Private Equity Surge: Women’s Sports and Emerging Leagues Attract Major Investments
Staff Editor Private Equity and Venture Capital Fuel Growth in Women’s Sports and Emerging Leagues
The sports industry is witnessing a significant shift as private equity (PE) and venture capital (VC) investors increasingly turn their attention to women’s sports and emerging leagues. This trend has led to a rebound in venture capital funding for U.S. sports startups in 2024, with a notable increase in both deals and total investment.
While private equity continues to invest heavily in established sports teams and leagues, venture capital is focusing on early-stage companies and emerging sports technologies. New leagues and women’s sports, in particular, are seen as major growth opportunities, attracting substantial VC interest.
High-profile women’s sports teams and leagues have been at the forefront of this investment surge. League One Volleyball and National Women’s Soccer League teams have secured significant funding, highlighting the growing appeal of women’s sports to investors. Emerging sports such as cricket and track-and-field are also gaining traction in the investment community.
Investors are particularly interested in innovative ways to engage existing sports fans through shorter events and novel approaches. This strategy aims to capitalize on the established fan base while exploring new avenues for growth.
However, the sports startup landscape is not without its challenges. Some sectors, including media and sports betting, are facing decreased investment and longer deal-making processes. As a result, investors are becoming more selective, favoring companies with clear traction and growth potential. This shift has led to an increase in founders bootstrapping their ventures before seeking external funding.
Several notable sports startups have successfully secured substantial funding in recent months. Angel City FC raised $123 million, while League One Volleyball secured $100 million for professional women’s volleyball and youth programs. TOCA Football raised $100 million in a Series F round, focusing on tech-driven soccer training.
Other significant investments include Grand Slam Track’s $39 million for a new track-and-field league, Major League Cricket’s $39 million to popularize cricket in the U.S., and On3’s $36.25 million for high school and college sports coverage.
The trend extends to established women’s sports teams, with NJ/NY Gotham FC raising $34 million, featuring prominent U.S. Women’s National Team players. Sofive Soccer Centers secured $30 million for indoor soccer facilities, while Unrivaled Basketball raised $28 million for a new 3×3 women’s basketball league.
As the sports industry continues to evolve, these investments signal a growing recognition of the potential in women’s sports and emerging leagues. The influx of capital is likely to drive innovation and growth in these sectors, potentially reshaping the sports landscape in the coming years.
