It doesn’t take an emotional attachment to the team, a “love for the game” or a real understanding of sports at all to appreciate what’s happening right now within Minnesota SportsTech cluster of companies.
The founders and operators of some 26 unique companies featured in The Ultimate Guide To SportsTech in Minnesota v2 share a passion that goes beyond the bleachers. They are in the game and on the field of business, playing a part in what has undeniably become a major part of American culture and economy.
The guide is specific by company, yet general for the 20,000 ft. view of things; based on the latter, aggregate data, three takaways stand out from this version:
1) The cluster is young:
50% of them (13) were established within the past three years, 75% are less than $1m in revenue, and 25% of those are still pre-revenue, 75% are bootstrapped. Is it the nature of time that few and fewer will statistically last or does it represent a surge in starts over the past 36 months? Probably some of both, though nascent regardless.
2) The cluster is growing:
In terms of the sheer number of companies, there were 21 within first version, now there are companies 26 in the second version. Already, there will be more ahead in the third version, as new starts and stealths are underway.
3) The cluster is skewed in more ways that one:
1 of every 3 companies is straight B2B, over half are both, while B2C represents just 15% of sales models.
SportsEngine is the largest in terms of number of full time employees by a landslide with 400 employees, followed by SportRadar with 140. Both those companies have solidified themselves as leaders in the space based on their scale and previous buyout. Exlcuding those with many part time/seasonal employees, the next closest are: Wellbeats (~53), Fitness on Demand (~50), and SportsHub Technologies (~47). That’s a big gap in the headcounts and it will interesting to track who, if any, can catch up to the largest employers in Minnesota SportsTech.