13 sports startups poised to shake up the industry, according to VCs and other top investors
- From Bandit to Unrivaled, these sports startups are poised for big moves in 2024.
- Business Insider asked top sports VCs and investors to pick the most promising early-stage companies.
- They highlighted upstarts tapping into the growth of running clubs, women's sports, soccer, and more.
Sports startups, from new professional leagues to media and gaming companies, are reshaping the industry, which remains a hot area for investment.
Sports tech, in particular, is driving dealmaking. 2023 was a banner year for sports tech, with more than $37 billion in M&A and financing deals, according to a report from investment bank Drake Star. That included 790 private financing deals, up from 752 the year before, driven largely by early-stage companies.
Companies looking to raise money face more competition than they did a few years ago amid a more challenging environment for startups overall.
But, in recent months, companies, including Breanna Stewart and Napheesa Collier's 3-on-3 basketball league Unrivaled, Tiger Woods and Rory McIlroy's TMRW Sports, and sports-betting content company SoBet, have announced fresh funding.
For the fourth year, Business Insider is highlighting promising sports startups to watch.
We asked top venture-capital firms and other investors in sports to nominate companies they have and have not invested in. They recommended a wide variety of early-stage companies across the sports landscape. The startups ranged from upstarts tapping into the rise of running clubs to businesses building responsible gaming tools for sports betting to an upcoming women's basketball league. Some aren't traditional sports companies but have developed tech that could transform the industry.
To keep this list fresh, we didn't include startups that we've featured in past years, though investors still nominated companies, including the Australian social-betting company Dabble, sports-information app Outlier, betting exchange Sportrade, and sports fantasy and betting platform Underdog.
Here are 13 promising sports startups to watch in the year ahead, according to the investors who know the space best (listed in alphabetical order).
Arris Composites' tech is being used in running shoes and trialed by Olympic athletes
Total funding: $180 million from investors including ST Engineering, Zebra Technologies, Youngone, Standard Industries, and more, per the company.
What it does: Arris Composites developed a lightweight carbon-fiber plate that's being used in running shoes and other performance gear for athletes. Its technology is also used across the aerospace and consumer markets.
Why it's on the list: "Insole innovation is long overdue," said Michael Proman, partner of Scrum Ventures, which is not an investor in Arris. "No disrespect to Dr. Scholl's, but performance optimization requires a modern-day solution, and what Riley Reese and the team at Arris have pioneered is impressive. Arris produces smarter, lighter, stronger, and more sustainable products at scale."
For example, Arris developed tech for Brooks Running, which was approved by World Athletics and used in Brooks' Hyperion Elite 4. Several athletes ran in the development version of that shoe during the US Olympic Marathon Trials in February, the companies confirmed.
Proman, who leads Scrum's sports and entertainment investment vehicle, said Arris is also promising because it transcends sports; its latest $34 million funding round is focused on expanding into the aerospace and consumer sectors. Arris is gearing up to launch its first DTC footwear product, Aurorra, in addition to working with footwear brands.
The company was founded in 2017 by CEO Reese, chief engineer Erick Davidson, and board member Ethan Escowitz.
Bandit is an apparel brand that's tapping into running communities around the world
Total funding: Undisclosed. Investors include Marc Lore and Alex Rodriguez's VCP Ventures, Bullish, Drive by DraftKings, Joyance Partners, Scrum Ventures, and 458 Capital.
What it does: Bandit is a New York-based running apparel brand that's built a cult following through content, commerce, and community-building, including hosting pop-ups at marathons and other running events.
Why it's on the list: Running clubs are thriving right now as young people turn to them, sometimes to curb loneliness. Bandit is helping drive this trend and is poised to benefit from it.
Founded in 2021 by CEO Nick West, creative director Tim West, and chief design officer Ardith Singh, the company has been tapping into running communities in the US and around the world.
Investor Meredith McPherron at Drive by DraftKings told Business Insider the company has stood out from legacy brands with a focus on products for performance runners that include strategically placed pockets for things like food and phones, as well as a unique content strategy, such as a recent project that sheds light on the challenges facing many professional runners who lack sponsorship and supports them with unbranded apparel.
"Bandit's unique approach to product and community engagement leads them down the path of creating an iconic brand in a sector that has long yearned for community and innovation," McPherron said.
