Israel is recognized the world over for its technology innovation and excellence. Yossi Moldawsky, founding partner of Home Run Ventures, one of the only venture capital firms in the world focusing exclusively on sports technology, provides an overview of the exploding sports technology arena, and of the unique role Israel is poised to play in it:
What kinds of companies and technologies feature in the SportsTech arena?
SportsTech may sound like a narrow field, but it’s actually incredibly large. It’s also a very diverse market and includes a number of categories, all of which are growing very rapidly. The first category people think of when they think of SportsTech is Sports Science, in which technologies help enhance performance, prevent injury and facilitate recovery for athletes. But other categories are no less exciting, for example Digital Media technologies, Fan Engagement, Smart Stadiums, Gear & Equipment, Gaming and Esports, the fastest growing SportsTech category today. The final event of The League of Legends, a virtual Esport game, drew over 35 million viewers. That’s more than the NBA championship final!
Why did you decide to become involved in SportsTech investment?
As a seasoned investor in Israel’s high-tech scene, as well as someone who’s been involved in the business side of sports for most of my adult life, I know that the potential of the market is simply huge. SportsTech is already today a $150 billion market and growing. The growth has been nothing less than phenomenal - today 60% of twitter content is sports related. In 2005, 14% of the 100 most viewed live programs were sports events, but by 2015 that figure grew to 93%! Live viewing is especially effective for revenue generation, as its “DVR proof."
Why do you believe that Israel has the potential to generate successful SportsTech companies?
Israel is a truly unique innovation ecosystem. We have some of the brightest technology minds and entrepreneurs in the world, and the statistics prove it: Israel has the highest venture capital investment per capita in the world, the highest density of start-ups in the world, and Israeli startups are a major draw of foreign investment. All of the world’s leading tech companies - Apple, Microsoft, Google, Amazon, Intel, you name it have R&D centers in Israel. In 2015 Israeli hi-tech exits hit an amazing over $9 billion.
Now the Startup Nation is turning its talents to SportsTech. There are already a number of Israeli success stories in this arena. Just a couple of months ago Intel bought Replay Technology, an Israeli company which develops multi-dimensional video imaging technologies for sports, for a reported $175 million. Another Israeli company, 90min, is the biggest online platform for fan-created soccer content. One of the first SportsTech companies I invested in, WSC Sports Technologies, provides an innovative workflow automation solution for sport media-right owners, and is being used by world-leading sports media brands, such as the NBA. The number of Israeli startups entering the SportsTech arena is overwhelming, there is a huge pool of great teams and great ideas to choose from.
What approach does Home Run Ventures bring to the SportsTech arena?
There are only a handful of venture capital funds in the world focusing exclusively on SportsTech, and we are the only such venture capital funds active in Israel, so our insight into the market is invaluable for foreign investors interested in getting involved. My personal experience combines both worlds - I have been a leading early stage investor in Israeli technology companies for 16 years, so I have a deep understanding of Israel’s tech arena. I’m also very involved in sports, as former owner and Chairman of a premier league Israeli Football Club, as well as board member of pro basketball clubs.
Some of Israel’s most celebrated sports figures are involved in Home Run Ventures, and serve as advisors, including Yael Arad, Silver Medalist at the 1992 Olympics in Judo, and Andy Ram, one of the only Israeli tennis player to have won a Grand Slam event, mixed doubles at the 2006 Wimbledon Championships.
Where do you see the SportsTech sector going in the coming years?
As large and as smart as this arena already is, it’s just the beginning. One thing you can be sure of, as technologically exciting as the Rio Olympics are, in 2020 in Tokyo we’ll see technologies that will change the way we experience and engage in sports, and Israeli companies will be at the forefront.
Published by Globes [online], Israel business news - www.globes-online.com - on August 21, 2016
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