Riley Evans

The Future of Sports: The New Emerging Technologies That Are Disrupting The World Of Sports In a recent interview, I talk about the sports tech he's most excited about. Spoiler alert, I talk about OSDB SPORTS, a Solyco Capital portfolio company. "OSDB founded by co-founders Aaron Rodgers & Ryan Rottman saw a gap in the marketplace and thus created OSDB in 2020. The Online Sports Database consolidates all sports sites and aggregates that info and houses it under one roof..... The beautiful thing about this new sports tech offering is its giving fans, brands and gamblers alike the ability to gain access to athletes and their valuable information that was previously unattainable." #Venturecapital #OSDB #sportsinvestment

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What's our "WHY" at Champion Venture Partners? 1. Access! Providing athletes and athletes adjacent professionals access to the private alternatives sports asset class as a lot of their financial advisors don't play in them or even look at them. 2. Access! Providing the general public the opportunity to invest in the private alternatives sports asset class. How awesome is it that you can invest on the same terms as some of the biggest names in sports and entertainment! 3. Education! If you want to learn before you invest, we have programs and services available. 4. Partnerships! CVP are long term "forever partners" for our portfolio companies. Sure, we may have a few turn and burn VC & PE deals as that's the nature of the business, but our bread and butter is long term strategic growth value add no matter if it's a 5 year deal or a 30 year deal or a "forever deal".

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What’s interesting in the sports asset class, is that folks just automatically go to teams. Not only do they go to teams, but they think teams in the big 4, and then shut down. The comment from a buddy of mine today, who is a non accredited investor (who still does a lot in real estate)- “Yeah man it’s cool, it’s sexy, but I can’t write a check big enough to buy into like, an NBA team…” Bro. Really…. So, what did I say back? “Not with that attitude!” Besides a laugh, the reality is that’s exactly what people think the sport assets class is. Far from it. So what is it… I thought you’d never ask!!!… big breath…. ANNNDDD… CPG products, sports betting, NIL, sports tech, performance, clothing, recovery, memorabilia, fan experience, sports medicine, youth sports, sports gear, media, broadcasting, exchanges, e-sports, nutrition, wellness, sponsorship programs, fantasy sports, wearables, event mgmt, ticketing and access, leagues, real estate, sports medicine….. AAAANNNNDDD… teams. And much more. My thumbs hurt. The point is, it’s time for meaningful ownership in sports. So for my buddy, yeah, it is really cool, it is sexy… and you can totally write a check big enough to play. You just have to know where acredited and non acredited investors alike can invest and truly have meaningful ownership. Alts for all! ***Hint… Champion Venture Partners plays in all these. Come invest with us!

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Sadly this happens more often than you think. 😭 After spending years - blood, sweat and tears - to end up with zero must be incredibly heartbreaking. 💔 Lessons to take away: 1. Understand the numbers Play out different scenarios and ensure you do a financial model of worse case scenario. How else can you end up with zero besides the business failing completely? This also leads into 👇 2. Valuations While Founders and their investors tend to want to raise at as high a valuation as possible, try to find a balance. (VCs are also looking to mark up their paper “returns”). Have you left yourself some breathing room while also ensuring there is stretch in your goals? Remember: if the business does do much better than expected, you will have investors coming to you anyway and can always raise another round at a higher valuation. Try to avoid the dreaded down round! 3. CFO, Lawyers, Independent Board Surround yourself with proper startup advice. All too often, founders focus only on finding and securing investors thinking this is the silver bullet. In comparison, very little attention is paid on vetting other advisors. Find a startup lawyer and CFO who can explain the terms and numbers to you and ideally someone who has seen multiple (bad) exits. They will likely charge more but you’ll be paying for it either way! I’m also a big advocate that Series A+ have Independent Board members (ie. Non Executive). Board composition should be split in 3rds - Founders/Executives, Investors and Independent. 4. Real Customers Who are your customers, really? Raising money at ever higher valuations without a path to profitability or at least an improvement in the profitability ratio is risky. Raise when you know how to invest the money wisely for both bottom and top line growth. As a grant assessor, I’ve also seen a fair share of businesses where it’s clear the grant itself is actually their biggest customer. This is perfectly normal for a very early stage venture but once the business has been in the market for several years, one has to be concerned if the real customer is the government!

