Tennis Australia has announced the first close of its $30 million venture capital fund, marking a significant investment in the sports technology sector. Managed by its corporate venture arm, AO Ventures, the fund aims to back startups innovating across sport, entertainment, media, and health.
AO Ventures plans to allocate 75% of the fund to private and strategic investors, with the final close expected after the conclusion of this year's Australian Open in late January. The fund will invest between $300,000 and $1.5 million in startups from seed stage through Series A, with additional capital reserved for follow-on funding rounds.
This initiative is part of a broader trend of increased venture capital investment in the sports and entertainment sectors, which are experiencing strong global expansion. According to PwC, the global market is projected to reach $680 billion by 2028.
Notably, Scrum Ventures, a US and Japanese venture capital firm, recently closed a $68 million fund to invest in sports and entertainment tech startups.
Tennis Australia's commitment to fostering innovation is further demonstrated through its AO Startups program, which tests technologies within its ecosystem before making investment decisions. By supporting emerging technologies, Tennis Australia is poised to influence the future of sports technology, enhancing fan engagement, athlete performance, and event management.
The establishment of this fund underscores Tennis Australia's strategic move to position itself at the forefront of sports innovation, potentially setting new standards and creating opportunities for technological advancements within the industry.