The launch of the fund follows increased VC money flowing into the sports and entertainment sectors.
The tennis governing body in Australia, Tennis Australia, has completed the first close of a $30m venture capital fund, as it seeks to back startups innovating in sport, entertainment, media and health.
Its corporate venture unit, AO Ventures, is opening 75% of its fund to private and strategic investors. It says it expects the final close of the fund after the end of this year’s Australian Open, which finishes in late January.
New investment money has recently poured into sports and entertainment as the sector experiences strong expansion globally. PwC projects the global market will reach $680bn by 2028.
Earlier this month, Scrum Ventures, a US and Japanese venture capital firm, closed a $68m fund that will invest in sports and entertainment tech startups.
The game is changing in sports investment — three trends to watch
Consumption of sports is more fragmented and athlete-centric. This opens up some opportunities for startups and investors.
Tennis Australia hosts the Australian Open Grand Slam tennis tournament and owns a media business that broadcasts the championship.
AO Ventures invests between $300,000 and $1.5m in startups at the seed stage through to series A, with additional capital for follow-on funding rounds.
It focuses on technologies that have applications in its business, including sports and entertainment events, mass participation sport and fitness. Its focus also extends beyond tennis tech companies to include other sports.
The CVC also runs a pilot programme, AO Startups, that tests technologies in its business before it invests.
