Australia-based social media company Moko Social Media signed a low seven-figure deal for a 10% stake in BigTeams, a Virginia-based company that produces websites and scheduling software for high school athletic departments. Deal terms give Moko the option to acquire up to 23% of the company, which would make it the second largest shareholder to Swan & Legend, a DC-based venture capital firm. U.S. media industry veteran Leo Hindery, who serves on Moko’s board as a non-executive director, says that he has faith that the company’s executive team will figure out how to profit from a high school sports market that bigger U.S. media companies largely have ignored. “Moko for me is a labor of love,” he said. “I like what [Moko CEO] Ian Rodwell is doing. Moko, in a sensitive way, is trying to bring social media to high school athletics.” One of the main reasons Moko made the investment was to bring its mobile app, REC*IT, into the U.S. market. BigTeams has relationships with 4,320 U.S. high schools. “We’re looking for the ability to scale quickly,” Rodwell said. “We don’t believe in reinventing the wheel if the right kind of partnership is out there. We think this that kind of partnership.” Many companies have tried to make a business in the high school space before. Notably, ESPN pulled back from its high school investments save for a handful of all-star games. But Moko and BigTeams execs say they have a different approach to the market. “We go about it differently,” said Rodwell. "ESPN’s approach is coming from a broadcast world. We look at it more grass roots.” BigTeams CEO Clay Walker agreed. “High schools are one of the next frontiers in the sports market,” he said. “We don’t look at this first as a media business. We view this as a service business. It’s hyper local.” Through the investment, BigTeams plans to roll out video, mobile and e-commerce functions soon, Walker said.
