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“What Do You Believe That Nobody Else Does?” – Why Sport Is the Next Venture Capital Platform
- Sport is predicted to become the launching platform for future companies, with sponsorships transitioning to equity and sport evolving into a capital source.
- Media-for-equity, a funding model gaining momentum, involves media companies exchanging advertising slots for startup equity.
- Startup costs are decreasing, but customer acquisition costs are rising, prompting startups to seek distribution partnerships.
- The author suggests that a similar media-for-equity concept could be applied to the sports industry.
- The proposal envisions startups offering equity to sports clubs in exchange for branding, endorsements, and content collaborations.
- The global sports sponsorship market is valued at $71 billion, presenting a significant opportunity for innovation and investment.
- The integration of sports and venture capital could create a new asset class and foster partnerships in various sectors.
- Potential models include venture lenders for clubs, sport-equity funds, sponsorship brokers, athlete influencer deals, data platforms, and consultancy services.
- Sport's unique characteristics make it an ideal platform for launching and growing companies in today's attention economy.
- The author believes that sport will play a key role in the future of venture capital and anticipates the rise of the 'sport-for-equity' model.
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