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ANNOUNCEMENT- I’m delighted to share that Asset Class has partnered with Palantir Technologies to bring AI to the Alternatives and Private Capital Markets. At Asset Class we will integrate the AIP platform and Foundry capabilities of Palantir with our Fund Operating System (Fund OS). We will work with the AIP Platform and Palantir's Foundry Ontology to support highly complex tasks / co-pilot features that will allow us to leverage the FULL dataset that comes with the Asset Class Platform. By linking EVERY step of the Investor and Fund journey on a SINGLE platform, we have a uniquely complete dataset that can inform our AI actions. Over time we will integrate this as part of our Asset Class Network. This will continue to ensure Asset Class is a far more powerful system than any other in the market. We are a platform - not just an app. In the near future, we will be an AI Enabled, Networked Platform I cannot wait to bring the power of AI to our platform to enable our clients to super-charge their investment in our platform. See announcement here: https://lnkd.in/eCSy5Tnu

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Summary: The article discusses Palantir's role in the growing defense tech startup sector and its efforts to become a driving force in the industry. The company's CTO, Shyam Sankar, is determined to help Palantir create a defense tech ecosystem and maximize its impact beyond its government contracts. Key takeaways: Sankar has initiated the First Breakfast program to provide guidance and tools to defense tech startups, aiming to secure a head start in the industry and identify potential "next Palantirs." Palantir has spawned a whole ecosystem in its wake, as evidenced by the success of former employees who have gone on to start their own successful defense tech companies. Sankar is driven by an existential fear of America's war-readiness and believes that more innovative and adaptable solutions are needed to ensure national security in the future. Counter arguments: Some may argue that Palantir's efforts to support and influence the defense tech industry could raise concerns about its potential for monopolizing the market. Critics may point out that Palantir's controversial partnerships with government agencies, especially ICE, raise ethical concerns and contradict its stated mission to protect Western values.

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The 𝘪𝘮𝘮𝘦𝘯𝘴𝘦 𝘴𝘪𝘻𝘦 of the collectibles market really shocked me…👀 $458 Billion in 2022 with a projected 12-year CAGR of 6.2% (𝘰𝘷𝘦𝘳 $1𝘛 𝘣𝘺 2033). 𝐓𝐡𝐢𝐬 𝐝𝐚𝐭𝐚 𝐬𝐡𝐨𝐰𝐬 𝐡𝐨𝐰 𝐞𝐱𝐩𝐚𝐧𝐬𝐢𝐯𝐞 𝐢𝐭 𝐢𝐬:: 📊 🪙 𝗡𝗙𝗧𝘀: $36 billion in 2023 🏟️ 𝗦𝗽𝗼𝗿𝘁𝘀: 60 million+ global collectors, a $227.2 billion market in 2023 🎮 𝗚𝗮𝗺𝗶𝗻𝗴: 3.3 billion global gamers… 80% of active console gamers and 54% of casual gamers like to have keepsakes of their favorite games 🕺 𝗔𝗰𝘁𝗶𝗼𝗻 𝗙𝗶𝗴𝘂𝗿𝗲𝘀: Market is ~$9.8 billion in 2023 🎬 𝗘𝗻𝘁𝗲𝗿𝘁𝗮𝗶𝗻𝗺𝗲𝗻𝘁: Toy/Animation segment currently at over ~$30B globally On top of this... ~16 million NBA fans consider themselves collectors ~20 million NFL fans consider themselves collectors 𝗦𝗽𝗼𝗿𝘁𝘀, 𝗺𝗲𝗱𝗶𝗮, 𝗲𝗻𝘁𝗲𝗿𝘁𝗮𝗶𝗻𝗺𝗲𝗻𝘁, 𝗮𝗻𝗱 𝗴𝗮𝗺𝗶𝗻𝗴 𝗿𝗶𝗴𝗵𝘁𝘀 𝗵𝗼𝗹𝗱𝗲𝗿𝘀 𝗮𝗿𝗲 𝘀𝗲𝘁 𝘁𝗼 𝘀𝗲𝗲 𝗵𝘂𝗴𝗲 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝘀 (𝗮𝗻𝗱 𝘄𝗮𝘆𝘀 𝘁𝗼 𝗰𝗿𝗲𝗮𝘁𝗲 𝗮𝗻𝗰𝗶𝗹𝗹𝗮𝗿𝘆 𝗿𝗲𝘃𝗲𝗻𝘂𝗲). 𝙈𝙤𝙧𝙚 𝙤𝙣 𝙩𝙝𝙞𝙨 𝙏𝙝𝙪𝙧𝙨𝙙𝙖𝙮.