Bandit has also built on its following with a membership program that costs $125 a year and offers perks like a standing 10% discount and early access to product drops. It's grown distribution to include two stores in New York, an online shop, and partnerships with specialty retailers globally.
"Bandit has the potential to leverage the strength of running communities around the world and take advantage of the continued popularity of participatory/endurance events to create a billion dollar brand," Michael Proman, partner at Scrum Ventures, which invested in Bandit through its sports and entertainment investment vehicle, told BI.
Boomerang helps sports venues manage and return lost items
Total funding: $8.7 million from investors including LightShed Ventures, LeAd, SeventySix Capital, Dream Ventures, and GGV Capital, per the company.
What it does: Boomerang is a lost-and-found platform for sports venues.
Why it's on the list: Lots of companies are innovating on the in-venue experience, but the lost-and-found space isn't one that's seen a ton of disruption.
Boomerang is helping stadium operators run more efficiently, and customers recover lost items.
"Boomerang will transform the sports and entertainment industry by reuniting fans with their lost items," said Wayne Kimmel, managing partner at SeventySix Capital, which is an investor in Boomerang.
The company, founded in 2021 by CEO Skyler Logsdon, COO Augustine Diep-Tran, and executive chairman Philip Inghelbrecht, said in June that it had grown its partnerships with US sports venues by 733% during the first half of the year.
C15 Studio powers free, streaming-TV channels for sports like Formula 1
Total funding: Undisclosed. Investors include KB Partners, Raptor Group, and Sharp Alpha Advisors.
What it does: C15 Studio powers free, ad-supported streaming channels with sports properties like racing organization Formula 1 and combat-sports promoter ONE Championship.
Why it's on the list: The upstart is helping sports expand into the growing FAST landscape and monetize content beyond live events. Its F1 channel is distributed on Pluto TV, Amazon's Freevee, and Samsung TV Plus, and streams race replays, highlights, and analysis, for example.
"I'm excited about the company because the FAST model has been largely untapped in the premium sports market," Steve Ahern, partner at KB Partners, which led C15's last funding round, told Business Insider.
The London-headquartered company, founded in 2023 by CEO Joe Nilsson and president Amory Schwartz, said its seed round was 75% oversubscribed. It hasn't disclosed other details about its funding, including how much it's raised.
"Secular trends favor sports teams and leagues opting for direct-to-consumer relationships that meet fans where they are — C15 will play an outsized role in this future," said Lloyd Danzig at Sharp Alpha Advisors, which also invested in C15.
Classic Football Shirts sells vintage and rare soccer jerseys and is poised to capitalize on the sport's US growth
Total funding: $38.5 million from the Chernin Group, per the company.
What it does: The company sells vintage and rare soccer jerseys to sports fans.
Why it's on the list: Greg Bettinelli, partner at TCG, is bullish about soccer's growth in the US because of events like the Copa America Final and the upcoming FIFA World Cup qualifiers that are bringing the sport closer to American soccer fans. He said the world's top international football clubs are playing more US games that actually matter.
"All this ties up to build-up of international soccer in the US and is why a company like Classic Football Shirts is super exciting," Bettinelli said.
TCG invested in Classic Football Shirts, which is based in the UK and has been around since 2006, in part to fuel its US expansion.
The company, founded by Doug Bierton and Matthew Dale, said it generated more than $23.7 million in revenue and earned an operating profit of more than $2.5 million for the 12 months through June 30, 2022.
Commonwealth created a model to invest directly in athletes, from racehorses to golfers
Total funding: $5 million from investors including Roger Ehrenberg's Eberg Capital, Howard Lindzon's Social Leverage, and former NFL wide receiver Larry Fitzgerald, per the company.
What it does: Commonwealth is a platform where people can buy into an athlete's career and get a cut of their earnings. It's facilitated offerings for racehorses, including 2023 Kentucky Derby winner Mage and Country Grammar, winner of the 2022 G1 Dubai World Cup, and it expanded into golf and tennis last year.
In athlete offerings, the athlete agrees to share a percentage of their annual income with investors over a set period of time in exchange for the money raised, which can be used on training and other professional expenses.
The platform, which the company said is fully SEC compliant, acts similarly to an underwriter in that it arranges the offerings and handles the post-offering investor relations.
