Morrisville startup PlayMetrics has a new partner with ties to a big name in the National Football League.
Blue Star Innovation Partners, backed by Dallas Cowboys owner Jerry Jones, has taken what’s being described as a “significant ownership position” in the company, which develops software for youth sports.
PlayMetrics CEO Mike Doernberg declined to define “significant," but confirmed it was in the millions. Doernberg continues to have a position in the firm, as does the management team – which is staying intact – and some key investors.
But for some, it means an exit – including the Triangle Tweener Fund, Scot Wingo's investment startup that invested in PlayMetrics last year. The Tweener Fund's position was among those bought out in the deal – making PlayMetrics the first exit in its fast-growing portfolio.
“I can’t go into specifics, but we’re really pleased to have an exit so fast, and it was definitely a great return for us,” Wingo said.
Durham-based Bull City Venture Partners, which initially invested in the founding team through Southern Capitol Ventures, also had a full exit with the deal. Bull City co-founder Jason Caplain called the market "absolutely frozen," adding that the fact that the transaction occurred shows what a "strong company" the founding team built.
Doernberg said it was an opportunistic deal.
“The opportunity was such that we felt getting a financial partner like a Blue Star was going to be important for us to be able to execute and accelerate strategy,” he said, noting the move is about the partnership as much as it is the investment. “It’s also about the ability to move quickly if we find opportunities for acquisitions.”
PlayMetrics offers an operating system for youth sports aimed at helping streamline and modernize daily operations. The company, which raised $5.3 million last year, had a sizable runway even before the equity infusion, Doernberg said. Blue Star just helps it execute quicker, and brings with it industry expertise, particularly in payments.
“Blue Star also has a very, very keen understanding of our particular space,” he said.
Rob Wechsler, Blue Star’s founder and president, not only built and exited two payments businesses – Century Payment Advisors and Century Payments – he founded sports technology firm Blue Star Sports, which counts firms such as Neon One and LegitScript in its portfolio.
Jerry Jones is listed as a founding partner of Blue Star.
In a press release, Blue Star CEO Dan Wechsler said the firm, which is based in Texas and typically makes majority investments, is made up of “huge believers in the youth sports space” and had been looking for a platform like PlayMetrics. “When we spoke to their customers, it was clear their experience with PlayMetrics supported our view – that PlayMetrics is on its way to becoming the definitive brand in youth sports technology,” he stated.
The PlayMetrics founding team has worked together on multiple startups, including Reverbnation, which was acquired by Singapore-based BandLab, and Adwerx, which spun out in 2015.
