Chicago venture firm KB Partners is raising $100 million for its second fund to back promising sports-tech startups.
KB Partners has so far raised $64 million toward that goal, CEO Keith Bank said, adding that he expects the final close of the $100 million fund to take place this summer.
The new fund follows KB Partners' $41 million debut fund in 2018. The VC firm invested in 16 companies from its first fund and plans to back 25 startups in fund two. It writes checks between $1-3 million, investing in early-stage seed and Series A rounds. It backs startups operating in and around sports betting, e-sports, fitness, streaming and live experiences, Bank said.
Bank, a seasoned tech investor and executive, said the legalization of sports betting and the emergence of e-sports have sprouted entirely new industries of sports technology companies. Combine that with the massive rights deals media companies have paid to professional sports leagues, which has in turn required them to launch streaming platforms and other digital initiatives to keep fans engaged, and it's a lucrative opportunity for startups building the tech infrastructure for sports businesses.
"There’s been more innovation in sports tech in the last 5 years than in the 100 years prior to that," Bank said.
KB Partners' Chicago investments include video streaming startup Phenix and interactive streaming platform Streamlayer.
Bank has been an early-stage startup investor for more than two decades. He also founded Club Champion, a golf equipment company that was acquired by private equity firm Levine Leichtman Capital Partners in 2019.
Investors in KB Partners' latest fund include several high-profile figures in the sports and business world, including Callaway Golf CEO Chip Brewer, Hall of Fame running back Curtis Martin, former NBA player Elton Brand, Ariel Investments co-CEO John Rogers, and Reggie Love, the former aide to President Barack Obama.
