Following the Momentum: Recent Trends in SportsTech Venture Capital
By: Isabella Deleo & Pascal Mukendi
A Rising Trend
In recent years, we have seen a steady increase in innovation within the sports industry, specifically with the emergence of an industry-wide focus on sports technology. This subsector has surged in growth driven by the rising popularity of esports and gaming, which has drawn in younger digitally native audiences and attracted many new players. The rise in artificial intelligence (AI) technologies has led to the emergence of countless new technologies that focus on athlete performance optimization and injury prevention in the form of data analytics and sensor technology that work in tandem to improve insights into athletic performance. AI has also been incorporated into platforms that improve fan engagement with their favorite teams and players, drawing in all sorts of audiences. Meanwhile, athletes themselves are becoming venture investors and media brands, often backing startups that align with their values or performance needs. Fans are demanding more access, transparency, and unique experiences — and startups are racing to meet them with smart solutions. From immersive fan experiences to athlete-focused platforms, investors are channeling significant funds into innovative ventures reshaping the sports landscape.
The Emergence of Sports Technology VC Funds: A Signal of Market Growth
This rise in interest within the sports technology space has garnered significant attention from start-ups and venture capitalists who are constantly working to discover the next best platform, technology or product within the space. There are many emerging funds that focus solely on investing within the sports technology space and the sports industry as a whole.
One notable fund that has recently entered the spotlight is the Halo Experience Company (HXCO), a venture capital investment firm specializing in tech startups within sports and entertainment co-founded by Jazz and Utah Hockey Club owner Ryan Smith and Accel partner Ryan Sweeney. HXCO is raising up to $1B with the goal of supporting around 24 portfolio companies within their growth trajectories. The co-founders describe sports as being involved in a variety of massive markets: social media, security, health and wellness, digital media, talents, and more. The two sight the rise of AI as part of the technological revolution as being a part of their eagerness to fund companies within the sports technology space specifically. Growing consumer interest within the sports industry combined with the technological revolution of the modern day has ignited the growth of sports tech industry within the venture capital space.
The emergence of dedicated sports tech venture capital funds like HXCO underscores the sector's maturation and long-term potential, reflecting a broader recognition that sports now intersect with some of the world’s largest and fastest-growing industries—including digital media, health tech, and AI-driven innovation.
Major Exits and Acquisitions in Sports Technology
The sports technology sector experienced a significant surge in mergers and acquisitions (M&A) during 2024, marking a 44% increase in deal activity compared to the previous year. Notably, the first half of 2024 alone saw 225 M&A deals totaling $27.3 billion, tripling the deal value from the second half of 2023. Amongst these major transactions included Silver Lake's $13 billion acquisition of Endeavor and Liberty Media's $4.6 billion purchase of Dorna Sports. This increase reflects a growing investor interest in transformative deals, particularly in areas like fan engagement, performance analytics, and sports betting.
Private equity investment has also become increasingly prominent in the sports ecosystem. U.S. sports leagues, such as the NFL, NBA, and MLB, have relaxed ownership restrictions, allowing PE firms to acquire minority stakes in franchises. This shift has led to heightened valuations and intensified competition for team ownership. Additionally, the United Football League (UFL) launched the Football Advancement through Sports Technology (FAST) division in 2025, providing a platform for companies to test and implement innovative sports media and technology solutions.
The IPO landscape in sports tech also showed signs of revival in 2024. Amer Sports, known for brands like Wilson and Arc’teryx, went public on the NYSE, raising $1.56 billion. Other notable IPOs included Viking Holdings and UL Solutions, each raising over $1 billion. While the overall IPO market hasn't returned to the peaks of 2021, the success of these offerings indicates a cautious yet positive trend. Looking ahead, several sports tech companies are preparing for potential IPOs in 2025, influenced by favorable market conditions and investor interest.
Final Thoughts
In summary, the recent surge in venture capital, M&A activity, and IPOs within the sports technology sector signals a transformative moment for the industry—one where technology, entertainment, and athletic performance are becoming more deeply intertwined than ever before. From startups leveraging AI to enhance fan engagement and performance, to billion-dollar acquisitions and the emergence of dedicated VC funds like HXCO, the ecosystem is rapidly maturing and drawing in a diverse set of investors, founders, and stakeholders. As traditional sports leagues embrace innovation and loosen ownership structures, and as fans continue to demand deeper, more immersive experiences, the sports tech space is positioned for sustained growth. This is coupled with a general increased interest in fitness and wellness across social media, and ultimately society itself. With momentum building across early-stage funding, strategic acquisitions, and public market debuts, sports technology has firmly established itself as a high-growth industry at the intersection of media, data, and human performance.
Sources:
Sports VC Firms - 23 Top Sports Venture Capital Firms 2025
New Sports Tech Funds: Updated 2025 - STX
Ryan Smith, Ryan Sweeney launch sports tech fund Halo Experience Company
EXCLUSIVE: Sports mergers and acquisitions rise 44% in 2024 as private equity fuels record year