Rubber ducking – Sports investing DAO – Smart mouthguards – Automated line marking – Personalised hydration – Muscle Strength Devices – Fan Controlled Football
Week 33
Skin In The Game is a weekly newsletter dedicated to investing in sports. We highlight the startups and investors shaping the future of sports and its adjacent markets.
We also run a regulated startup investment club connecting investors with visionary sports, health, and entertainment startups – a platform for investors, founders, and industry experts to collaborate and co-invest.
We’re currently raising capital to re-engineer sports investing. Get in touch to find out more.
Confessions
Startup funding decks fascinate me.
Despite the prevalence of platform listings, Loom videos, data rooms and other info sources used to source and screen early-stage deals, the good old deck remains the primary interface between investors and startups. Old technology is sometimes the best technology, and nobody has figured out a way to improve on the humble pdf.
This week I’ve been working on a funding deck for Skin In The Game. I went into the process closed-minded and set in my ways. I’ve put together my fair share of PowerPoint presentations (as an investment banking intern some of my creations came in at over 100 slides as we waged war on clients with a crazy array of unfathomable charts). So I assumed that producing a deck for my own business would be a walk in the park.
It wasn’t. Turns out that caring deeply about something and intuitively understanding how it can improve the lives of others doesn’t immediately translate into killer slides. Often, struggling for words is a sign you’re overcomplicating. So, after way too long messing around with formats, imagery, and a load of other trivial aspects, I regrouped to focus on content. Could I successfully pitch this business to investors with some bullets scribbled on the back of a beer mat? Could I pitch it without a deck entirely?
I looked at articles by Peter Thiel and Guy Kawasaki on what investors need to see (clue: less is more), and combined these views with my own experiences pitching and reviewing hundreds of decks as a founder and consultant over the years. And after a few shifts of Spotify-enabled heavy lifting (aggressive house music is your friend in these situations), I had a decidedly average first draft.
At this point I called my friend Scott Newall for some rubber ducking. For those of you who haven’t come across this expression (and I hadn’t until I overhead two guys chatting about it in a coffee shop this week), it refers to a common experience in the software development world. When a programmer cannot solve a technical problem and, tearing their hair out in desperation, turns to a friend for help, something interesting happens. In explaining the problem to another person with expertise in their field, the developer solves their own problem. The name is a reference to a story in the book The Pragmatic Programmer in which a programmer carries around a rubber duck and debugs their code by forcing themselves to explain it, line-by-line, to the duck.
Something wasn’t right with the deck, and I couldn’t solve it. When I jumped on the call with Scott, I was feeling protective of my monstrous creation and wanted him to validate what I’d put together. But in walking him through the slides, I quickly realised what was wrong. It was too long, too repetitive, lacking in impact. Scott pre-empted my admission by honing in on the contrarian truth hiding in the deck, highlighting the key slides, and suggesting I refine it further in order to create something truly impactful and memorable.
That process is now complete and I feel very good about the deck. If you’d like to see it and explore investing in Skin In The Game, please drop me a line. I would appreciate the opportunity to share my vision for the business and get input from the incredibly smart people who receive this newsletter. But please remember I am only looking for positive feedback… 😂
I believe that we all have the ability to solve our own challenges, in business and life. Paradoxically, others play a vital role in facilitating this process. Friendships make us more self-aware, empathetic, and dynamic. Friends keep our feet on the ground. And they help us to open our minds and see new possibilities.
That’s why I’m delighted to bring Scott on board as an advisor to Skin In The Game. His experience as a strategist and advisor in the sports and health industries makes him uniquely placed to advise me (which is really a euphemism for stopping me doing stupid things). He’s a busy guy whose skills are in high demand across the startup eco-system, so I see this as a powerful endorsement of what we’re building with Skin In The Game and the significance of the idea that we’re pursuing.
Next week I’m going to talk in more depth about that idea – how it’s evolved into something with massive potential, and how we’re bringing it to life.
Deal flow
⚽️ Former Manchester United players pursuing DAO for sports-related investments – Former players of Manchester United football club are creating a decentralized autonomous organization (DAO) to push sports investment. Gary Neville and Paul Scholes will team up with Singaporean business magnates Peter Lim and Kiat Lim to create the CO92 DAO. The collaboration aims to allow fans to participate in these investments.