Why it's on the list: Commonwealth is bringing the fractional model that enables ownership in assets like NFTs to sports.
"Commonwealth bridges the gap between fans wanting to support athletes they care about and athletes requiring money for training and development," investor Ehrenberg told BI.
One of its unique selling points is that it offers a taste of being a sports owner. Racehorse owners connect in WhatsApp groups and some investors in Mage, for example, celebrated in the Winner's Circle at the Kentucky Derby.
"From a financial standpoint, it sure allows you to get exposure to this asset class that you can't get any other way. But the other thing is the community," Ehrenberg said.
The company, founded in 2019 by CEO Brian Doxtator and head of racing Chase Chamberlin, aims to expand next into working with athletes from more sports, as well as teams and potentially leagues, Doxtator said.
DoTrust's tools can help operators spot problem gambling early on
Total funding: Undisclosed. It secured pre-seed funding from Tekkorp Capital.
What it does: Department of Trust, also known as DoTrust, provides tools that can detect early warning signals for at-risk gamblers.
Why it's on the list: The UK-based company, founded by Charles Cohen, has been expanding to work with gambling operators in the US.
Its tools can help operators sort the potential VIPs from those with possible problems, for example, said Matt Davey at Tekkorp, which invested in DoTrust several years ago.
He said that over the last 25 years in the international sports and gaming industry, he's seen regulated markets have a hard time keeping up with technological advances and the reach of digital sports betting and gaming.
"There are massive efficiencies to be gained as well risks to be mitigated with a predictive, data-driven approach," Davey told BI. "DoTrust are at the forefront of this, which makes it a very exciting prospect."
Basketball Forever owner Forever Network is bringing its social-first model to more sports
Total funding: $4 million from investors including Yolo Investments, Astralis Capital Management, Andover Ventures, and more, per the company.
What it does: Best known for its Basketball Forever brand, which has 1.3 million Instagram followers, Forever Network is building a network of social-first sports content brands.
Why it's on the list: Forever Network is taking its social-first model for sports breaking news, commentary, and culture beyond basketball.
The Australian company, founded in 2015 by Alex Sumsky and Nick Kelland, recently raised a Series A round to expand into more sports and fuel its US expansion. Part of its plans include building real-money versions of its free-to-play games, such as V.O.A.T., an NBA predictions game, to monetize and engage its audience.
"What I really like about it is they have that next generation of basketball enthusiasts," investor Benjie Cherniak said. "It's their ability to take that audience and look at the world of sports engagement. They've proven out the network and formula on basketball. Now they're replicating with football, hockey, and baseball."
ForKeeps is using digital collectibles to engage sports fans
Total funding: $54.5 million, per PitchBook. The company has not disclosed its funding. Investors include Signalfire, Galaxy Interactive, Sapphire Sport, Founders Fund, SV Angel, Nimble Ventures, and ADvantage VC, per the company.
What it does: ForKeeps is designed to engage the next generation of sports fans with games like racing and picks challenges and social features. Users can win virtual currency that can be exchanged for virtual gear of their favorite sports teams to show off their fandoms.
Founded in 2019 as GreenPark Sports, the company plans to relaunch later this summer with the new ForKeeps game and brand. It's partnered with the NBA and LaLiga to include officially licensed digital collectibles.
Why it's on the list: ForKeeps is tapping into the interest in digital collectibles to engage sports fans, particularly younger generations.
"While digital collectibles are undoubtedly subject to boom and bust cycles, there's no denying that a meaningful number of sports fans — especially millennials and Gen Z — value those collectibles as a way to engage with games and communities," said Chris Grove at Acies Investments, which has not invested in the company. "ForKeeps provides a platform for exactly the kind of experience that those fans are clamoring for, one that mixes a diverse array of unique digital sports collectibles with prediction-based games in a vibrant, community-focused ecosystem unlike anything else online."
ForKeeps was founded by Grillo and Ken Martin.
IdPair can help regulators monitor a bettor's activities across apps to spot signs of problem gambling
Total funding: $1 million from investors including Roger Ehrenberg's Eberg Capital, per the company.
What it does: IdPair combines a user's betting data across multiple apps and uses artificial intelligence to help spot signs of problem gambling.
