More and more athletes are deciding to invest in companies at an early stage – in other words, to participate in start-ups. The most important reasons for this are:
The power of personality
Today, individual athletes have the opportunity to get in direct contact with their fans and create their own personal brands via social media. Athletes are thus able to use their supporters and their network to offer added value to companies (especially those that want to promote products and gain market share). So why not use this awareness for your own investment?
Access to investment opportunities
In the meantime, there are many examples of third-party programs and accelerators that are aimed specifically at athletes as equity investors, mainly in the USA. For example, One Team Collective, a cooperation between the NFL Players Association and venture capital partners that aims to connect start-ups with current and former players. The program organizes a pitch day the week before the Super Bowl to facilitate contact with companies seeking funding and access to professional athletes.
The capital is available
According to Deloitte’s Annual Review of Football Finance, Premier League salaries have risen by around 40% over the past five years. The rising profits in professional sport, combined with relatively short playing careers, have led athletes in Germany to increasingly consider investing their capital in start-ups.
Preparing for a career after a career
In contrast to the past, athletes today are much more professional when it comes to building up know-how in their financial commitments and thus preparing themselves better for their future after their career. The cooperation with professionals from the venture capital industry, the professional consulting that takes place there and the cooperation with start-up entrepreneurs offers an exciting new field and the opportunity to develop further as an entrepreneur.