NEW YORK —TPG Sports Group held its third annual Sports Tank, the equivalent of ABC’s Shark Tank, on Tuesday at the Katie Murphy Amphitheatre in Manhattan. Only TPG’s rendition exclusively included startups and early-stage companies at the intersection of sports and technology.
Eleven companies had the opportunity to pitch their products or services to six venture capitalists while also having the backing and ear of a sports advisory panel, which included executives with FanDuel, NBC Sports, Catapult Sports and others.
Following the event, two of the investors, Chris Webb (Co-Founder and Partner at Hickory VC) and Ryan Lawrence (Senior Vice President/Principal, Catalyst Sports and Media) discussed what companies stood out, how they vet entrepreneurs at pitch competitions and where do they take the conversation from New York.
For Webb, Canada-based Athletigen — which analyzes biometric and DNA — caught his attention during its three-minute pitch to the Sharks. As a potential strategic investor, Webb explained that he and his firm “could help Athletigen navigate some of the hurdles and challenges with the data.”
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“Athletigen right off the bat is one that is very interesting, but it’s one that I’d like to dive into a little more and learn some more specifics about their business model,” he added. “The whole DNA sampling is a very interesting space. It’s a sensitive and touchy subject right now as far as who owns that data and what you can do with it but in my opinion, it’s inevitable that we’ll see an increase in usage in that data. That’s one company I definitely want to dig into a lot more.”
Added Lawrence: “YouStake is an interesting company. They’ve taken a business model that has existed in the past, added software to it and made it more efficient and transparent. I also liked SidelineSwap. They’ve identified an opening in the marketplace and filled it with a simple product that adds value to both the buyer and the seller. I like the simplicity of them and also the execution.”
#SidelineSwap is an early favorite here at #sportstank
— Tracy A. Jones (@TRACYAJONES_) April 11, 2017
Lawrence said that beyond selling sporting goods, SidelineSwap — which is a peer-to-peer online marketplace — could expand into other areas where consumers sell goods for hobbies that they have grown out of, like a musical instrument for example.
At the event, the entrepreneurs and founders received feedback from sports industry professionals like Brian Kopp, President of North America for Catapult Sports and Kevin Pritchard, General Manager for the Indiana Pacers, among others.
Hickory VC’s Webb said that hearing how these stakeholders throughout the sports ecosystem responded to the companies was an aspect of the event that, more times than not, isn’t the case at traditional industry pitch competitions. He said that when he’s listening to company founders or CEOs give their pitches, he’s paying attention to how they act on stage, body language, posture, how they interact with the VCs before and after the event and their level of composure when answering questions.
“We’re often back in the jockey as much as the horse. This is a great way to get to know them,” he said.
Lawrence of Catalyst Sports elaborated that the advisory panel adds a real-world perspective from executives in the industry who could potentially leverage a company’s product or service.
“For us personally, in any investment that we make, we need to have a strategic value that we add to,” he said. “There are plenty of people out there who can write a check but how can we add strategic value across and media landscape? We’re always looking for that angle where we can add value.”
Following the event, which saw one company, Physiclo, receive two separate $100,000 investments from two angels/VCs, both Webb and Lawrence said that after the initial screening and some companies past the first test, they’ll set up follow-up meetings to conduct further due diligence on the startups.
“I’ll want to set up a face-to-face meeting or certainly follow-up calls and work through their deck,” Webb said. “There’s only so much you can do in 10, 12 minutes in this environment. You want to get to understand the company and people on a much deeper level.”
Added Lawrence: “You then get to understand (the companies/founders) on a personal level, understand their passion for the business and ultimately, if it’s a business we want to invest in.”