🎲 Sportsbet.Io Brings Sports Legends To Life With Direct Human Messaging Technology – Polygon raised about $450 million in a funding round led by Sequoia Capital India with participation from more than 40 major venture capital firms including SoftBank Vision Fund 2, Galaxy Digital, Galaxy Interactive, Tiger Global, Republic Capital and prominent investors like Alan Howard (co-founder, Brevan Howard) and Kevin O’Leary (Mr. Wonderful from ABC’s Shark Tank).
🤖 STIHL buys stake in sports field marker TinyMobileRobots – STIHL, the German company probably best known in the US market for its chainsaws, has purchased 23.8% equity stake in a Danish company called TinyMobileRobots that is focused on automated line marking of fields for sporting events.
💧 Epicore Biosystems announces $10M Series A investment for personalized hydration and metabolic health – Digital health solutions company Epicore Biosystems closed an oversubscribed $10M Series A investment round. The new investment onboards Chevron Technology Ventures, Alumni Ventures and seed investor Joyance Partners, joining Epicore's longstanding list of strategic backers and customers, including PepsiCo, the US Air Force, US Army, National Institutes of Health, and NextFlex.
💪 The Muscle Strength Device VALD, Used by LA Rams, Now Funded by Australia's Queensland Government – Australia’s Queensland government has made an investment in VALD, a Brisbane-based company whose devices measure muscular strength and imbalances. VALD’s clients include 22 NFL teams, 26 NBA teams, 20 MLB teams, 85 NCAA teams, all 20 English Premier League teams and more clubs across the National Rugby League, Australian Football League and UEFA.
🇮🇳 BGMI Parent Krafton Invests $5.4 Million In Nautilus Mobile, An Indian Sports Game Studio – Battlegrounds Mobile India or BGMI parent, South Korea's Krafton, has invested $5.4 million in an Indian sports game developer, Nautilus Mobile. This is the South Korean game producer's first-ever investment in an Indian game development studio.
🎣 Captain Experiences Raises $2M in Seed Funding – Captain Experiences, an Austin TX-based platform for outdoor sports, raised $2M in Seed funding. The round was led by Looking Glass Capital with participation from Andrew Chen at a16z, Not Boring Capital, Goodwater Capital, Psion Capital, Correlation Ventures, TechNexus Venture Collaborative, Capital Factory, and Wilson Sonsini Goodrich & Rosati. The company intends to use the funds to expand to facilitate fishing trips across the US, including markets in South Carolina, California, Massachusetts, Hawaii, and Alaska.
⛓ Fan Controlled Football Blitzes Into Season 2 With NFT Mint – In its second season, set to start April 16, the FCF aims to spotlight its immersive experience, celebrity combatants, a new arena, and Gen-Z lifestyle to set the league apart from its spring football competitors. Their next steps: an NFT pre-launch, public sale, and artwork reveal of its Ballerz Collective line, which will put those NFT owners in control of one of four teams.
🎾 For Serena Williams, Her Tonal Super Bowl Spot Is More Than an Ad – Tennis legend Serena Williams is starring in a Super Bowl ad this Sunday for Tonal Systems Inc.’s home fitness gym, but there’s a whole lot more going on than just another celebrity pitching a product during the big game. The 23-time Grand Slam singles title winner is also an investor in the company.
🎰 Sports-tech startup Sidelines scores $25 million funding round – Sidelines, an Israeli startup company founded by two former Google employees, announced the completion of a $25 million funding round led by investment firms NFX and MoreTech. Sidelines specializes in the development of a platform for social sports betting experiences.
📝 Crain Buys 20% Stake in Newsletter Publisher Front Office Sports – Crain Communications is investing in Front Office Sports, giving the startup funds to expand its daily newsletter aimed at sports-business professionals. The deal values the company at $25 million.
🧠 Talkiatry Funding Totals $37M as Left Lane Capital Doubles Down On Investment, Adds Key Hire From Uber – Funding will be utilised to expand mental health services across the US with national insurance contracts. Talkiatry, a leading provider of responsible, high-quality and accessible in-network psychiatric care completed its $37M Series A with an additional $17 million from Left Lane Capital.
