Summary:
10 entrepreneurs pitched their ideas at Dodgers Stadium in 2015, marking the start of a sports tech accelerator era.
The Dodgers accelerator inspired many teams to launch similar programs, but they faced high costs and limited success.
Investment in sports tech has skyrocketed, with projections nearing $10 billion in 2024.
New models like Elysian Park focus on smaller, targeted investments rather than traditional accelerator formats.
Programs like NBA Launchpad and MLS Innovation Lab aim to address specific league challenges rather than just seeking unicorn exits.
On a clear, 72-degree evening in Los Angeles, 10 entrepreneurs took the stage at Dodgers Stadium in November 2015 to pitch their ideas for the future of sports technology. As the mobile, social, and digital revolutions reshaped the world, sports were ripe for innovation. This led to the launch of an accelerator program by the Dodgers and R/GA to identify companies poised to transform the sports experience.
The Team Accelerator Era
Initially, the Dodgers' model sparked a wave of interest, with various pro sports teams launching their own accelerator programs, including the 76ers Innovation Lab and Cowboys Blue Star Accelerator. These programs offered benefits such as industry mentorship, pilot program opportunities, and crucial investment.
However, challenges soon arose. The cost of scouting and supporting startups could reach $1 million annually, and there simply weren’t enough compelling startups to sustain all these initiatives. Despite some success stories, like Appetize and Kinduct, the overall exit rates were disappointing, causing many programs to shut down or pivot.
A New Model
As the landscape evolved, the Dodgers' investment firm, Elysian Park, restructured its approach, reducing cohort sizes and focusing on specific pilot programs instead of the traditional accelerator model. This shift mirrored a broader trend in tech towards venture studios, which focus on creating companies from the ground up.
Investment in sports tech has surged, with nearly $10 billion projected in deal flow for 2024, leading to the emergence of nine new sports tech unicorns. New leagues such as the NBA Launchpad and MLS Innovation Lab have been established to keep pace with technological advancements, focusing on solving specific operational challenges rather than merely chasing unicorns.
Starting Small—Again
For newer startups, opportunities remain, with many venture capital funds now active in the sports market. Programs like Techstars Sports Accelerator have launched with a consortium model, facilitating collaboration among various stakeholders to support promising ventures. The evolution of these accelerators reflects a cycle of consolidation and the potential for a new wave of innovative companies ready to emerge in the sports tech sector.
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