Masterclass – Lessons From Great Unicorn Sports Investments

Sports are often viewed through the lens of entertainment and media — the big game, the championship moments, and drama on and off the field that capture attention. But beneath the surface lies something just as compelling: innovation and the staggering financial returns hidden within the sports ecosystem.

Every year, billions of eyeballs are glued to sports, whether it’s the Super Bowl, the World Cup, or even a viral TikTok highlight. Behind every moment are products and services built to serve these fans — gear they wear, platforms they engage with, data they analyze, and, increasingly, the bets they place. Massive investments fuel these experiences, and when they click, the returns can be game-changing.

In this blog, we’ll explore the fascinating world of sports investments and break it into key segments to map out the biggest opportunities. We’ll spotlight some of the most iconic investments that have already delivered blockbuster returns, from franchise sales to venture-backed sports tech startups. And we’ll share a glimpse of potential future winners still on the rise — a roadmap to the sectors worth watching.

From fantasy sports and wearables to emerging leagues and next-gen viewing experiences, this is your front-row seat to the investing playbook driving the future of sports – a playbook that Alumni Ventures (AV) is committed to pursuing. Through AV’s Sports Fund, investors have an opportunity to tap into this dynamic sports market and gain exposure to cutting-edge companies redefining an industry many of us have loved since childhood.

Let’s dive in.

Franchise Ownership: The Long Play

Franchise ownership has long been one of the most iconic plays in sports investing. Visionaries like Jerry Jones and Mark Cuban turned undervalued teams into billion-dollar assets. Jones bought the Dallas Cowboys for $140 million in 1989 — the franchise is now worth $10 billion (~71x over 35 years). Cuban acquired the Dallas Mavericks for $285 million in 2000 and sold his 73% stake for $3.5 billion in 2023 (~12x). These legendary returns are now part of sports business lore.

But today, a new kind of franchise investment is emerging — one that blends community, storytelling, and global media reach.

Take Ryan Reynolds and Rob McElhenney’s 2020 purchase of Wrexham AFC, a fifth-tier Welsh football club, for just £2 million (about $2.5 million). This wasn’t a traditional bet on a marquee team. Wrexham was a struggling club with a fiercely loyal but local fanbase. What Reynolds and McElhenney saw wasn’t just a team — it was a story waiting to be told.

Through the FX and Disney+ series Welcome to Wrexham, they turned the club’s underdog journey into global entertainment. The show didn’t just introduce viewers to Wrexham; it made stars of its players, fans, and the town itself, transforming the team into an international brand. The wave of attention brought new fans, booming merchandise sales, and major ­sponsors like TikTok and Expedia.

Off the field, Reynolds and McElhenney invested in infrastructure, recruitment, and operations. Their efforts paid off. In 2023, Wrexham earned promotion to the English Football League’s League Two — unlocking new revenue streams and boosted the team’s value. Analysts now estimate the club is worth 4x its original purchase price, just a few years after the deal.

The Wrexham story shows how franchise ownership is evolving. Success today isn’t just about winning games — it’s about building a narrative, rallying a community, and leveraging media to amplify a team’s reach. It’s the new playbook for modern ownership, and proof that even the smallest clubs can become global phenomena.

Sports Betting Ecosystem: Rivalry That Fueled a Revolution

Sports betting has evolved from a niche pastime into a mainstream industry — thanks in large part to DraftKings and FanDuel. These two companies didn’t just compete; they built an entire category together, much like Uber and Lyft did for ridesharing.

Both launched in the early 2010s, using daily fantasy sports (DFS) as a legal workaround to traditional betting restrictions. By allowing players compete for cash based on real-game performance, they tapped into the growing popularity of fantasy sports. Backed by aggressive, nine-figure marketing campaigns, they propelled DFS into the mainstream and introduced millions to the world of real-money gaming.

