Australia continues to serve as a progressive and economically sound nation, and one that blazes a trail for others to follow across the globe. Its government is certainly one of the first to conduct serious enquiries into the future of film and television content, with particular focus being given to the role of social media in broadcasting live and recorded events.
This is likely to impact the future of sports broadcasting, changing the way in which fans watch their favourite teams in action. Make no mistake; sport is ingrained in the culture of Australia, which is we’re seeing such a considerable investment in sports tech businesses here.
Recently, international accelerator Techstars was one of three Aussie startups to share $13.45 million in investment, as they look to create an Australian SportsTech program that will support 20 new businesses over the course of the next two years.
This will be exceptionally beneficial for aspiring sports tech startups, who require capital to bring their visions to life. With this in mind, here are three things to consider when approaching investors:
- Get the Right Team in Place
When you speak to investors, one of their first questions will revolve around the experience that you and your team have in the sports industry.
Additionally, they’ll be looking for the unique experiences that your team will bring to the table, in order to determine how quickly you can bring your product to market and create a scalable business. By demonstrating understanding and an approach that is commercially viable, you’ll create a much more positive impression in the eyes of investors.
This way, investors can determine the risk-reward ratio associated with your business, before identifying how they can add value and the potential growth of the venture.
As a startup, it’s therefore crucial that you invest heavily in an experienced and skilled team that can bridge the gap between concept and profitable business.
- Provide Evidence and Legal Understanding Where Possible
While the business that you launch may well betray your passion, it’s important that you maintain a critical mind that considers the practical elements of appealing to investors.
After all, you can rest assured that investors will appraise your proposition from an entirely independent perspective, as they look for evidence that your business model works and an understanding of the legal changes that may lie ahead.
In terms of the former, it would be ideal if you could prove the viability of your business model on a small and manageable scale. When combined with a scalable business plan, this will really prick up the ears of investors who are motivated to invest.
Sports law experts will also testify that intellectual property and similar concepts could provide a stumbling block for your venture, so you’ll need to be aware of these and have the necessary protection in place to safeguard your ideas.
- Ensure that your Idea Fulfils its Market Potential
There’s no doubt that not all business ideas have been created equal, and investors will be quick to assess the potential of your concept and future growth.
With this in mind, it’s your duty to ensure that your idea can fulfil its market potential, with future projections and growth plans matching the opportunities that lie in wait.
There are several different elements to be considered here, including the ambition that underlines your business plan, the gap in the market and the resources that you’ll deploy to fill this.
Make no mistake; these elements will need to match in the eyes of investors to create a strategic fit that can underpin long-term growth.