😃 Palihapitiya's SPAC to take Akili Interactive public in $1B deal – Akili Interactive, a startup that has developed video games to treat attention-deficit disorders, has agreed to go public by merging with a Chamath Palihapitiya-backed blank-check firm.
🇨🇦 Caisse reinvesting in sporting goods refurbisher – Caisse de dépôt et placement du Québec is reinvesting $20 million in a reconditioned sports equipment retailer. Laps, a Quebec-based business that resells golf and bicycling equipment in North America and Europe, received its first investment from the Caisse in 2019. It intends to use the funds to pursue a growth strategy that involves using artificial intelligence software to optimize its digital sales platform, according to a press release.
🧃 Kencko takes in new capital to shake up how we consume our fruits, vegetables – Kencko, the plant-based, blender-free smoothie company, raised $10 million in Series A funding to expand into new categories. Existing investor Siddhi Capital led the round and was joined by both current and new investors, including Next View Ventures, Riverside Ventures, Silas Capital, Cheyenne Ventures, Shilling Capital, Indico Capital, Mission Point, Gather Ventures and Nextblue Ventures.
🧠 Intellect Closes $10M Series A to Scale Mental Healthcare Across Asia – Intellect closed $10 million in Series A funding, bringing total funding to $13 million since launching in 2020. The oversubscribed round was led by New York-based HOF Capital, and welcomed new investors including Headline, East Ventures, MS&AD Ventures, DG Daiwa Ventures, Pioneer Fund, as well as existing investor Insignia Ventures Partners. Other notable angel investors this round included Shopback Co-founder & CEO Henry Chan, Cathay Innovation's Rajive Keshup, former Headspace VP of Engineering Neel Palrecha, Co-founder of US unicorn Forge Samvit Ramadurgam, Peak Co-founder Sagi Shorrer, Snap Inc. Director of SEA Anubhav Nayyar, Tinder & Match Group GM of SEA Gaurav Girotra, along with family office funds of billionaire founders.
🥓 Natalie Portman-Backed French Vegan Bacon Startup Breaks Records With $28.3M Raise – French veggie bacon maker La Vie, formerly known as 77 Foods, has closed a successful Series A funding round totalling €25 million. The round, which was led by VC fund Seventures, is the largest single alternative protein raise for a French food tech company to date.
🏙 Culdesac raises $30M Series A – The round was led by Khosla Ventures, with Founders Fund, LENx (Lennar's venture investing arm), Byers Capital, Zigg Capital, and Initialized Capital investing as well. This capital will help Culdesac to scale its team, raise our first $2B of real estate capital, and get one step closer to its mission of building the first car-free city in the US.
☘️ Can you bring nature indoors? Finnish green wall innovator shows how with €7 million to create healthier interiors – Helsinki-based startup that designs green walls, Naava has raised €7 million investment. The round was led by Stockholm-based Nidoco, and joined by Mika Ihamuotila, Tesi, Mikael Hed, Benoit Wiesser, Antero Vartia, Teemu Päivinen, Butterfly Ventures, and the Hammaren family.
🚴♂️ Cowboy raises $80M to take its e-bike business up a gear – Cowboy, a Brussels-based startup that makes e-bikes and an accompanying app to manage various services related to them, has raised $80 million in a Series C round of funding.
🇦🇺 Sydney-based health startup Eucalyptus has raised $60 million in Series C funding, as it eyes expansion into the UK – Eucalyptus has pocketed $60 million in Series C funding, adding to the $30 million it secured last July. The funding round was led by Silicon Valley shark Mary Meeker, an early investor in Airbnb and Block. Eucalyptus builds for-purpose centralised digital health products that connect everyday patients with doctors and suitable health solutions.
💼 Quan raises $1.15M from YC to tackle post-pandemic employee burnout – New startup Quan has raised $1.15 million in pre-seed funding from Y Combinator, along with a Netherlands-based impact fund and several unnamed angels, to address the gap between engagement surveys and well-being perks.
👱♂️ Mosh raises $25 million to break down taboos in men’s healthcare – Aussie men’s health startup Mosh has entered the New Year with $25 million in new funding to continue its mission of normalising men’s access to anything from sexual health support to hair-loss treatment. The funding includes investment from Joe Spector, co-founder of huge US men’s health platform Hims, as well as from Aussie investment company Washington H Soul Patterson and Regal Funds Management. Existing backers including Parc Capital and Thorney also contributed.
