In APAC, $3.1b were invested in SportsTech in 2021 which is almost 5 times the figure
in 2020. Average deal value of $47m makes it the highest in the world but median value of $1.7m is closer to the norm.
The Playknox recently spoke with Jean-Baptiste Roy, co-founder of Asia Sports Tech to find our more about emerging startups, sports tech trends and the challenges within the industry. Jean-Baptiste has served in a variety of roles for more than 10 years in Asia including Director of the PE/VC arm for Clipper Capital (Family office of the Wertheimer Family) and Associate Director of Strategic Advisory for Censere Group/Stratiqa. Excerpts:
Tell us more about Asia Sports Tech.
Asia Sports Tech’s (AST) mission is transforming and empowering the sports, esports, and wellbeing ecosystems for Asia’s 4.5 billion citizens by leveraging breakthrough IPs & technologies. Our expertise lies in Market Entry, Growth, Supply Chain and ESG Strategies, with a strong focus on financial advisory. Since 2017, we have been assisting eminent European, North American, and Asian clients in developing their companies within the quickly expanding Asian environment.
What is the current sports tech scene in APAC?
The increasingly affluent and mobile-connected young consumer markets, as well as the expanding sports & esports ecosystem, are drawing international leagues, clubs, media rights holders, brands, and technology businesses toward Asia.
Although APAC has fewer startups, its sports tech market already has the potential to consistently surpass North America’s. It will definitely be the fastest-growing region for sports technology for the foreseeable future.
APAC’s Sports, Fitness, and Well-being ecosystems are undergoing a period of great transformation that is accelerating innovation and forming a rich startup landscape that implies huge business potential.
What trends will define the sports tech space in 2023?
AST sees the changing capital structure of leagues & teams, the increased adoption of ESG in sports, increased regulation on athlete / fan data monetization, and WEB3 integration as the primary trends in 2023.
Sports innovations that rely on AI are starting to proliferate, and this trend will also pick up speed in 2023. Investment in these businesses is growing, particularly in those where AI improves performance, analytics, and fan engagement.
Which sport do you think is doing great when it comes to integrating sports tech?
This is difficult to answer because the landscape is always changing very quickly, but the world’s biggest sport – Football, just showcased Sensor-fitted footballs, intelligent data analytics, immersive replays, and smart stadiums at the FIFA World Cup. All sports are learning to harness technology, and exponentially enhancing play quality and viewer engagement, and we are excited to see the next breakthrough.
What are the challenges which the sports tech industry tends to face?
The sports industry faces various challenges that vary and can be analyzed in many areas. However, nowadays, many of the challenges are associated with technology and its use to improve the sector’s experience. The sports industry is changing. To improve athletic and financial outcomes, it is more important than ever to be on the cutting edge and embrace technology.
The sports industry needs to seize this opportunity and begin modernizing so that fans can get closer to the action and their favorite players while also putting on a better show on the field; NFTs, Tokens, and wearable tech is just the beginning. People don’t just want to watch the sport; they want to participate in it. The challenges which the sports tech industry tends to face are the performance of athletes, game data, and engagement of the public and fans.
Performance of athletes: For years, the industry has sought to control the performance of athletes by measuring times, distances, heights, etc. Technology today enables us to know much more. We can assess an athlete’s overall health and suggest training or resting in accordance with that information. To maximize the performance of athletes and their results, this kind of technology could prevent injuries and personalize training. Given that much of this technology already exists, it is crucial to make it accessible to everyone in order to level the playing field and guarantee that sporting performances are up to par. Since athletes like to monitor their progress, this kind of technology may also be very appealing to the fitness sector. The more data that can be gathered, the better for these athletes, who enjoy keeping track of their progress.
Game data: Nowadays, not only the athletes’ statistics are important, general game data is also extremely valuable. These are used to track the progress of the contests and assist in determining league-wide averages. This information helps organizers, sponsors, and other stakeholders to analyze the competition’s development and the teams’ overall performance. This information is used to know, for example, at what speed the ball travels, how many passes are made during the game, and how effectively. In-game data, as opposed to a lot of player data gathered by teams, tends to be visible as it is examined both during and after competition or used by online bookmakers to affect betting. However, this information is not being utilized to its full potential and is primarily only used during the live event, the broadcast of the game, and the news coverage that follows. The teams could, however, benefit more from these findings.
Engagement of the public and fans: Not only the younger generations have lost interest in going to the stadium to see sports. The majority of sports fans are open to trying novel activities and ways to follow their teams. Since they are the ones who purchase the merchandise and event tickets, the majority of them are waiting for greater participation and recognition. As such, they should expect the club to provide them with more than just the bare minimum of your team’s good play.
Which sports tech startups are you advising currently? Any sports tech startup which you think has stood out?
We are proud to have many groundbreaking, and long-term clients from North America, Europe and right here in Asia.
Uplift Labs, (an Artificial intelligence (AI) motion capture startup) based in Palo Alto California, was recently facilitated by AST in their seed round by leveraging its extensive Asia and Global investor network in sports and sports tech. AST continues to support Uplift with strategic growth initiatives and in future investment rounds.
For long-term partner Kinomap (an interactive training app for indoor cycling, running & rowing based in France); AST has been developing and executing go-to-market growth strategies in China.
AST created a robust international growth stratagem for Move It (one of China’s biggest connected fitness content and equipment makers); including market research, internal interviews and a competitive landscape study to adapt to global markets in relation to the product line, product offers, pricing, and partnerships. We continue to work with Move It as close partners and international growth advisors.