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In the virtual hallways and water coolers, many LPs and allocators still argue about where the best places to put capital is in VC - 'specialist vs. generalist', 'big vs. small', 'emerging vs. established'. I was fortunate to share my thoughts with James Heath on Christian Dorffer's 'Defying the Odds' podcast last month. While I don't think there is one 'right' answer, as data becomes more transparent in a historically hazy environment, we can at least make more informed assessments. #venturecapital #alphaseeker #investment #emerging #allocators https://lnkd.in/egjKCmsP

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It is 𝘧𝘢𝘴𝘤𝘪𝘯𝘢𝘵𝘪𝘯𝘨 to see cable ➞ streaming, and now radio ➞ podcasts. • Bill Simmons’ The Ringer for $250 million • Kelce Brothers New Heights for $100 million • Roll-up Private Equity groups starting to enter in • Podcast aggregators like BlueWire, Playmaker, and Wave 𝗔𝗻𝗱 𝗳𝗿𝗼𝗺 𝗮 𝗺𝗮𝗰𝗿𝗼 𝗽𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲... Big tobacco innovated in a sly way: 🚬 - cigarettes to vapes - chewing tobacco to Zyns Now even food is innovating slyly using creators: 🍱 - gatorade to prime - lunchables to lunchly ───────── It's cool to see media 𝘪𝘯𝘯𝘰𝘷𝘢𝘵𝘪𝘯𝘨 through the amazing platform that sports are. And at the end of the day... 𝗔 𝗯𝘂𝗻𝗰𝗵 𝗼𝗳 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗲𝘀 𝗮𝗿𝗲 𝗳𝗿𝗮𝗴𝗺𝗲𝗻𝘁𝗶𝗻𝗴, 𝗰𝗿𝗲𝗮𝘁𝗶𝗻𝗴 𝗮𝗺𝗮𝘇𝗶𝗻𝗴 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗳𝗼𝗿 𝗰𝗼𝗻𝘀𝗼𝗹𝗶𝗱𝗮𝘁𝗶𝗼𝗻. 𝗧𝗵𝗶𝘀 𝗶𝘀 𝗲𝘀𝗽𝗲𝗰𝗶𝗮𝗹𝗹𝘆 𝘁𝗿𝘂𝗲 𝗶𝗻 𝘀𝗽𝗼𝗿𝘁𝘀 & 𝗲𝗻𝘁𝗲𝗿𝘁𝗮𝗶𝗻𝗺𝗲𝗻𝘁.

