XV Capital, along with partner Stadia Ventures, has launched a new focus it calls Innovation as a Service (IaaS), designed to support the vitally important but under-resourced sports sector to a more sustainable future through innovation, particularly sports technology.
XV was founded by former Wallabies captain, Stirling Mortlock along with James Godfrey in 2021 (Rob Smith joining in 2023) and now offers three core services: Innovate to sports organisations, Accelerate to sport-tech companies and Invest, a funds management offering deploying growth capital into sport-tech companies
Godfrey said, "The APAC region is our core target.”
"We'd been looking at technology in terms of how it could transform rugby union in North America as part of a broader investment fund that Stirling and I were working on pre-XV.”
“We identified that technology can have a far greater impact because of its scalability than pretty much any other lever inside of sport. This thesis was the genesis of XV"
Fellow-partner Smith added, "We are a later-stage investment business. The businesses in the accelerator program are not start-ups; they're scale-ups, often international businesses looking to enter the APAC marketplace."
The accelerator program focuses on deep active analysis of sports technology businesses before making investment decisions. This approach allows for a thorough understanding of their market potential and impact.
"We realised that unless you're in the market with the founders of those sports technology businesses – seeing them under pressure, seeing how clients are responding, ensuring the tech does what it says on the label, you don't get a full understanding," Smith noted.
Godfrey cites the example of Sportable, a business in their program that gained significant traction after demonstrating the need for its ball chip technology during last year’s AFL finals.
The IaaS model assists sports organisations in adopting appropriate, tested, cost effective, technology solutions.
Smith underscored the necessity of this shift, and said, "Sports need to become more efficient, own their data, and use it effectively, and become less reliant on broadcaster and public funding. The right technology can free up resources for other purposes and ultimately make sport more sustainable."
“Our role is to change the perception of technology in sports from a cost to an essential investment that can enhance efficiency, reach, revenue diversification and fan engagement.”
XV recently partnered with US-based, Stadia Ventures to deliver IaaS which will bring a track record and wealth of experience and network connections to the Australian market.
The partnership will address the financial and resource constraints that many sports organisations face, offering tailored innovation strategies, solutions and execution support.
Godfrey said that the innovation journey is often hampered by risk aversion in sports organisations and resource limitations. This can be mitigated, providing a clear pathway for innovation.
"We're trying to create a relationship of trust. We want to give sport confidence, and we want to use the knowledge that we generate through this program to go out and talk to the best in class technologies, both local and international, that can add value to sporting organisations in Australasia and APAC by solving problems and enhancing opportunities.”
XV’s investment strategy has evolved to include a diversified portfolio model, with plans to establishing a runway of sports-tech investment funds to support the sector and capitalise on significant tailwinds in the region. This is intended to attract broader institutional and retail investors, providing them with exposure to the sports industry.
The firm is committed to investing across the spectrum of sports technologies, from community to elite level.
Smith said, "We see the growing value and the improving application of sports tech to servicing the grassroots because if you get that right, then the pipeline of players and fans coming through is made much easier."
Despite the promising outlook, Smith acknowledged the challenges ahead.
"The reality is these sports have got to do something. They can't continue to rely on broadcast and government money to survive."
“Our business aims to help sports organisations navigate these challenges by offering innovative solutions that drive sustainability and growth, adding rather than extracting value”, Smith concluded.
