Dodgers CFO Tucker Kain is ready to cut some checks to a group of prospects that can pitch, execute a game plan, and close out. He is not looking to bolster the bullpen, but rather find a second group of sports and entertainment tech firms for the team’s trailblazing accelerator program. The MLB club’s owners and their partner, digital agency R/GA Ventures, today began taking applications for the Dodgers Sports & Entertainment Accelerator. The inaugural class of this first-of-its-kind program last year offered 10 companies access to industry partnerships and expertise, as well as mentors from the sports, entertainment, and strategic partner/investor worlds. “The principle remains the same,” explains Kain. “We’re looking to leverage our brands, our ownership group and partners at R/GA and our network to accelerate the growth of these young companies in sports and entertainment space to solve specific issues and change the odds of success.” Unlike many accelerators, these were not all startups seeking seed money; some firms already had raised sufficient capital but were looking to capitalize on the unique connections and partnerships that the Dodgers and R/GA could bring to the table, including pro sports teams, big-name brands, and venture capital funds. The Dodgers and R/GA invested an average of $120,000 for a 6% investment in the companies; the actual amounts and stake varied according to firm size and prior funding. The accelerator chose from 600 applications last spring and Kain anticipates at least that many during the next three months of scouting. He says the program is being selective, “five to seven companies is the target, but it’s more about the right fit than the number.”
SEVERAL AREAS OF INTEREST: While the program is being mindful about over-recruiting in the businesses where its current companies operate, Kain reels off a number of areas of interest for the new class. “We’re looking hard at the virtual reality and augmented reality space, sports training, how we make arenas and stadiums more efficient and smarter, eSports, and layer on big data and analytics on top of all those pieces to help us solve our problems and deliver a better experience for our athletes on the field and our fans,” he said. R/GA hosts the accelerator in its open-plan offices in the L.A. tech-hub neighborhood of Playa Vista. It also provides execution expertise and connects participant firms with household brands and potential partners. Stephen Plumlee, the agency’s global chief operating officer, notes, “We focused during the program on bringing in people who could be mentors, advisors, or partners, not just investors. ... We’re continuing to stay in close touch with these companies.” The accelerator matriculated its first 10 firms in November. Each team made its pitch on the field at Dodger Stadium to a crowd of 550 venture capital investors, potential corporate partners, and media members including representatives from MLB, NFL, NBA and UFC, team owners and leading global sports and technology brands. Kain says the first-round selections are now scoring strategic partnerships and investments, plus half of the inaugural class will be deployed at Dodger Stadium this season: Appetize, Doorstat, Focus Motion, Kinduct, and LeagueApps. He said, “The majority, if not all of the companies in the program, at the very least have created strategic partnerships with industry folks. Kinduct has gotten almost 20 new professional and NCAA contracts out of the program and a new partnership, it has been approached for acquisition, and is raising money.”
INTEGRAL TO COMPANY'S GROWTH: Kinduct Founder & CEO Dr. Travis McDonough is not ready to name the new investor/strategic partner, but says the “multi-million dollar investment” is from a Fortune 100 company. McDonough adds the accelerator’s exposure was integral to the company’s growth, especially since the human performance (sports training) software company is based in Halifax, Nova Scotia. “We didn’t really believe we could be a global reaching company until we participated in the program,” McDonough says. “We learned a lot about the industry itself through the eyes of other companies and access to the mentors who have incredible experience.” The company has added 17 pro and college teams as partners thanks to the accelerator, and McDonough says the YouTube clip from Demo Day is “the best marketing collateral we have.” LeagueApps President Jeremy Goldberg said the accelerator "allowed us to establish relationships and test and iterate in hyper-speed to get results and incredible insights that might take a year or two to achieve." The LeagueApps platform organizes youth and local sports and it landed partnerships with the Dodgers RBI urban youth program and the Jr. NBA.
SLATED FOR AUGUST OPENING: The Dodgers Accelerator 2.0 is slated to open in August and run through November. Before the program started there were questions about its goals and how it might add value to others beyond the team and portfolio companies, but it has since attracted attention and followers: Fast Company named the Dodgers to its list of most innovative sports companies, the NFL held a sports tech competition around Super Bowl 50, Kain says the NBA Kings are talking about a similar startup contest, and there have been international inquiries about expanding the accelerator abroad. Kain said all of this goodwill should open more doors to sports and entertainment industry executives. He said, “We can get past explaining and deep into strategic conversations and value creation. It’s at the core of all of this and it’s built for the long-term.” Kain added the year’s volatile start for financial markets has not affected the accelerator and he reiterates the program is a long-term strategic venture for the team’s owners. “Whether it goes into perpetuity is something we’ll evaluate on an annual basis, but we think it creates value and innovation in our industry.”