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I want to share a great interview on the Real Vision platform. Their Global Macro series allows laymen such as myself to quickly grasp how macro factors are driving underlying market sentiment. What really stood out for me was part of the conversation around populism, its impact on markets and how that should drive investment principles over the next decade. Populism is contextualized as a political and economic movement driven by widespread public dissatisfaction with the status quo, particularly among the middle and lower classes. This dissatisfaction has been building over decades, driven by rising inequality, stagnant wages, and a perception that the economic system disproportionately benefits the wealthy elite. This in turn has led to significant shifts in the political landscape, with both the right and the left adopting more populist policies. This alignment of both sides towards populist economic policies reflects a broader shift in political dynamics. This aligned political outlook has driven expansive fiscal policies, such as increased government spending and stimulus measures. It also points to a rise in protectionism and de-globalization as populist governments seek to prioritize domestic industries and jobs over global trade. This spending can drive inflation, especially when combined with supply chain constraints and labor shortages. The argument presented is that while these policies might provide short-term relief to the middle and lower classes, they do not address the root causes of inequality and may lead to further economic imbalances. And here's the kicker...….. Historical Parallel: 1968-1982 was another era marked by high inflation, political unrest, and economic volatility, during which time real returns on equities and bonds were significantly negative. Are we in a similar period, where populist policies could lead to long-term market underperformance, particularly for traditional 60/40 portfolios? But then how do we account for S&P being up 21% in 2024? The thesis here revolves around how populist policies tend to lead to increased fiscal and monetary stimulus during election years. It cites historical data showing that, despite overall poor market performance during populist cycles, election years often see strong market returns due to government efforts to stimulate the economy and secure votes. This creates a short-term bullish environment within a broader bearish cycle. These bouts of populist policies rarely die out quickly and the expectation is that we are somewhere in year 4 of a decade long cycle. And my key take away - rely less on passive investments and start to focus increasingly on active investment strategies and, in my personal opinion, bitcoin!! Perhaps think of cycling out some part of the portfolio from ETFs and Mutual Funds into actively managed mandates?? Have a great week ahead. #GlobalMacro #MarketSentiment #Populism #WealthManagement #MonetaryPolicy

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FOUNDERS: beware of non-market rights of first refusals (ROFRs). A ROFR is a contractual right to participate in a transaction before anyone else. It acts as a de facto veto. There are 2 types of ROFRs I see in term sheets: 1. ROFR on secondary 2. ROFR on acquisitions 1 is standard, 2 is not. A ROFR on secondary (1) is in the standard NVCA term sheet. It gives the company, and then major investors, the right to buy shares from an existing holder before they can sell those shares to an external buyer. It comes with a co-sale right which means that if investors don’t buy the shares, they can participate in the secondary sale on a proportional basis. The company and investors typically have 30 days to exercise their ROFR. This is an effective veto on secondary, which limits the flexibility of founders and employees in selling shares, but is not harmful to the company. ROFRs on acquisitions (2) are sometimes requested by investors who have a strategic interest in a startup. Perhaps they may want to acquire the startup in the future, so they ask for a ROFR on acquisitions to prevent their competitors from acquiring the startup. This means they have “first dibs” on buying the startup at any time. This can severely chill acquisition interest. Why would a potential acquirer spend time and money on diligence if they know they can be vetoed at the last minute by a competitor already on the cap table? They won’t. Think carefully before you agree to a ROFR on acquisitions, even if your company is in distress. Consult your board and counsel. It’s often better to accept a lower valuation with no ROFR on acquisitions than a higher valuation with one. — Did you find this post educational? You might enjoy my 10.4.24 free webinar on the option pool shuffle: https://lu.ma/f35acifg

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Today's Boring Biz (# 98): Pirate Ship Party Boat Tour - $4.0M Revenue - $3.5M Cashflow - $2.9M Ask Price - 0.8x Multiple - Baja California (Mexico) Note: We do not represent this deal, highlighting for informational purposes only for viewers What does the company do? 1. Pirate ship party tours 2. Themed entertainment experiences 3. Alcohol + merchandise sales Investment highlights 1. Exclusive liquor license to sell off dock 2. Equipment: 2x large ships + 1x speed boat 3. Seller ran similar business 1990 - 2013, longtime operator Investment risks/concerns 1. Owner dependency risk 2. Vulnerability to Mexico tourism laws 3. Owner health issues/ fire sale #SMB #ETA #finance #Cashflow #investing #search #searchfund #privateequity #microprivateequity #smallbusiness #venturecapital #vc #entrepreneur #business #businessowner #pirate #ship #party #boat #mexico Disclaimer: Hypothetical and illustrative only. Please do your own research (DYOR) or work with tax and legal professionals before making a decision. This video are intended for informational purposes only and does not constitute legal or tax advice, nor should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by SMB PE LLC or any third party.

