Episode #74: Meet the Startup Putting Data in the Hands of Every Basketball Player

Frequently Asked Questions

FAQ

• Where is the transcript for this webinar?

  Samantha Herrick:
  This is a podcast brought to you by the folks from Alumni Ventures. This is the Tech Optimist podcast, a show where we talk to the innovators shaping tomorrow.

  Erik Anderson:
  I think for basketball, the hardware aspect that we’ve gone for is to not change the game of basketball at all.

  Samantha Herrick:
  That is Erik Anderson, CEO of SIQ Basketball.

  Erik Anderson:
  You spin the ball, you connect to your app, you can have real-time feedback, or you can go train and have a full session at the end of your run.

  Keaton Nankivil:
  I love it. And the ability to get really personalized feedback is a thing that is relatively new at the scale that it’s entering the market.

  Samantha Herrick:
  And that is Keaton Nankivil, senior principal at Alumni Ventures. The SIQ Basketball contains a patented—ready for this—9D sensor embedded inside and does not affect the weight or flight of the ball.

  And that’s me. My name is Samantha Herrick and I’m the guide or host for this podcast.

  All right, let’s get into our Meet the Startup today with SIQ Basketball. SIQ Basketball is an innovative startup that has developed a smart basketball designed to help players improve their shooting skills through advanced technology and real-time analytics.

  The basketball is an FIBA-approved smart basketball that looks and feels like a regular basketball but contains advanced technology to track shooting performance. SIQ was founded by Harri Hohteri, a former Finnish professional basketball player. The company has gained recognition in the basketball world with endorsements from professional players like Duncan Robinson of the Miami Heat and Kayla McBride of the Minnesota Lynx.

  Impact and Recognition:

  • With FIBA approval, the SIQ Basketball is the world’s only FIBA-approved smart basketball, ensuring it meets regulation standards for weight and size.

  • Users have reported 15% to 25% improvement in just weeks of using the basketball.

  • As of September 2021, SIQ had tracked more than 2 million shots from players around the world.

  SIQ Basketball aims to make advanced shooting analytics accessible to players at all levels—from professionals to youth and amateur players—potentially revolutionizing how basketball players train and improve their shooting skills.

  We’re going to get into the nitty-gritty about the technology a little bit later, but here’s a quick sneak peek: there’s a patented 9D sensor embedded inside the ball that tracks over 190 data points for every shot taken. There’s automatic shot detection, and real-time feedback with detailed analytics is sent to a smartphone app that comes with the basketball.

  It tracks a wide range of shooting metrics: makes, misses, swishes, shot consistency, shot distance, hotspots on the court—all the fun stuff. We’ll get into that in more detail later in the episode. The ball’s technology is 99.9% accurate in tracking these stats, providing players with precise data for improvement.

  All right, it’s about time for me to turn my microphone off. Here’s an ad, and then we’ll hop right into the show.

  Keaton Nankivil:
  Hey everyone, taking a quick timeout so I can tell you about the Sports Fund from Alumni Ventures. AV is one of the only VC firms focused on making venture capital accessible to individual investors like you. In fact, AV is one of the most active and highly rated VCs in the U.S., and we co-invest alongside renowned lead investors.

  With our Sports Fund, you’ll have the opportunity to invest in a portfolio built around tech and business advancements across the sports world—from personal wellness to sports media to team ownership. This fund is focused on companies that have the potential to tap into the massive global sports market, which is expected to exceed $250 billion by 2030.

  To get started, visit av.vc/funds/sports. Enjoy the rest of the show.

  Samantha Herrick:
  As a reminder, the Tech Optimist podcast is for informational purposes only. It’s not personalized advice and it’s not an offer to buy or sell securities. For additional important details, please see the text description accompanying this episode.

  Keaton Nankivil:
  Awesome. So I’m here with Erik Anderson of SIQ Basketball, a recent investment from the AV Sports Fund. For those seeing my face for the first time, I’m a former basketball player.

  I remember first connecting with Erik and saying that the big holiday gift when I was a kid was the Soccer Pal, which was basically a soccer ball in a net on the end of a rope you could kick to yourself. If I put myself in the shoes of a young kid now, it would be SIQ Basketball.

  Erik, can you give us the elevator pitch for your company?

