DivInc, an accelerator program for people of color and women entrepreneurs, is dipping its toe into sports tech.
Austin-based DivInc, which expanded into Houston in 2021, sees an opportunity to connect diverse startups with financing, mentorship and a network of professionals in sports business. The organization selected 10 startups to take place in DivInc Houston's 5G Sports Tech Accelerator, in partnership with Verizon, which will run from April through June.
To Ashley DeWalt, managing director for DivInc Houston, having the sports tech accelerator based in Houston is a no-brainer. The Bayou City is home to a premier base of professional sports franchises between the Houston Astros, Houston Rockets, Houston Texans, the Houston SaberCats rugby union team and the Dynamo and Dash. Collegiate sports also run deep in Houston with the University of Houston, Rice University and Texas Southern University. The Houston market is also home to a professional esports team, the Houston Outlaws, which has worked to establish a greater presence in Texas and are partnering with DivInc on the accelerator.
DivInc also sees opportunity in the emerging technologies in sports tech.
"You have all of these different factors that are driving growth, from NFTs to [name, image and likeness] platforms to esports and gaming," DeWalt said. "You have all of these different market drivers and to be honest, we really wanted to take advantage of that."
Upon completion of the DivInc Houston sports tech accelerator, each participating company will receive $10,000 in non-dilutive funding provided by Verizon. The 12-week program will take place at The Ion, the "innovation hub" developed by Rice Management Co. in Midtown.
Companies in the accelerator's first cohort will focus on a range of products and services across human performance, fan experience, the future of media, sports betting, esports and gaming and more:
- Local Sports Network - Houston, TX
- Playbook Five - Los Angeles, CA
- 3VVV Inc. - Houston, TX
- Cardii.io - Austin, TX
- JSleeve - Houston, TX
- XR Sports Group - Dallas, TX
- Screen Skinz - College Station, TX
- Brave Virtual Worlds - Austin, TX
- Trainr. - McKinney, TX
- Top Prospect - New Orleans, LA
During the 12-week program, startups will work alongside DivInc's network of experts to establish a playbook for growth. Companies will spend time refining their revenue models and pricing, working through letters of intent and memorandums of understanding, establishing a sales strategy and a hiring process and connecting with potential investors.
Connor Glick, senior manager of business intelligence and analytics for the Houston Dynamo FC, said an organization like the Houston Dynamo FC sees a lot of value in partnering with a program like the 5G Sports Tech Accelerator. It's a way to give back to the local community, but it's also an opportunity for the Dynamo to work closely with early-stage companies and tailor new ideas to the club's specific business goals.
"Hopefully we do get a partnership or two coming from this pipeline because no one is going to know our problems more than the people we talk to on a daily basis," Glick said.
In line with the nonprofit accelerator's core mission, the new DivInc Houston program is a good way to demonstrate that working in a sports technology company is a viable career path for people of color and women, McMahon said.
"We might not all be able to play on the field, but there are all these organizations that need people helping them solve problems," McMahon said. "That's another avenue to a professional career in sports that I don't think a lot of us think about."
The spring 2022 5G Sports Tech Accelerator is also supported by JPMorgan Chase & Co., Mercury Fund, The Ion and Intel. HTX Sports Tech, The Cannon Sports & Media, Sports Innovation Texas and Women in Sports Tech are serving as programming partners.
It's difficult for many startups to raise money and grow, but it might be even more difficult for startups in sports technology, said Dustin McMahon, co-founder and CEO of Local Sports Network.
Not only does it take financial resources to scale up, it also takes strong, personal relationships with sports teams willing to work with a startup. And sports teams — high school sports, collegiate sports and all the way up to the pros — can be a tight-knit and risk-averse bunch, he said.
"In other industries, folks are more willing to be first and take that risk, but in sports, everybody wants to be second, third, fourth or fifth," McMahon said. "They want proven models before they're willing to work with you as a founder."
At the same time, the Covid-19 pandemic changed everything for sports teams, Glick said. Teams are looking for new ways to drive better fan engagement, sell more tickets and products and ultimately, boost revenue streams.
But the Houston Dynamo or Dash aren't just going to pilot any tech app or other kind of offering at PNC Stadium. Teams need a proof of concept and a demonstrated use case for a product or service, Glick said.
"It all comes down to experience," Glick said. "If it doesn't make their game day experience easier and more enjoyable for them, then what was the point of bringing it on?"