The game-changing moment came in 2018, when the U.S. Supreme Court struck down the federal ban on state-regulated sports betting — clearing the way for the industry to go mainstream. DraftKings and FanDuel moved quickly, leveraging their massive DFS user bases to launch sportsbooks. They quickly formed partnerships with leagues, teams, and media networks, transforming what was once a gray-market activity into a widely accepted and thriving part of sports culture.

DraftKings’ investor story is equally compelling. Early backers like Accomplice VC entered at the seed stage in 2012, with Major League Baseball joining at the Series A — a groundbreaking move for a pro sports league — at a $17 million post-money valuation. As momentum grew, GGV Capital and Redpoint Ventures invested at Series B ($61 million post-money), and by Series D, DraftKings welcomed heavyweights like DST Global, FirstMark, the NHL, and MLS at a $1.2 billion valuation. The company’s 2020 SPAC debut at a $7 billion valuation rewarded investors with significant returns across the board.

FanDuel followed a similar trajectory. Early growth was fueled by strategic investors, but its 2014 Series E round brought in top VCs like GV (Google Ventures) and Tusk Venture Partners at a $1 billion valuation. As DFS exploded, these investors saw strong returns through secondary sales, with FanDuel reaching an $11 billion valuation.

Today, DraftKings boasts a ~$19 billion market cap, while FanDuel powers Flutter Entertainment’s ~$47 billion valuation. Together, they dominate the U.S. sports betting landscape, with challengers like BetMGM and Caesars working to keep pace.

The rise of DraftKings and FanDuel is a masterclass in how competition can drive an entire industry forward. By growing the ecosystem together, they transformed a once-fringe idea into a cultural and economic force — and set the foundation for the booming sports betting market we see today.

The Wearables Revolution: How Technology Is Enhancing Performance

Wearables have redefined how we think about health and performance. What began as simple step counters has evolved into powerful, data-driven tools that optimize recovery, readiness, and overall health. Today, both professional athletes and everyday users rely on wearables to enhance their physical and mental performance.

A standout in this space is Oura, an Alumni Ventures portfolio company. Founded in 2013, Oura introduced the Oura Ring, a sleek, minimalist device that tracks key biometrics like heart rate variability, body temperature, and sleep quality. With a focus on recovery and wellness — particularly sleep — Oura has become essential for athletes, including NBA players managing grueling schedules.

Oura’s breakthrough came in 2020, when it partnered with the NBA to monitor player health inside the Orlando bubble. The ring’s ability to detect subtle changes in body temperature provided an early-warning system for illness, showing the potential of wearables beyond fitness. Innovation has continued with Oura’s Gen 3 Ring, which added advanced sensors and features like period prediction to support women’s health.

This evolution reflects a broader trend: people want wearables that provide actionable insights, not just data. Now valued at $2.5 billion, Oura exemplifies how technology is reshaping wellness, empowering users to make meaningful changes in how they recover, perform, and live.

Alumni Ventures is leaning into this space, recognizing the immense opportunity personalized health technologies. Another of our portfolio companies, Epicore Biosystems, is making waves with sweat-based biosensing technology that provides real-time hydration and metabolic data. Epicore’s Gx Sweat Patch, developed with PepsiCo, has shipped 1.5 million units and is on track to generate $12 million in revenue by the end of 2024. With proprietary microfluidic technology, Epicore helps athletes and industrial workers optimize hydration and recovery—turning sweat into valuable performance insights.

As wearables continue to push the boundaries of personalized health, companies like Oura and Epicore are proving that data-driven insights can unlock new levels of performance and well-being. With adoption growing across sports and everyday life, the future of wearables promises even greater innovation — and investment opportunity.

Emerging Leagues: Investing in the Future of Sports

While traditional sports leagues dominate the headlines, the next wave of opportunities are accelerating in tandem. Leading the change is pickleball, the fastest-growing sport in the U.S., capturing the attention of players, fans, and investors alike.

