what impact will technology have on the sports …...global sports &...

SPORTS TECHREPORT 2018

What impact will technologyhave on the sports industry?

SPORTS INNOVATIONwww.colosseumsport.com

Table of Contents

Global Sports & Tech

World Cup 2018

Israeli Tech Ecosystem

Israel Sports Tech Ecosystem

Sports Tech Exits for MNCs

Sports Tech Verticals

Israeli Sports Tech Landscape

AR / VR

Wearables & Sensor Technologies

Security & Smart Stadiums

Colosseum Sports Tech Ecosystem

Partners & Contributors

01

02

03

04

05

06

07

08

09

10

11

12

Global Sports & TechThe global sports industry is undergo-

ing more disruption than ever as a

result of ongoing shifts in media

consumption, the emergence of new

technologies and a rapidly evolving

sponsorship market.

Facebook recently acquired streaming

rights to the UEFA Champions League

from Fox Sports in the US. In another

acquisition, Amazon recently purchased

the rights to the NFL and the ATP World

Tour.

The rise of eSports is another example of

the disruption currently occurring in the

industry. eSports creates an environ-

ment where viewers can experience

playing the game. eSports on a large

scale is considered to be one of the most

popular sports entertainment events in

the world.therefore, more rights holders are

cutting out the middle man to deliver

more content directly to the consumer

through digital or over-the-top services,

thereby contributing to the declining

appeal of live TV in many markets.

Millennials are seeking a cheaper, more highly personalised, immersive experience;

As a result, increasing interest in

sports rights among big tech companies such as Facebook and Amazon has been trending in

sports media.

eSports is expected to hit

$905M in revenue by the end of 2018, a 38% increase from $655M in 2017.

There are several up and coming tech-

nologies that can and will be imple-

mented in the sports industry. Wear-

ables and sensor technologies serve as

examples of tech that will improve the

sports industry. AR/VR, frequently

referred to as the ‘next big thing’ for the

media and entertainment industry has

the potential to affect a range of areas

in the sector, more specifically fan engagement, virtual sponsorships, and

training & performance.

1. Esports To

Grow Substan-

tially and Near

Billion-Dollar

Revenues In

2018; Forbes.

1

01 | Colosseum Sports Report 2018

$5 billionInvested in

Sports Technologies(2014 - 2016)

This year’s World Cup, held in Moscow,

is a prime example for the introduction

of new technologies in sports, more

specifically football.

World Cup 2018

The introduction of the video assistant

referee (VAR) in Moscow was a huge

success. The system, which enabled

referees to review their decisions with

the support of technology, brought

greater fairness to the game.

For the first time in football history, on-field decision making was supported by off-site referees communicating information based on camera replays and technologies.

The video assistant referee team was located in a centralised video operation room in

Moscow, and had access to all relevant broadcast cameras, in addition to dedicated offside

cameras. The team only provided information to the official referee on-site, and the deci-sion remained in his hands; the whole process was largely praised by media broadcasters

and commentators.

VAR is an assistant referee team that supports match officials during live competitions.

Congratulations FRANCE!

Winners 2018 World Cup

Most expensive soccer competition

in history:

$14B+

32participating

countries


2

2. VAR at the 2018 FIFA World Cup

12 stadiumsin 11

hosting cities

IsraeliTechEcosystem

$24BTotal exits in

2017

Israeli high tech companies raised

$5.24 billion in 620 deals in 2017, an

increase of 9% compared with $4.83

billion raised in 673 deals in 2016. The

capital invested in the Israeli high tech

sector has grown exponentially since

2013, and hasn’t shown signs of slow-

ing down. Israeli VC funds alone invest-

ed $814 million in 2017, a 25% increase

compared to the $651 million invested

in 2016.

$5.2BCapital raised

in 2017

Mobileye record exit in 2017

620Deals in

2017

Israel has a proven record of being world leading in R&D, innovation and technology.

There are over 300 multinational

corporations with high tech research

centres in the country, including giants

such as Microsoft, IBM, Apple, Cisco,

HP and Intel.

