see this, for example, in our participations, which focus on communities of urban athletes, cyclists, golfers, or tennis players. With their technology, they ensure that people can find each other. We are happy to contribute to this with our fund.”

“We are also at the beginning of the democratization of sports technology. Technology that was previously only accessible to professional athletes is now everywhere. Take Polar watches, for example; you used to see them only among the elite, and now on almost every sports field. In the coming years, we will witness the democratization of more of this kind of sports technology. And the sports climate will benefit from this, as it enables more players to develop further and faster.”

Dutch Sport Tech Fund responds to these developments and focuses on startups that are able to quickly gain market share and grow rapidly. Groundbreaking technology is not always necessary for this. “Our mission is to ensure that our shareholders achieve a good return. We have an investment horizon of 5 + 2 years, which makes long-term prospects less relevant. We select based on a strong approach to the market—a so-called go-to-market strategy. My message to startups seeking funding is therefore: don’t just tell investors about the technology you are developing, but also (and especially) about how you plan to capture market share.” According to Janssen.

Top athletes and managers are also joining the Dutch Sport Tech Fund. What attracts them to the fund? DSTF is working on the future of (top-level) sports, which means the fund also contributes to the legacy of top athletes. By working with the Dutch Sport Tech Fund, top athletes help create an environment in which the torch is passed on to future generations.

Janssen explains: “Top managers and entrepreneurs often notice that the same values are central in both top-level sports and the business world: collaboration, excellence, and achieving goals. In the Dutch Sport Tech Fund, the best of both worlds comes together, and like-minded people work together to create something great. We are proud that our mission attracts both top athletes and top managers. Our portfolio companies benefit from their network and know-how, both in sports and in business.”

Investing in the Dutch Sport Tech Fund is now possible from 100,000 euros. Interested? Request the Dutch Sport Tech Fund brochure here.