Why it's on the list: Responsible gaming is a huge focus across the gambling industry and idPair is working with state regulators to help get a broad view of a bettor's activity by facilitating data sharing across operators, said Ehrenberg, idPair's lead investor.
"They have developed a platform that takes in secure, anonymized data from operators to develop a nuanced understanding of a bettor's financial resources," he told BI, adding that idPair also offers tools to make it easier for bettors to opt-out of marketing promotions and bonuses, and for operators take action to promote safe gambling.
"I am a huge believer in responsible gaming," Ehrenberg said. "To me, betting should be fun and a form of entertainment — not degeneracy. But I also acknowledge the psychology that makes it hard."
CEO Jonathan Aiwazian founded idPair in 2022.
Mantel is a social network and content platform for collectors
Total funding: The startup has raised $4 million from investors, including SevenSevenSix, Wheelhouse Entertainment, Courtside Ventures, and Switch VC, per the company.
What it does: Mantel is a social network and content platform designed for people who like to collect trading cards, sports memorabilia, comic books, and more.
Why it is on the list: Steve Ahern said he believes Mantel is a fun and safe platform for collectors of all types and that there is still a lot of growth in the collectibles market.
"Right now, collectors are using a bunch of different platforms to see the latest trends, chat about their collection, and watch collectibles-related content," said Ahern at KB Partners, which is not an investor in Mantel. "But Mantel's one-stop shop approach has the potential to be extremely powerful in creating a much more robust community, where beginners can learn from experts, and everyone can feel safe to show off their collection."
Splash Inc. is harnessing influencers to create and promote sports contests like survivor pools
Total funding: Over "eight figures," per the company. It announced in January a $14.1 million Series A2 round with investors including Elysian Park and Acies Investments and an investor group that includes prominent angel investors.
What it does: Splash Inc. is a peer-to-peer gaming company that owns sites like RunYourPool.com for hosting betting pools, and recently launched a Splash Sports brand to host competitions.
The idea behind Splash Sports is to bring on influencers to create survivor pools and other contests where users you can play against each other. The creators, which the company calls "commissioners," can promote the games and make money when people participate.
Why it's on the list: After helping bring the office betting pool into the modern area, Splash is tapping into the market for free-to-play and real-money games of skill, and working with creators to build community and grow its audience.
The company, founded in 2021 by co-CEOs Joel Milton and TJ Ross, said it has over 2 million active users.
"Fans have shown time and time again that traditional sportsbooks only serve a slice of the interest that people have in mixing sports, predictions, and prizes," said Chris Grove at Acies Investments, which invested in Splash. "Splash taps into one of the most popular formats in the history of real-money sports games — pools — to provide a casual, social, and incredibly engaging experience enjoyed by tens of millions of American sports fans every year."
Unrivaled is a 3-on-3 women's basketball league disrupting the pay and ownership models in sports
Total funding: Undisclosed. The company announced in May a seed round with investors including US soccer stars Alex Morgan and Megan Rapinoe, former NBA All-Star Steve Nash, LPGA champion Michelle Wie West, Meadowlark Media cofounder and ex-ESPN president John Skipper, and many more.
What it does: Unrivaled is a 3-on-3 professional women's basketball league that's set to launch in January. Founded by women's basketball stars Breanna Stewart and Napheesa Collier, it's innovating in the women's professional sports landscape with a model of compensation and ownership. Launching in January 2025, Unrivaled will feature 30 of the current top women's basketball stars in the world across six teams for a 3-on-3, compressed full-court style of play.
Why it's on the list: Unrivaled aims to disrupt the pay and ownership models around sports.
The company said it will give athletes equity in the league, and that its contract opportunities will offer the highest average salary in women's professional sports, CNBC reported.
The upstart is also creating more opportunities for women athletes at a time when women's sports are booming in audience and media attention.
"For many years, there has been a feel-good narrative around supporting women's sports. I am proud that we are now in an era where supporting women's sports is more than a PR move — it's a smart business decision," said Morgan, who, through her firm Trybe Ventures, helped bring together the investor group that's backing Unrivaled's launch. "Viewership and opportunity are at an all-time high, and in order to keep the momentum going, we need to continue to invest with our media, our marketing, and our wallets. The time is now."
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