Intel’s recent acquisition of Mobileye

for $15.3 billion in 2017 further empha-

sises the strength of Israel’s high tech

sector. Since then, the country has

been overrun by investors, strategic

partners and corporations in a very

positive way – they all want a piece of

the action!

2,404 3,408 4,307 4,831 5,242

6,000

5,000

4,000

3,000

2,000

1,000

02013 2014 2015 2016 2017

($M)

Total Capital Raised 2013-2017

700

600

500

400

300

200

0

100

800

# of deals

666684

706

673620

03 | Colosseum Sports Report 2018IVC Research Center

$15.3B

169Active

sports techstartups

$651MRaised by

103 startupssince 2008

Israel Sports Tech Ecosystem

Israel’s high tech sector offers unique

expertise in a range of technological

arenas, which include interactive plat-

forms, big data analysis, computer

vision, AI and augmented reality. These

solutions have enabled Israel to

become a key player in the sports tech-

nology market. Over the past few

years, Israel has gone from around 50

to 169 startups in the sports technolo-

gy sector. These enterprises are

presenting new solutions in a market

that is rapidly growing and actively

searching for innovation around the

world.

Israel is second only to the United States when it comes to sports technologies.

Since 2008, Israeli startups have raised

over $650 million. These investments

have led to $886 million in exits, 76% of

which coming mainly from only seven

startups, further validating how strong

Israel has become in the sector, in

addition to displaying the extent of the

opportunities present in the country.

$886MExits from 9

dealssince 2008


Multinationals Sports Tech Related Companies in Israel

Avid Technology

Startup Nation Central

Minute Mediaraised

$72 million

LiveUraised

$50 million

Mega Rounds in Sports Tech Startups

Nike

EA Sports Apple

Nielsen Intel

Sports Tech Exits for MNCs

Replay is an Israeli startup company

that was established in 2011 and

employs 110 people, most of them in

Israel. Replay’s freeD Free Dimensional

Video allows stadiums to record and

broadcast live events while capturing a

360 degree view. The user can watch

replays and pick up specific frames. With this technology, broadcasting

companies save a lot of time, money

and equipment. Replay’s focus on live

sports events led it to its first success in the London 2012 Olympic games; they

raised $27 Million through several

rounds.

On 9.3.16 Intel announced the

purchase of Replay and nominated

one of the founders as the head of the

sports innovation department.

Intel - ReplayThe purchase of a smart video startup

Invertex was an Israeli company estab-

lished in 2014. Invertex developed a

scan-to-fit guided shopping experi-ence platform that combines 3D digiti-

sation and deep-learning technology

to deliver tailored solutions for in

store, at home and online audiences.

The application allows a customer or

salesperson to create a 3D model of

the feet in the physical shop before the

purchase of the footwear. Invertex

raised $2 Million from OurCrowd and

private angel investors, ultimately

becoming a promising computer vision

company.

On 9.4.18 Nike Inc announced the

purchase of Invertex to strengthen its

digital technology platforms and build

ground-breaking innovations that help

Nike consumers worldwide.

Nike - InvertexThe purchase of a computer vision company

vBrand is an Israeli company analysing

sponsorship and marketing campaigns

in real time at sports events. vBrand is

using artificial intelligence technology together with big data to scan social

media, TV webs and internet webs in

order to measure sponsorship effec-

tiveness during sporting events and

improve marketing campaigns in real

time. vBrand, which began as an accel-

erator of Nielsen, raised $2 Million

from Nielsen Innovation. In 2017, it was

purchased by Nielsen for an unknown

amount.

The growth of the Israeli ecosystem of

sports tech is rapid and impressive. It's

not just startups that make Israel the

leader in the sports tech field, but also VC, hubs, accelerators, labs and

in-house innovation departments.

Nielsen - vBrand The purchase of a sports analytics company

1 2 3

05 | Colosseum Sports Report 2018Yigal Arnon Review

Sports Tech Verticals

Over the last few years, the use of

wearables in the professional sport

scene has become necessary for

athlete development. Smart wear-

ables are projected to exceed 305

million units in 2020.

Athlete Development

Fan Engagement & Community

Global eSports market revenue will

reach $1.65 billion in 2020. In 2017,

the number of frequent eSports

viewers and enthusiasts reached

143 million. This number is project-

ed to reach 250 million in 2021.

