New technology from startup ventures is transforming the sports industry. The mission of this series will be to introduce startup companies in the sports technology space to a broader audience and allow Founders of promising new ventures to tell their story. Feel free to contact us if you know of a startup that should be considered for this series.
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Company: RaceNote
CEO: Dusty Reynolds
Headquarters: Omaha, Nebraska
1. What is your elevator pitch?
RaceNote is a motorsports management platform that makes race teams faster. Our technology allows race teams to make better decisions, quicker. Motorsports teams are in constant search for a competitive edge, which is gained through data driven decisions by engineers. This data (car settings, weather, lap times, etc) is currently stored in multiple places such as isolated hardware, spreadsheets, notebooks or mobile devices. This fragmentation prevents teams (drivers, crew chiefs, engineers) from making quick decisions. RaceNote consolidates, organizes and analyzes all of this in one, easily accessible platform. Moreover, RaceNote provides unique data to the platform that is exclusively available from RaceNote. One example of this is the audio transcription “bolt on.” RaceNote has built a system that converts race team’s radio communication to text, allowing teams to learn their competition’s race and pit strategies.
2. Problem & Solution
Problem: Auto racing is, quite arguably, the most technical sport. And, just as in many other sports and industries, data and information are now being used to make better decisions regarding the car & driver’s performance. This information, however, is not easily accessible, organized or in some cases even known. This results in slower lap times, poor decisions and ultimately a reduction in the race team’s bottom line.
Solution: RaceNote works as a platform that provides race teams with a better way to manage their data. Using RaceNote technology and software, teams are able to centralize all of their information and data. RaceNote not only puts this critical information in one place, but also outputs reporting and analysis tools to help race teams better manage themselves.
3. Market – your target market and the overall market
The global motorsports market has more than 900,000 active motorsports teams with each team accumulating an average of $20,000+ in annual expenditures. The primary target of RaceNote is the Tier 1 market segment. These professionals spent an average of $300,000 on software in 2014, compared to the $10,000 that was spent in 2005. Furthermore, the other two racing market segments (Mid-level and Amateur), are vastly underserved. RaceNote is in prime position to gain deep market penetration in the estimated $500M segmented addressable market. It must also be noted that secondary markets exist for RaceNote to approach with the most obvious being fans and media. Looking at NASCAR fans, there are more than 50 million in total with a $3.5B annual spend. Going globally, Formula 1 has a fanbase of 425 million.
4. Business Model – how do you make money?
We sell directly to race teams with a yearly Saas model. Our RaceNote Platform allows for teams to “bolt on” different data points (Audio, car settings, weather, lap times, etc.) at various prices to create custom packages that meet the race team’s needs.
5. Management Team – with titles
- Team Manager: Dusty Reynolds
- Technical Crew Chief: Kevin Berry
- Operations Crew Chief: Kyle Tut
6. What else do you want the audience to know about your venture?
Our RaceDay product alters how race teams use audio communications as data to make decisions. During a race, teams communicate over radio to discuss pit strategy, handling of the car, adjustments needed, etc. RaceDay takes this audio communication, turns it to text, and then presents it to teams in a TweetDeck-like interface. This allows teams to hear and understand what every other team is doing in real-time to make their own decisions. It’s the equivalent in football of being able to listen to Bill Belichick discuss game strategy with his coordinators during the game.
Bonus Question: If you could go to any sporting event, what would it be and why?
24 Hours of Le Mans.
Nick DeGroot of Motorsport.com explains:
“Nearly every major race in the world has been modernized. It’s been turned into a controlled, relatively safe environment. Le Mans has escaped that though. It can not be tamed. Control is not a word you associate with this event. What other race do you see drivers working tirelessly on their cars on the side of the track after a wreck? What other race can a car crash in the dead of the night and vanish for hours before being found? When you take the green flag at Le Mans, you are racing away from civilization and into the unknown, with a race car being your only salvation as you battle around a circuit 8.5 miles in length. The prototypes (type of race car) are a way for manufacturers to display the most advanced racing technology in the world and Le Mans is the proving ground.”
Plus, the tech in the garage is just as amazing as the machinery on the track.