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If you look at some of investment moves by FAs, the sports asset class is still a hidden gem. The majority still look at team ownership, but more and more folks are getting exposed to alts in sports in tech, media, sports betting, e-sports, and athlete mgmt. The kicker here- the vast majority, like… almost all, are at the accredited investor level. The interesting thing about this- the non accredited investors are those paying into sport on a daily basis. Buying tickets, paying for thier kids to be in sports, maybe paying into thier own rec league… Yet no meaningful ownership in sport itself. Frankly… probably not even knowing how to own in alts and the sports asset class. If only there was a fund to change and manage all that. 😉 Alts for all! Champion Venture Partners

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Brown and White Ventures places LP investment in a money market account where it grows with 5.25% interest before the fund invests in new companies. LP's can choose whether to re-invest those gains or access them. #BrownandWhiteVentures #venturecapital #VC

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✨ Seraphim Space Index Highlights: Taxonomy 🌌 🛰 Downlink: Historically, it has been one of the smaller investment segments. However, the current and previous quarters have seen multiple significant deals with $30m+ rounds (Armada, Second Front Systems, Skyloom Global and Skylo Technologies). As a result of these deals, the category has seen the most significant year-over-year growth in investment. Technologies related to communications and cybersecurity are key enablers for satellite communications, one of the largest markets addressed by space today. 🔭 Build: is seeing increasing investment. We attribute this to the growth in the space segment, creating a larger market opportunity for businesses providing the building blocks for the space economy in terms of satellites, payloads,  and software. This quarter saw Hadrian, which produces precision machined components, raise the second largest round at $117m. 🚀 Beyond Earth: No standout deals in Q1 24. The TTM period has seen significant activity in large rounds from Sierra Space, Axiom, True Anomaly and more. In H2 2023, this sector attracted the greatest investment as investors back the next generation of space infrastructure. The sector has shown significant growth compared to the previous TTM period. Read the full index here for more details - https://lnkd.in/e2vfgrk4

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More context as to what it looked like after Bill Hwang's Archegos' portfolio went from billions to bust "...Credit Suisse provided the first official peek into the flameout. A 172-page autopsy, released publicly on July 29, exposed a litany of management failures at Credit Suisse. But the embattled lender also says “it seems likely that Archegos deceived CS and obfuscated the true extent of its positions, which Archegos amassed in the midst of an unprecedented global pandemic.” This account also hints at a shift in Hwang’s strategy that has baffled outsiders. Archegos had grown rapidly by making huge bets on established FAANG stocks — blue-chip U.S. technology companies. But by last year, it was plowing money into risker bets like ViacomCBS and several U.S.-listed Chinese stocks, some of which had been targeted by short sellers. When the banks began dumping Hwang’s portfolio, these shares tumbled. And a more recent crackdown by the Chinese government has further decimated many of Hwang’s favored bets.... ....The size of Bill Hwang’s fortune remains uncertain. Former employees have been grousing that while they’ve been wiped out, Hwang, through private investments and other holdings away from Archegos, could still be a billionaire. One such investment was the seed money he poured into four of Cathie Wood’s exchange traded funds that have exploded in popularity thanks to their market-beating returns. Banks are haggling with Hwang’s team to figure out the size of his remaining wealth and whether they can claw back any of it. Credit Suisse has said it will seek to recoup money from Archegos and its related entities and individuals. The Swiss bank also flagged in its findings that Hwang’s firm took out more than $2 billion in excess margin from its account with the lender in the days before the collapse. The Department of Justice has been moving ahead with a probe into the blowup. At least one line of questioning has revolved around the communication between Hwang’s top associate Andy Mills and the lenders, and whether he may have misled them in the week of the crash, according to a person interviewed by prosecutors. “The assertion that Andy Mills or anyone at Archegos misled the banks during the week of March 22 is untrue in every respect,” a spokesman for Archegos said..." https://lnkd.in/eg-Vfnsh

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Andi Pitt, Managing Partner in ego death capital shares how issuing a token as an early-stage company works against you, rather than for you, in the long-term strategy of company growth. I completely agree, as well as how the vast majority of tokens issued have served only as early-exit liquidity for early investors. Have a listen:

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