Gaming & eSports

The worldwide market size of the

health and fitness sector is $83 billion. Over the last decade the

sector has slowly transitioned from

professional to amateur, opening

the door for more innovation.

Health & Fitness

Media, Broadcasting & Sponsorships

These sectors are constantly inno-

vating, and the rise of virtual spon-

sorships and streaming platforms

such as Twitch (acquired by

Amazon for $1 billion) are disrupt-

ing the traditional media industry.

The global smart stadium market

size is estimated to be $4.6 billion in

2018 and is expected to reach $12.5

billion by 2023.

Smart Stadiums & Ticketing


A rising trend to attract new fans

worldwide lies in AR / VR, a sector

that “Greenlight Insights” estimates

could become a $75 billion business

by 2021.

# of Active Israeli Startups: 45+ # of Active Israeli Startups: 35+

# of Active Israeli Startups: 15+




Athlete DevelopmentFan Engagement& Community

Media, Broadcasting & Sponsorships

Smart Stadiums & Ticketing

Health & FitnessGaming & eSports


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SPORTS INNOVATION

AR / VR

“Greenlight Insights” has estimated

that VR could become a $75 billion

business by 2021. Given its incredible

versatility, this technology is certain to

have a major impact on the sports

industry. AR & VR have the potential to

change the whole industry dynamic,

and seem to be doing so already.

This past summer, the BBC and other

TV providers broadcasted the World

Cup in virtual reality. "BBC Sport VR"

placed viewing units in luxury private

boxes in Russian stadiums, enabling

users to view matches as if they were

present. Was it a success? That remains

to be seen, but we believe these tech-

nologies will become a must in the

future of sports streaming.

“VR and AR will bring additional value to sponsors, broadcasters, fans and proper-

ties alike. If the open questions on moneti-zation are resolved, this is a very interest-

ing avenue for technology and sports.”- Antonio Ramon, COO, JS3SPORTS

We believe that AR/VR will bring addi-

tional value to sponsors in the form of

virtual sponsorships. Advertising will

be broadcasted in augmented reality

(virtual advertisement), which will

replace the real advertising panels on

the field. In addition, mass data mining and technical improvements will

enable more consumer-tailored ads.

Texel VR platform allows content

owners to offer their viewers virtual

seats for live events, creating a new

stream of revenue and a virtual pres-

ence in 8K resolution with over 80%

bandwidth reduction.

VRHealth develops medical solu-

tions that utilise virtual reality envi-

ronments to deliver real-time data

analytics to patients, clinicians and

other healthcare professionals.


Sports: The most disrupted of all industries?

PwC Sport Survey 2017

http://texelvr.com/ https://www.xr.health/

Wearables & Sensor Technologies

Wearables and sensor technologies

were introduced a while back and they

have already penetrated a large

portion of the consumer sports equip-

ment market. Endurance sports, such

as running, have benefited most from these technologies. In the last few

years, major professional sports have

embraced the depth of the perfor-

mance metrics generated by these

technologies, and have adopted them

on a large scale.

Extensive innovation in the industry

has led to newer, more advanced wear-

able and sensor technologies that are

now able to provide more accurate

positioning and bio-medical data,

facilitating decision making on and off

the pitch. The data gathered can help

in areas such as injury prevention and

recovery.

The implementation of these technol-

ogies in the professional sports scene

is gaining momentum. There are sever-

al new technologies that provide

player and ball-tracking identification systems, harnessing wearable devices

with deep learning and machine vision

algorithms to generate performance

and tactics packages for analysis.

Smart wearables are projected to exceed 305 million units in 2020, with a compound annual growth rate of 55 percent.

Track160 is using a patented artificial intelligence technology to track the ball

and track and identify the players

through collisions and other game situa-

tions.

AROS specialises in cutting-edge AR for

outdoor activities. Their ski goggles

allow individuals to augment their ride,

while interacting, navigating, engaging

and much more.


http://www.track160.com/

http://www.aroslabs.com/

Security & Smart Stadiums

Sports venues around the world are

vulnerable targets, as demonstrated by

the 2015 bombing at the Paris soccer

stadium, among other incidents.