🤩 Digital Fitness Coaching Service Future Raises $75m In Series C Funding – New Investors Include J.J. Watt, Rory McIlroy, Kevin Durant And Rich Kleiman's Thirty Five Ventures, As Well As Kate Hudson And Oliver Hudson of Sibling Revelry, Who Will Create a Podcast Series for Future.
🤕 Prevent Biometrics, Developer of Smart Mouthguards to Study Head Impacts, Raises $5 Million – Impact-monitoring mouthguard developer Prevent Biometrics has raised $5 million in strategic funding led by Phoenix Capital Ventures. Prevent’s mouthguards have built-in sensors to track data on head impacts and help monitor athletes for possible concussions.
📱 Soccer Star Luka Modrić Invests in Sports Social Media Startup Sportening – Sportening, a social media app for sports fans to access chat rooms, news and statistics, as well as rate players after games, has raised a $7 million seed funding round that includes investment from Real Madrid star Luka Modrić. The startup social network aims to connect fans with fan bases of specific sports teams. Modrić, joins Superbet Group founder Sacha Dragic, PayPal co-founder Peter Thiel’s Clarium Capital and former Sequoia Capital Global Equities COO Ralph Ho as investors in Sportening.
👩⚕️ Summus Global snags $22M – Startup Summus Global, which connects patients with medical specialists, has seen steady strong growth. The New York City-based company completed a strategic investment round of $22 million led by Danaher Corporation’s co-founder and executive committee chairman Mitchell Rales and the Glenstone Foundation.
💪 GlobalBees acquires sports equipment brand Reach – Rollup ecommerce unicorn GlobalBees has acquired the fitness equipment and accessories brand, Reach.
🧠 HealthRhythms lands UCHealth partnership, $11M investment to scale up AI-based mental health app – HealthRhythms closed a highly oversubscribed $11 million seed round led by GSR Ventures and investor Brook Byers, founding member of Kleiner Perkins Caufield & Byers.
🏃♂️ Spot Fitness Closes Angel Round in Anticipation of App Launch – Spot Fitness, maker of the Spot Fitness app, has completed an angel round of fundraising. The location-based app makes it simple to discover the best "spots" to be active, to find events and activities to join, and to connect with a fun and engaging community.
Some tweets
I recently watched an amazing documentary about the Isle of Man TT. I’m not really a petrolhead (more like one of those shallow Netflix viewers who ruined the F1 title decider), but the TT but it is a unique event that sits on the fringes of mainstream sports – a traveling community of eccentric (i.e. bonkers) risk-takers who push the limits of human performance for the sheer love of racing. It’s what so many other sports pretend to be.
Yours in sports,
Ed
—
Ed Rhys
Founder / Skin In The Game
www.skininthegamegroup.com
A favour
I hope you enjoyed this newsletter. If you did, please share with friends who you think will get something out of it.
And if you can spare the time, get in touch with your thoughts. Whether founder, investor, or sports fan, your input will help me to improve what I’m doing and serve the Skin In The Game family better.
Skin In The Game is a startup investment club connecting investors with visionary sports, health, and entertainment startups. We provide a regulated platform for investors and entrepreneurs to collaborate and co-invest.
“No muscles without strength, friendship without trust, opinion without consequence, change without aesthetics, age without values, life without effort, water without thirst, food without nourishment, love without sacrifice, power without fairness, facts without rigour, statistics without logic, mathematics without proof, teaching without experience, politeness without warmth, values without embodiment, degrees without erudition, militarism without fortitude, progress without civilisation, friendship without investment, virtue without risk, probability without ergodicity, wealth without exposure, complication without depth, fluency without content, decision without asymmetry, science without skepticism, religion without tolerance, and, most of all: nothing without skin in the game.”
― Nassim Nicholas Taleb, Skin in the Game
SKIN IN THE GAME LIMITED is registered in England and Wales under Company Number 13200102 and with the FCA as an Appointed Representative with FRN 946089. SKIN IN THE GAME LIMITED is an Appointed Representative of Finex LLP which is authorised and regulated in the UK by the Financial Conduct Authority (“FCA”) with firm reference number 507537.