Why sports technology
offers opportunities for
investors

Technology and data have been causing revolutionary changes in the world of sports for several years now, both among professionals and amateurs. The sports world is becoming increasingly digital; esports and fantasy sports are on the rise. This growing market is therefore interesting for investors. Even in times of crisis, knows Mark Snijders, founder of Dutch Sport Tech Fund.

In the world of sports technology, one innovation after another is being launched. From sensors in shoes that collect data to improve performance to solutions that engage sports fans even more with their favorite club or athlete. “Technology connects the worlds of sports, esports, and gaming, and this will only increase,” says former professional footballer Snijders.

“Vitality is an important theme for everyone nowadays,” he continues. “Many people are focused on living healthier lives, and thanks to sports technology, there are more and more opportunities to work on a different lifestyle.”

Snijder saw a gap in the market with all these innovations. With all the developments and growth in the field of sports technology, it had to become possible to invest in this area. His Dutch Sport Tech Fund is now the only fund in the Netherlands that facilitates investments in innovative and scalable sports technology companies, both in the Netherlands and far beyond.

Snijder does not do this alone; he and CEO Alexander Janssen have assembled a team of experts to assess the innovations. “We have specialists in the fields of media rights, e-commerce, data, but also accountants and people with legal expertise. Our ambassadors include Chiel Warners, former athlete and lawyer, and Marco de Ruiter, Head of Media Benelux at The Walt Disney Company. After the experts have given their verdict, an investment is submitted to the board.”

Jogo, the platform for talent development in youth football, was the second investment made by Dutch Sport Tech Fund in 2020. “Jogo was already successful after eight or nine months, and was then acquired by football community 433, founded by former footballer Demy de Zeeuw,” says Snijders. “433 has more than 50 million followers worldwide and creates content aimed at football fans.”

Among the new investments are Scorito, a Dutch platform where you can start a pool with your friends, and Link My Ride, an online platform to find cycling buddies. Link My Ride was co-founded by professional cyclist Tim Pidcock. “Through that platform, you can find someone who has the same level as you and ride a route together,” Snijders explains. “It’s more fun, challenging, and safer with two people. Influencers can also offer routes via Link My Ride to get fit together. You sign up and join the ride.”

Despite the less favorable macro-economic climate, the participations of Dutch Sport Tech Fund are doing very well. “Horizm and Fando are currently valued at multiples of the valuation at which we entered,” says Snijders. “It also happens regularly that our participations are approached for acquisition.”

No surprise: the sport tech market is also experiencing significant growth. “Globally, it is expected to grow by 20 percent per year. In other words: to around 30 billion dollars in 2024 and to 50 billion dollars in 2030,” says Snijders. “This is because this market is only at the beginning of its digital transformation. What is also favorable: precisely because of the crisis, we can buy in better, which is advantageous for our investors.”

The six sectors defined by Dutch Sport Tech Fund are: Human performance, Data & Analytics, Fan engagement, Athlete branding, OTT (Over The Top content), and Esports & fantasy sports.

“We invest in a mix of the most interesting start-ups and scale-ups and aim for an annual return for investors of 10 percent. Because we invest in multiple companies – both nationally and internationally – the risk is spread. Earlier this year, we had six participations; now we have eleven. Seven out of the eleven have increased in value. Ultimately, the portfolio should consist of more than forty participations.”

In addition to successes, there are also challenges: there is a staff shortage everywhere. “Developers in particular are hard to retain, because there is so much demand for them,” Snijders explains. “We are involved in the process of keeping teams together.”

According to him, this is what sets Dutch Sport Tech Fund apart from other funds. “If we believe in a product or solution, we also want to contribute to the growth of that company. Not: here’s some money. But: how can we work together to make your product or solution an even greater success? We also bring companies together at the table, like Scorito at 433. Cross-pollination yields more than competing.”

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

(Source: Telegraaf.nl)