Violent occurrences such as these will

not stop anytime soon, therefore fans

can expect an increase in venue securi-

ty to reduce the risk of threats and

increase their safety.

These Smart Stadiums will rely heavily

on digital solutions to boost their secu-

rity capabilities. Advanced technolo-

gies, such as RFID tags, biometric

recognition and electronic fingerprint-

ing are being implemented to efficient-

ly inspect fans as they enter the stadi-

um. RFID wristbands, for instance,

would allow entry times into stadiums

to be reduced by 40%.

To attract more fans, sports franchises continue to construct state of the art stadiums, otherwise referred to as smart stadiums.

These technologies also have the abili-

ty to help evacuate and track fans

promptly and safely in the event of an

emergency. Surveillance cameras to

monitor crowd behaviour will further

provide a very safe and secure environ-

ment, as it can quickly detect quarrel-

some fans.

In order to attract more fans and

provide an experience like no other,

Smart Stadiums are implementing

new technologies and activities, such

as augmented reality, interactive seats,

and big screens that one simply cannot

find at home. With thousands of advanced monitors installed through-

out the venue, fans can watch the

game not only in their seats, but

anywhere throughout the stadium.

Real time access to player profiles, statistical data, and fantasy perfor-

mances of teams and players is easily

available on smartphones and tablets,

as well as at stadium kiosks. Fans

attending the game also have the abili-

ty to order food from their seats, or

even go into an express line at the

concession stands to grab their food in

person. Options such as these will

allow operators to boost concession

and merchandise sales, making the

stadium more profitable as a whole.

These stadiums will enable stadium

operators to increase profitability, improve stadium security, and most

importantly, enhance the fan experi-

ence. By harnessing technology to

ensure a safe and exciting fan experi-

ence, sports franchises can potentially

minimise the chance of violent

incidents occurring in their stadiums,

and avoid revenue loss caused by

these events.


SPORTS INNOVATION LABSPORTS TECH COMMUNITY

Colosseum Sports Tech Ecosystem

The Colosseum Sports community is an

active association of people involved in

the Israeli Sports Technology sector, led

by experienced managers. The commu-

nity is responsible for organising events

and meetings between members and

industry leaders, such as the Sports

Tech Summit 2018, held in Tel Aviv at

the end of July. The community

currently works with 170+ Israeli sports

tech related startups

The Colosseum Sports Innovation Lab

offers a unique program for early stage

startups in the sports sector. In addi-

tion, the space will host facilities for

sports technology implementation

(on-site R&D). The lab will serve as the

go-to site for sports technologies in

Israel. The lab works closely with inter-

national corporations, organizations

and leading sports teams to create

value for both them and the startups.

Colosseum Ventures, the venture capi-

tal activity will focus on sports-related

technologies across all verticals, and

invest in early stage startups in the

sector. Led by experienced partners

with extensive industry know-how, the

VC will seek to promote and sustain

activities in the area. The VC will have

strong international affiliations in order to better support and engage with the

local startups.

Colosseum Summit 2018 Partners

VENTURE CAPITAL

https://www.sports-


Researched and written by

Partners

Colosseum Managing Director

Ever HaggiagVP Investments

Colosseum Sport | OTWOI

Benjamin CaroResearch & Design

Oren SimanianManaging Director

Colosseum Sport

[email protected]

Ronit Amir-YanivPartner

Yigal Arnon & Co.

[email protected]

Gali IdanDirector of Business Development

IVC Research Center

[email protected]


SPORTS INNOVATIONwww.colosseumsport.com

http://www.sportstechtlv.comhttp://www.sportstechtlv.comhttp://www.sportstechtlv.comhttp://www.sportstechtlv.comhttp://www.sportstechtlv.comhttp://www.sportstechtlv.comhttp://www.sportstechtlv.comhttp://www.sportstechtlv.comhttp://www.sportstechtlv.comhttp://www.sportstechtlv.comhttp://www.sportstechtlv.comhttp://www.sportstechtlv.comhttp://www.sportstechtlv.com

For partnerships and more information, please visit our website

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