  Erik Anderson:
  Yeah, certainly. Thanks, Keaton. SIQ Basketball is a smart basketball and app that helps basketball players of all ages and skill levels improve their game through technology, gamification, coaching, and simple tracking of metrics during practice.

  Keaton Nankivil:
  Can you tell us a little bit about your origin story? I think it’s a unique story about how you came to the company and why you decided to be part of it.

  Erik Anderson:
  From my perspective, it was a no-brainer. I came from the venture world and invested in the pre-seed round. I was living in Estonia at the time, investing in the Nordics, and came across a Finnish founder who was six foot eight—a professional basketball player and computer scientist. I called him the Finnish unicorn and thought, We have to invest in this smart basketball company.

  I grew up playing basketball. I tried the product—it was unbelievable. You spin, connect to your phone, start shooting, and it tracks makes, misses, release angle, distance—90% to 95% of what professional analytics systems track but at a consumer price point.

  Not only that, there were multiple patents on the technology. I thought, This is an amazing opportunity. Unfortunately, in Finland, basketball isn’t the most popular sport. If it were hockey, they would’ve had no problem raising a ton of money.

  But I was adamant about doing the deal. We did it—it was the last meeting in person before COVID. Imagine investing in consumer hardware technology manufactured in Asia, with a tech team in Finland, and launching in America during that time—it was tough.

  But because of my position on the board and my passion for the business, they asked me to join as CEO. It was a no-brainer for me—a great opportunity to work with a company I absolutely love. Almost four years later, here we are, entering the next chapter.

  Keaton Nankivil:
  That’s super cool. I want to talk about market trends. In an age where AI has become dominant, it might seem counterintuitive to go into hardware. Why do you think this is such an amazing path forward—to put the smart sensor in the hardware?

  Erik Anderson:
  Yeah, we have very lightweight hardware that goes inside the basketball. It keeps the ball official size and weight.

  It’s easy to build something where you set a phone on a tripod and track shots. Those are great solutions—I don’t want to say anything negative about them. There are amazing applications for that.

  But for basketball, the hardware approach we’ve taken doesn’t change the game at all. You spin the ball, connect to your app, and you can get real-time feedback or train and have a full session summary afterward.

  That experience is what separates us from anyone else. We’re a comprehensive analytics and gamification platform that works on any court in the world.

  Samantha Herrick:
  All right, so when I think about a smart basketball, I just cannot fathom how it works. I’m not an engineer, computer scientist, or sports scientist. So, I did some research on how this basketball actually works and what the technology is.

  So of course, the SIQ Basketball is a smart basketball that uses advanced technology to track and analyze shooting performance. The SIQ Basketball contains a patented—ready for this—9D sensor embedded inside and does not affect the weight or flight of the ball. The sensor tracks about 190 data points for every shot taken. The ball uses machine learning technology—this is where the AI comes in—to automatically detect and classify shots. It can identify different types of shots like catch and shoot, off the dribble, or free throws. The ball analyzes the interaction between itself and the hoop to determine makes, misses, and even swishes.

  Basketball tracks a wide range of shooting metrics. Erik kind of talked about this a little bit earlier, but the shooting metrics it tracks include makes, misses, swishes, release angle, release time, spin rate, shot consistency, shot distance and location, and hotspots on the court.

  As far as the usage process: you download the SIQ app on your smartphone, you log in with your details, you spin the ball to activate it, and then you start shooting on a regulation hoop while placing your phone within 90 feet of where you’re shooting. The ball automatically sends data to the app, which provides real-time feedback and detailed analytics on your shooting performance.

  There are some really advanced features it can do as well, like shooter identification. The ball can recognize different shooters based on their unique shot fingerprint after taking about 500 different shots.

  It also does situation analysis—it classifies shots taken off the pass, dribble, or in a relaxed situation. It has heat maps to show accuracy from different court locations. By combining the smart basketball with the app, players can get professional-level shooting analytics and feedback to improve their game without the need for additional equipment or expensive setups.

  Erik and SIQ Basketball have partnered with Spalding—they’re going to talk about that a little bit later. But there’s a really cool short I found on their YouTube page where they put a legendary free throw shooter against the app to see how many shots it takes him to get three perfect makes. That’s part of the app classification feature. I’m going to play that now because I think it’s really fun and it really helps exemplify how you actually use the technology. Here’s a quick short from Spalding—it’s like 90 seconds—and then we’ll get right back into the interview.

