Atlanta Hawks will launch a venture capital operation to help small businesses owned by women and minorities. These small businesses are often underfunded by traditional funding sources.
The CEO of the Atlanta Hawks as well as State Farm Arena, Steve Koonin told The Atlanta Journal-Constitution Wednesday that Hawks Ventures will be launching a $50 million fund to help early-stage companies. The NBA franchise offers more than just financing, because of its depth of experience, which includes customer service, food, and entertainment.
“Sports is this megaphone” – Koonin stated that there are many opportunities available to us, that we should look into and invest in.
The firm will be called Hawks Ventures.
Venture capital is often the best source of funding in the early stages. It’s like the mother’s milk that helps to grow tech startups. These investments are high-risk and high-reward ventures. Startups in this stage of development often have not yet reached profitability, so they may need to be refocused on their products.
Last week, leAD Lake Nona and the Orlando Magic launched a venture initiative together and Indiana University launched one as well.
The Hawks’ venture fund is coming at a time when venture capitalists have begun to pull backin light of rising interest rates, high inflation and uncertain economic times. Georgia venture capital funding was $2.3 billion last year, dropping 43% from 2021’s record-setting $4 billion, the Atlanta Business Chronicle reported using data from Pitchbook.
Despite Atlanta’s rising reputation technology hub, the Peach State is still behind rival hubs for funding investment in early-stage companies. According to Pitchbook data, California saw more than $100 billion in venture capital investments last year. Pitchbook data shows that companies in Sun Belt states such as Texas, Florida, and North Carolina received more VC funding than Georgia last year.
The Hawks’ investment fund expands upon the franchise’s community-driven efforts. And this comes at the time Venture Arms are taking over sports.