A blend of tennis, badminton, and ping-pong, pickleball has grown from a backyard game to a nationwide phenomenon, with 36+ million players in 2023. Accessibility is its superpower: the game is easy to learn, inexpensive to play, and appeals to all ages and skill levels. This inclusivity has fueled its rise from a pastime to a competitive sport with professional leagues and lucrative opportunities.

At the heart of pickleball’s professional rise is Major League Pickleball. MLP has capitalized on pickleball’s popularity through high-energy tournaments, growing fan attendance, and major sponsorship deals. With its team-based format designed to emphasize fun and accessibility, MLP is building a new kind of community-driven sports experience.

Early owners and investors include LeBron James, Tom Brady, Leonardo DiCaprio, and Bill Gates. MLP teams have been acquired for as low as $100,000, with valuations soaring to around $10 million by 2023 — a remarkable 100x increase. Thirty Five Ventures, co-founded by NBA star Kevin Durant, purchased an expansion franchise for $1 million, which was later valued in the eight-figure range, underscoring the financial upside of this fast-growing sport.

The future of emerging sports is about identifying where culture, community, and innovation collide. The next big opportunity in sports may already be here — and more accessible than ever.

Viewing Experiences: Bridging the Gap Between AR/VR and Reality

Sports viewing is entering a new era of immersion. While AR/VR headsets have long been touted as the future of viewing experiences, widespread adoption has been slow. But innovations like Cosm are now reinventing what’s possible when technology and sports merge.

Cosm’s first location in Dallas offers a shared reality experience, where fans watch games on massive, curved screens that replicate the scale and energy of a live event. The result blurs the line between being in the stadium and watching from afar, by surrounding fans with sights and sounds of the action — whether it’s a football game or Formula 1 race. Attendees describe it as the next best thing to being there.

The concept is catching on. With new locations planned for Los Angeles, Detroit, and Atlanta, Cosm is demonstrating that sports fans crave a shared experience, and technology that amplifies such connections has a built-in advantage.

What makes Cosm especially compelling is how it bridges the gap to AR/VR adoption. For headset-based experiences to reach the mainstream, fans first need to believe that such immersion is possible. Cosm delivers that proof point, offering a visceral taste of what it’s like to feel “in the game.” Once fans experience that at scale, the leap to personalized, in-home immersion at home becomes far more intuitive.

Cosm’s rapid growth underscores the potential for destination viewing experiences to reshape sports fandom. By blending cutting-edge tech with the communal energy of live events, these venues are laying the foundation of how immersive viewing can scale. If AR/VR is the future of sports, Cosm may just be the gateway to get us there.

The Engine Powering the Sports Data Revolution

Sports have always been about numbers, but in the past two decades, data has become the lifeblood of the ecosystem. Today, it powers decisions across coaching, broadcasting, and betting. At the heart of this transformation is Sportradar — a company that has become indispensable to the global sports industry and a standout investment story.

Founded in Switzerland in 2001, Sportradar set out to collect, process, and distribute sports data faster and more accurately than ever. What started as a niche operation now fuels leagues like the NFL, NBA, and FIFA, capturing every play, pass, and goal in real time. This data powers critical decisions for teams, broadcasters, and sportsbooks worldwide.

Sportradar’s inpact is especially visible in sports betting, which exploded after the 2018 Supreme Court decision legalizing wagering in the U.S. Through its Betradar division, Sportradar delivers live odds and in-game betting for platforms like DraftKings. Its technology enables everything from point spreads to micro-bets, creating a more dynamic — and profitable — sports experience.

But Sportradar’s influence goes far beyond betting. Teams use its analytics for strategy. Broadcasters enhance fan engagement through real-time visualizations. Leagues rely on its integrity services to monitor betting and detect fraud. Behind the scenes, Sportradar is quietly shaping how the modern sports world operates.

