Scrum Ventures, a prominent Japanese venture capital firm, has set its focus on sports technology as a key avenue for substantial growth. With the support of some of Japan’s major conglomerates, the firm is keen on identifying and investing in innovative startups and businesses in the sports tech sector.
By leveraging the expertise and resources of these influential conglomerates, Scrum Ventures aims to foster the development and expansion of groundbreaking technologies that can revolutionize the sports industry. The firm’s strategic partnerships position it as a significant player in this thriving and dynamic market.
Scrum Ventures Sports
Scrum Ventures, founded by entrepreneur Tak Miyata with offices in Tokyo and San Francisco, has been a versatile venture capital fund for the past decade, investing in approximately 100 mainly tech-based companies, including notable names like Noom and Natural Fiber Welding.
Recently, Scrum has made a strategic shift towards targeting specific business verticals to optimize growth opportunities. The launch of the Scrum Sports & Entertainment fund, a $120 million venture capital fund managed by Proman and formed in late 2022, exemplifies this new approach.
With substantial backing from Japan’s leading conglomerates, including Mitsubishi UFJ Bank, a financial powerhouse with a market cap of $100 billion, Scrum Ventures is well-positioned to leverage its expertise and resources to drive innovation and advancement in the sports technology and entertainment sectors.
Sports Tech Approach by Scrum Ventures
Scrum Sports & Entertainment Fund is driven by specific investment criteria. First and foremost, they seek businesses with the potential to deliver venture capital-like returns, aiming for significant growth that can yield returns of over 30 times the initial investment.
However, the increasing interest from various funds in the sports industry has made it challenging to find such opportunities, as valuations have been bid up. Therefore, Scrum is particularly interested in identifying companies that can extend their offerings beyond just the sports market.
While it’s named a sports and entertainment fund, Proman clarifies it’s not seeking sports just for sports’ sake. “I refer to us a tech fund that invests in sports and entertainment, and I know that’s a very subtle difference,” Proman said. “But to me, it’s about leading with technology, and finding ways that technology transcends the vertical.”
To put it simply, “sports plus something else,” Proman explained.
Sports tech money continues to pour in.
