What Investors Really Think About Sports Tech in 2025?
After a few unpredictable years for venture capital, the sports tech world is entering a new phase. Not quite back to the highs (and bubble) of 2021–2022, but far from the funding freezes of late 2023. It’s a space that’s stabilising, maturing, and in many ways, being taken more seriously.
At LaSource, we wanted to cut through the headlines and get straight to the source: the investors themselves. So we reached out to Raef Jackson of Accelerate Ventures, Vasu Kulkarni of Courtside Ventures and Koen Bosma of APEX, three highly reputable VC firms that actively invest in this space, to understand what they’re seeing on the ground. We asked them the questions that startups, assessing their next business move, might be asking themselves:
Where is capital still flowing? What kinds of companies are breaking through? How have valuations, timelines, and investor expectations evolved? We asked these questions to better understand the current sentiment of the market, and the responses offer a clear window into what investors are really thinking about sports tech in 2025 and where they believe it's heading next.
A Market That's Reset, But Far From Slowing Down:
The days of "easy money" in sports tech are behind us, but that doesn’t mean the market is cooling off. If anything, it’s becoming more intentional.
Raef highlighted a shift that has become more evident than ever: sports tech is no longer a niche play. In the first quarter of 2025 alone, deal volume has already surpassed all of 2024. Investors seem to be treating this category like any other business vertical, comparing it to fintech or healthtech, rather than viewing it as a novelty.
That said, Vasu maintains that the ecosystem remains challenging, especially for companies raising larger rounds. While the panic of 2023 has eased, fundraising remains a competitive endeavour. The good news is that interest in consolidation is on the rise. Large corporations are either backing funds directly or acquiring startups themselves.
Apex’s view on this is rather simple but effective: more companies are being started, fewer are being funded. But the long-term view remains bullish. “There’s more excitement around sports as an asset class than ever before,” says Koen Bosma, and “tech companies that help grow or protect those assets will always have a role.”
What’s Getting Funded (and Why)
If you're a founder wondering what investors are still excited about, the answer lies in two words: value creation, an important virtue we’ve lived by over the past 5 years in sourcing the best technologies and not necessarily the most popular ones - ones that deliver actual value in terms of commercial benefit or long term structural benefits.
Accelerate is seeing strong interest in startups that help the sports industry operate more efficiently. Clear examples of this could be tools for fan engagement, injury prevention, and sponsorship ROI. Typically, startups like CAMB.AI, one of the portfolio companies of Accelerate Ventures, do real-time speech-to-speech translation of live and recorded content. Having recently partnered with the LFP, CAMB.AI wants to enable sports organisations to leverage AI more effectively by being a language partner rather than just a mere AI vendor. Business verticals (on and off the pitch) that have the potential to drive value with tech innovation remain particularly attractive as they could offer clear returns to clubs, leagues, or media partners.
Courtside is looking closely at longevity. Solutions once reserved for elite athletes, like health diagnostics or recovery tools, are now being made accessible to everyday players. “We’re betting on startups that help people stay active into their 50s and 60s,” says Vasu Kulkarni.
APEX is particularly interested in companies that own proprietary data, whether related to athlete performance or fan behaviour. As AI transitions from hype to practical application, having unique datasets is becoming a significant competitive advantage. As Koen Bosma put it, companies that control their own data will have a “massive edge” over the rest.
Grounded valuations are back:
The days of inflated valuations and fast closes are gone (for now, at least). Fundraising timelines have stretched, and investors are digging deeper, asking tougher but justified questions: What is a valid proof of concept for this tech solution? Can it scale across different parts of the business? Are unit economics sound? And most importantly, is there a clear path to profitability? As Raef noted, “while that means capital is harder to secure, the upside is that funded companies are typically stronger and better prepared for sustainable growth.”
This recalibration is widely seen as necessary. There’s a growing understanding that sports tech needs to be assessed on its own terms and not be compared to other business ecosystems from other industries. The market potential for a product that helps reduce ACL injuries simply isn’t the same as one solving global payment issues, and valuations need to reflect those differences.
At the same time, there’s optimism in the long-term potential of maintaining discipline valuations. Stronger filters mean stronger companies. The startups that do raise in this climate tend to be better prepared for what comes next.
AI Is Moving From “Concept” to “Use Case”
AI continues to play a central role in the investment conversations, but the tone has shifted from excitement to deeper evaluation. Investors are now seeking tangible, practical applications.
There’s growing traction in tools that apply computer vision to athlete performance, or platforms that personalise content for fans in meaningful ways. Rightsholders are more willing to pay for tech that helps them optimise sponsorship value or reduce the risk of injury. AI has evolved from being a layer to a core part of the product.
One area still considered unsolved by Vasu is the automated capture of data from a single video feed, no third-party data, no manual tagging. It’s a difficult problem, but whoever cracks it will likely create one of the most valuable companies in the category.
There’s a reason we at LaSource chose to work with Polish startup ReSpo.Vision, is because they are one of the few companies positioned to address this gap in the industry with their single-camera, AI-driven tracking system. It’s also why we continue to explore partnerships with companies like Deeptimize, whose capabilities could complement ReSpo.Vision’s core strengths help build a truly automated data capture platform. This is what we mean by adopting an “ecosystem” culture, where we identify sweet spots for collaboration that drive value for audiences and stakeholders
Meanwhile, quieter trends are emerging. Personalised nutrition, hydration tracking, and other wellness-adjacent products are gaining ground, especially those powered by underutilised data sources. There is a belief that the next wave of differentiation may come from these less-obvious, data-rich niches.
A Global mindset with localised priorities
The global nature of sports presents both opportunities and complexities.
The U.S. remains the anchor market, particularly in terms of commercial maturity. Most international startups eventually circle back to selling into American leagues, teams, or audiences. That said, other geographies are moving quickly.
India’s youth population and growing startup ecosystem are drawing attention. Similarly, the MENA region, particularly Saudi Arabia, is experiencing a rapid buildup of sports infrastructure, and increasingly, value-driven technology is being used to support it.
What’s clear is that innovation may continue to emerge from traditional hubs like the U.S. and Europe, but capital is becoming increasingly global. Investor networks are diversifying, and the definition of “emerging market” is expanding.
If they had to pick just one bet
When asked what kind of company they’d most want to back before the end of the year, the answers were refreshingly specific.
Raef pointed to piracy in sports broadcasting, a $28 billion problem waiting to be solved. A company that could meaningfully reduce illegal streaming, using proactive technology like watermarking or real-time detection, would create enormous value overnight.
Vasu’s answer focused on the longstanding dream of automated event data using only a video feed. It’s an old ambition, but still largely unsolved. Accuracy remains the barrier, but belief in the potential remains high.
And then there was a more personal answer from Koen: building something that gets kids moving, without needing a screen. A tool that motivates physical activity in a world increasingly addicted to screens, which are a major reason for dwindling interest levels among the youth. Not the biggest market perhaps, but the kind of unique mission people could get behind.
Final Thoughts
Sports tech investing is no longer about chasing hype. It’s about solving hard problems, building useful tools, and understanding the nuances of a category that sits at the intersection of culture, health, and entertainment.
Investors are still thinking about backing bold ideas, but the ones getting attention today are grounded, thoughtful, and built for long-term value. There’s less noise, more signal.
And as Koen Bosma of APEX put it best: great founders, tackling big problems, will always attract capital.
LaSource is a sports consulting agency working closely with startups, tech innovators, and major sports organisations to accelerate growth, shape strategy, and unlock new commercial pathways. Learn more at lasource.io