As an investment, Sportradar demonstrates the growing value of data in sports. After securing major private backing from firms like TCV, it went public in 2021 with an $8 billion valuation. While its current market cap (~$6 billion) reflects broader tech trends, Sportradar’s dominance in sports betting and analytics makes it a cornerstone of the rapidly expanding sports data market. And although early-stage valuations remain undisclosed, investors like Michael Jordan, Mark Cuban, and AOL founder Steve Case’s Revolution fund likely saw stellar returns from their 2015 entry.

Sportradar’s story is a glimpse into the future of sports. Behind every buzzer-beater or game-winning touchdown are billions of data points driving engagement and revenue. For investors, Sportradar isn’t just keeping score — it’s rewriting the entire playbook.

Personalized Nutrition and Training: The Future of Performance Optimization

As health and performance become increasingly data-driven, personalized nutrition and training are emerging as major investment opportunities in the sports and wellness space. Athletes and fitness enthusiasts are moving beyond one-size-fits-all solutions, seeking programs tailored to their unique biology, lifestyle, and goals.

A leader in this movement is Zoe, valued at $270 million following investments from top VCs like Coefficient Capital and L Catterton, along with high-profile athletes like Eli Manning. Zoe combines cutting-edge science with accessible technology to help users optimize their health through personalized nutrition.

Zoe’s approach centers on deep insights from gut microbiome analysis, blood sugar response tracking, and individual dietary patterns. Powered by AI, the platform delivers actionable recommendations, helping users make smarter food choices aligned to their personal health goals. With strong investor backing and celebrity endorsements, Zoe is at the forefront of the precision nutrition revolution — showing how data can empower individuals to take control of their well-being.

As demand for personalized performance solutions accelerates, companies like Zoe are proving that the future of health lies at the intersection of science, technology, and individualized care. And as the sector continues to grow, AV is helping lead the charge — backing innovations that redefine how we fuel, train, and recover.

The Golden Age for Sports Innovation

The world of sports investment is as dynamic as the games themselves, offering opportunities that span data, technology, and innovation. As we’ve shown, sports have become a proving ground for transformative ideas — reshaping how we engage with, experience, and monetize the games we love.

This is also an opportunity for investors. Through the AV Sports Fund, investors can gain access a diversified portfolio of 15-20 innovative sports and gaming companies, spanning many of the high-growth sectors we’ve highlighted. Leveraging AV’s deep network and expertise, we assemble a portfolio that offers exposure to emerging trends and technologies driving the future of sports.

As these trends continue to evolve, one thing is clear: sports are no longer confined to the field or the arena. They’ve become platforms for storytelling, community-building, and cutting-edge innovation. Whether you’re a fan, a founder, or an investor, the takeaway is the same — this is the golden age for sports innovation.

This communication is from Alumni Ventures, a for-profit venture capital company that is not affiliated with or endorsed by any school. It is not personalized advice, and AV only provides advice to its client funds. This communication is neither an offer to sell, nor a solicitation of an offer to purchase, any security. Such offers are made only pursuant to the formal offering documents for the fund(s) concerned, and describe significant risks and other material information that should be carefully considered before investing. For additional information, please see here. Example portfolio companies are provided for illustrative purposes only and are not necessarily indicative of any AV fund or the outcomes experienced by any investor. Example portfolio companies shown are not available to future investors, except potentially in the case of follow-on investments. Venture capital investing involves substantial risk, including risk of loss of all capital invested. This communication includes forward-looking statements, generally consisting of any statement pertaining to any issue other than historical fact, including without limitation predictions, financial projections, the anticipated results of the execution of any plan or strategy, the expectation or belief of the speaker, or other events or circumstances to exist in the future. Forward-looking statements are not representations of actual fact, depend on certain assumptions that may not be realized, and are not guaranteed to occur. Any forward-looking statements included in this communication speak only as of the date of the communication. AV and its affiliates disclaim any obligation to update, amend, or alter such forward-looking statements, whether due to subsequent events, new information, or otherwise.