'This is the time': SeventySix Capital CEO says Sports Tech Industry is Ripe for Innovation, Investment
By Ryan Mulligan – Reporter, Philadelphia Business Journal
SeventySix Capital founder Wayne Kimmel is in Las Vegas this for the Super Bowl and will then head to Indianapolis the following week for the NBA All-Star Weekend and its annual All-Star Technology Summit.
These big sporting events may not have a reputation for being innovation hubs, but as the world of sports and technology continue to mesh together, they're increasingly becoming a draw for investors and entrepreneurs looking to get in on the ground floor of the next generation of sports technology.
That's manifesting in various forms likes sports betting, streaming, analytics and movement-tracking equipment, all of which are being incorporated in the ways people watch or play sports more and more.Kimmel said for entrepreneurs, "these types of tentpole events across the industry, these are the places to be. These are the places where you make a lot of your network, make a lot of connections."
Under Kimmel, King of Prussia-based SeventySix Capital has become a leading investor in innovative sports tech startups. The firm has a stable of professional athletes in its fold, particularly its Athlete Venture Group. Chaired by Philadelphia Union midfielder Alejandro Bedoya, the group includes former Philadelphia Eagles running back Demarco Murray, former New England Patriots fullback James Devlin and former Denver Broncos wide receiver Emmanuel Sanders.
Kimmel see ample runway within the sports tech industry, particularly as it relates to data and analytics, noting that the industry as a whole is "ripe for innovation."The Business Journal spoke with Kimmel about the future of sports technology and opportunities he sees for growth. Below are highlights from that interview, edited for length and clarity.
How would you put the current state of sports tech in context?
This is the time. This is the time to invest for us, or for an entrepreneur. It's time to start a technology company that's looking to transform sports, media and entertainment. This is the time to do it. It's a unique time where the doors are open and people are interested. People are looking to figure it all out. You see the values of these TV contracts, you see the values of the sports teams, you see the fact that fans are just so passionate about their certain sport, and parents want their kids to be the next LeBron [James] or Serena [Williams]. There's just so much. These opportunities are all out there today.
Where do you see opportunity for more tech in sports?
We've been building this company for a number of years for these types of moments and now, these moments are happening. It's not just Apple, it's Meta, it's Amazon. All the major technology players are now leaning into sports, because sports is the most viewed show on TV.... One of the things is to make these telecasts and broadcasts even better, whether they're being streamed or they're on regular TV. Fans want to engage more, they want to know more, they want to know more stats, they want to learn more about the players, they want to learn a lot of information. But also they may want to legally wager on that game. The growth of the sports betting industry has just been phenomenal over the last five years.
Does AI have a place in the future of sports?
The answer is absolutely yes. We've been investing in companies that have used artificial intelligence, machine learning for many years. It's something that absolutely is being used across sports, it's something that will enhance the fan experience. It's something that will enable you to be a better athlete. ... Artificial intelligence is being used across the sports betting industry to be able to bring in more and more data points like AI is being used across fintech in different types of trading platforms — similar types of uses in the sports industry.
Which areas of sports tech are you most excited about right now?
Our investments in the sports betting industry around integrity and compliance are increasingly more and more important. Our investments in companies that are helping you as a fan to personalize or customize your experience are very, very important. A lot of the tech that just continues to get better and better is enabling even the youth sports industry to become more fun for young people to play.We came out with the first ever smart baseball bat. Our portfolio company, Diamond Kinetics, came out with that. To see these types of advances where balls, bats, sticks and rackets all become smart, what does that mean? How will that enable young people — and anyone who plays any sport — to have more success, have more fun, be more engaged in what they're doing? [That] is something that is really an exciting thing for us.
Do you have your eye on any particular local sports tech startups right now?
Epoxy.ai (one of the firm's portfolio companies) is a company that's using the latest technologies — whether it's AI or machine learning — to help sports books and media companies really personalize their digital experience that their customers are looking for. That really goes to the overall thesis of what we're doing here at SeventySix [Capital], this idea that we're still in the very early stages of, especially, the sports betting industry. A lot of the apps that are out there today ... are not as advanced as they could be. And they're certainly not personalized to the level that they will be.