We’ve had dozens of top sports investors on the podcast…
However, many of them respond with cryptic messages about what they’re looking for (and rightfully so).
To provide the best info possible for Profluence members…
I asked investors in anonymity what they are REALLY looking for.
This is a gold mine????
SportsTech Companies
One of the most prominent sports VCs sent me this.
We are looking for the following in SportsTech:
1. Category-Creating Technology
We’re not going to back incremental features…we’re looking for foundational tech that redefines how sports are played, consumed, or monetized.
Think: AI aggregation, edge-computing for real-time data capture, or immersive fan engagement experiences.
2. Wedge into a Larger TAM
We seek companies with a clear roadmap into broader verticals like fitness, health, gaming, media, etc.
The best sports tech is really “XTech,” with sports as its go-to-market.
3. Operator-Obsessed Teams
We like to back founders who’ve lived the problem.
Former athletes, coaches, engineers, or media insiders who can build, sell, and adapt quickly in a domain that’s tough to crack from the outside.
4. Tech That Sells Without a Logo
We avoid companies that rely solely on big leagues or teams for credibility.
Instead, we look for products that are scalable across youth, amateur, and/or global markets that can grow bottom-up, not just top-down.
5. Embedded Distribution Advantage
Sports can be noisy and very relationship-driven.
Great companies either:
- Have a built-in network
- Are embedded in existing workflows (e.g., coaching, betting, recruiting)
- Or offer tech that others are incentivized to distribute (e.g., affiliate loops, viral content, product-led growth)
6. Efficient Early Monetization
We look for businesses that can demonstrate traction early without raising a ton of capital to make it happen.
Ideal companies:
- Sell into existing budgets (marketing, advertising, fan engagement)
- Unlock non-obvious revenue streams (data, betting, brand licensing)
- Can show repeatable, scalable monetization by Seed or Series A
7. Long-Term IP & Data Moats
The endgame isn’t just product…it’s owning proprietary data, athlete rights, or IP that compounds over time.
We ask: Will this company get stronger with each user, dataset, or integration?
8. Global Optionality
Whether it’s a consumer app, coaching tool, or camera technology, we value products that aren’t geographically limited and can scale internationally with minimal customization.
9. Strategic Exit Pathways
We reverse-engineer to determine who could acquire this and why. Is it leagues, platforms, apparel companies, media networks, gaming giants, PE firms, etc?
Bonus points if you’re already building something they can’t easily replicate.
10. Unsexy Infrastructure Wins
We like tech that powers the ecosystem behind the scenes such as data plumbing, payments, compliance, scheduling, logistics, etc.
Often overlooked, these are painkillers, not vitamins (and they scale across verticals).
11. Realistic Entry Point for Venture Returns
Sports is sexy, but not all companies can become worth $1 billion.
We look for companies where:
- Valuation makes sense
- Cap tables are clean
- And we have a credible path to return the fund
Early-stage founders would greatly enhance VC interest by raising their first round at lower valuations.
Emerging Leagues
A different prominent sports VC sent me this.
We are looking for the following in emerging leagues:
1. De-Novo Formats
Truly new, innovative formats that aren’t directly competing with existing/major sports leagues or rely on partnerships with existing leagues to succeed in gaining scale.
2. Quick Profitability on an Event Level
Based on the distribution above, the ability to generate meaningful revenue via sponsorship, ticketing, or other methods at scale that can show a clear and near-immediate path to profitability on an event level…without relying on any paid media rights deals (per above).
3. Non-Media Rights Dependent Distribution
Unique distribution channels, usually through short-form streaming, that involve high-engaged talent (creators/personalities) on Day 1 to create buzz and viewership.
4. International Upside
IP and product offerings with a clear demand at an international level are increasingly crucial for streaming-first concepts.
5. Early Entrance Opportunity
Early enough entrance stage and valuation that we can underwrite to a fund-returning outcome, which is typically challenging with leagues due to inflated valuations or more-than-average dilution over time.
Again…
Keep in mind that we’re a venture capital firm. Family offices, angels, and opportunistic funds will think about emerging leagues differently.
Early-Stages
There is still a significant gap in the early stages of sports, media, and entertainment from an investment lens.
I won’t say any names here, but in the early-stages:
- one fund is winding down operations
- many accelerators/incubators have come and gone
- multiple funds are raising new vehicles (not too liquid for new deals)
- a few funds are reevaluating their strategies and adding “growth” vehicles
While now may feel like a particularly challenging time to raise capital in sports, it’s also the most optimal time in the industry’s history.
Final Takeaway
If you’re building in sports tech or launching a league, use this as your investor checklist.
It’s never been easier to build; it’s also never been more competitive to raise from the best.
Build with this playbook in mind (and you’ll stand out).
- On YouTube, we have a sports investor podcast section.
- In the community, we have investor lists that will be helpful.