  Speaker 4:
  What’s up, guys? I’m here with Gabe McGlothan, Division One basketball player and free throw shooter extraordinaire. We’re going to see how many shots it’s going to take him to get three perfect makes. On the app, a perfect make means that all of the release angle, the shot trajectory, the release speed, the rotation—everything—is perfect. Then you’re going to get swishes and feedback that’ll either say “perfect make” or “perfect” or something like that. So let’s see how many times it takes Gabe to get three perfect makes. Money.

  Speaker 6:
  Perfect.

  Speaker 4:
  Hit the rim a little.

  Speaker 6:
  Simply perfect.

  Speaker 4:
  Last one, baby.

  Speaker 6:
  Perfect make.

  Speaker 4:
  Got it. Took my man Gabe six shots to get three perfect marks. How many will it take you?

  Keaton Nankivil:
  Yeah, I love it. The ability to get really personalized feedback is something relatively new at the scale it’s entering the market. What can you share about the interaction between your ball and the app experience—especially if I think about putting myself in the shoes of a young player, maybe middle school or early high school age?

  Erik Anderson:
  Yeah, no, that’s a great perspective question. We built the product originally for elite basketball players—top-tier players who want to improve their game—and that’s where the technology started. But we realized, based on a few different things, that we actually have a real market opportunity for kids who are picking up a basketball for the very first time.

  By simplifying the user experience, we’re giving you the same data but with a better, more straightforward interface. By focusing on someone who’s starting from Day Zero versus someone who already has their favorite basketball or is required to play with a specific one, it creates a much better market opportunity for us and helps us design a better user experience.

  So whether you’re a kid picking up a basketball for the first time or a seasoned veteran, we’ll give you data based on your shot. You start shooting and we’ll tell you: “Hey, there’s an optimal release angle based on your height and distance—this is how you can improve.” Then, based on your skill level, we can provide personalized training: drills to increase distance, release speed, shot arc, and more. We have plenty of data to back our suggestions because we know optimal entry angles, which is something no one’s been able to do before.

  Keaton Nankivil:
  Yeah, that’s super cool. And it’s groundbreaking. There are players who are very intuitive and just get it, and there are players who are more analytical. I think this approach has something to offer everyone. If you’re someone who just wants to count makes and misses while shooting a two-handed Reggie Miller jump shot, you’ll still get great data out of this.

  Tell us something unusual about your company.

  Erik Anderson:
  Oh, there are many unusual things.

  Keaton Nankivil:
  Tell us a couple.

  Erik Anderson:
  One that comes right to mind is our usage patterns. Basketball is a seasonal sport, and since our primary users are kids who are in school and playing multiple sports, something surprising we learned is that basketball season is actually our lowest usage time of the year. Kids are practicing during the season, then going home to do homework, so they’re not getting up as many shots on their own. Off-season, our usage jumps way up.

  Another unusual thing is that we’re creating something that’s never been done before. A consumer smart ball is a relatively new idea. So, figuring out the business model and how to educate the consumer has been an amazing challenge.

  For example, when we first launched, we sold a $99 basketball and assumed people would download the app separately. But we made a lot of people angry because they bought a $99 basketball and then had to buy an app on top of that.

  By educating consumers and bundling the app with the physical product, our activation rate increased significantly. Customer education is now implied and completed at the point of sale. So, understanding consumer behavior is one of the unusual but key parts of building this company. As we prepare for the next phase, I feel we’ve figured out quite a bit of that.

  Keaton Nankivil:
  So let’s talk about recent momentum or wins. Do you have any you can share on that front? Especially as you think about continuing to really get into the market.

  Erik Anderson:
  I think by the time we air this interview, we’ll have announced that SIQ has a license agreement with Spalding. We’re going to be launching a Spalding Smart Basketball this holiday season in Q4. I think the press release goes out in about a week, so we’re really excited for that.

  We’ve totally redone the app and added new features. This is the first ball we’re launching with Spalding, and there’s a line of other basketball products we’re actively considering. Nothing finalized yet, but this first product is an all-surface indoor/outdoor ball, all black, which mimics our SIQ-branded bestseller but uses slightly higher-quality materials.

  The app itself will feature coaching from elite NBA trainers who work with some of the biggest stars in the NBA. We’ll have weekly video drops, global competitions in the app with huge prizes, and general challenges and leaderboards. We’ve taken the next step in product development.

  We’ve been simultaneously developing the Spalding app while continuing SIQ app work, and when it all comes together, we’re really excited for what’s going to be released within the next month.

  Keaton Nankivil:
  What does working with a company like Spalding enable for you guys? I think in the hardware space, ramping up production is a challenge. What does Spalding—or any similar partner—enable in terms of scale?

  Samantha Herrick:
  Before we hop into this, we’re going to take a second for an ad. I promise it’s 30 seconds, we’ll be right back.

  Speaker 5:
  Do you have a venture capital portfolio of cutting-edge startups? Without one, you could be missing out on enormous value creation and a more diversified personal portfolio. Alumni Ventures, ranked a top-20 VC firm by CB Insights, is the leading VC firm for individual investors. Believe in investing in innovation? Visit AV.VC/foundation to get started.

  Erik Anderson:
  Working with Spalding is an unbelievable opportunity for us as a technology business. We can now focus on our core competency—technology—while putting that technology into an industry-leading brand everyone knows and trusts.

  Spalding knows how to sell, market, and distribute the product. They unlock manufacturing and supply chain capabilities that would be challenging for us to do alone. For us, it’s a win-win: we focus on tech, they focus on selling, and we collaborate. It’s an incredible opportunity for us as a technology company.

  Keaton Nankivil:
  For any fellow basketball nerds out there, I think you quoted me a number during diligence: what percentage of state basketball associations use a TF1000 as their basketball?

  Erik Anderson:
  The last time I heard, about 40% of states played Spalding basketball. Numerous leagues around the world also use Spalding. Wilson is obviously popular too, but the TF1000 is an amazing basketball. At the state level, it sets the bar as the elite ball players want to use.

  Keaton Nankivil:
  Yeah, I don’t know if other people think about exactly which basketball product they use, but I grew up adoring certain basketballs. The TF1000 was one. My all-black AND1 Streetball was another—that ball is now fuzzy and gray from years of outdoor play. When you show me that black basketball, it brings back serious memories. So yeah, super exciting.

  Erik Anderson:
  Yeah, we’re really hyped.

  Keaton Nankivil:
  You mentioned platform technology earlier. Obviously, focus is key—getting basketball nailed down first—but tell me about other ambitions. Are there sports where this would also apply?

  Erik Anderson:
  Great question. We have over 20 patents on the technology. Our main patent covers all recreational projectiles—a term I learned after joining this company—that track AI or machine learning events through radio frequency, like Bluetooth or Wi-Fi.

  Anything you can embed our hardware in to track an event—whether it’s a make/miss in basketball, a catch/drop in another sport—we have global IP protection against competitors doing something similar.

  We can definitely see a future where our tech applies to American football, soccer, volleyball, and other consumer-level products. On the enterprise or B2B side, there’s potential for officiating products that track events during games.

  Because of our technology’s versatility, we can also integrate with cameras to detect events or track movements. But right now, we’re focused on the consumer business and launching with Spalding this holiday season.

  Keaton Nankivil:
  A lot on your plate—that’s the perfect segue. We like to end with your ask to our community. The holiday season’s coming up. Do you have any specific questions for our audience—hopefully with basketball fans and young kids growing their game?

  Erik Anderson:
  The easy ask is: buy a basketball when the time is right for the basketball player in your life. We’d love to bring joy and a great experience to them over the holidays and hear your feedback on using the ball and the app. That feedback helps us improve the product. It’s as simple as that.

  Keaton Nankivil:
  I love it. I’ve mentioned this a couple of times, but I have a one-year-old daughter. I’ll probably be stashing one away for her when she’s older, but I’m excited to get her first basketball pretty soon.

  Erik Anderson:
  We’ll make sure it happens soon.

  Keaton Nankivil:
  Awesome. Thank you for your time. Congratulations—we’re super excited to be supporting you and can’t wait to watch the journey continue to unfold.

  Erik Anderson:
  Likewise. Thank you for all the help and support.

  Keaton Nankivil:
  Awesome.

  Samantha Herrick:
  Thanks again for tuning into The Tech Optimist. If you enjoyed this episode, we’d really appreciate it if you’d give us a rating on whichever podcast app you’re using. Remember to subscribe to keep up with each episode. The Tech Optimist welcomes any questions, comments, or segment suggestions, so please email us at [email protected]. Be sure to visit our website at av.vc. As always, keep building.