Scrum Ventures Closes $68 Million Fund to Fuel Innovation in Sports and Entertainment Tech

Scrum Ventures, a venture capital firm with bases in San Francisco and Tokyo, has successfully closed its first sector-specific tech fund, the Scrum Sports & Entertainment Fund I (SSE). The new fund, which raised $68 million, focuses on investing in technology companies that drive growth within the sports and entertainment industries. However, the fund also aims to address broader market inefficiencies, supporting companies that can transcend the sports vertical and impact other sectors as well.

It is a new phase for Scrum Ventures, which previously raised four general-purpose funds that included investments in sports-related startups such as Zippin, Maestro, and LiveLike. While SSE will maintain a strong emphasis on sports and entertainment, it is set to adopt a broad approach within those sectors, targeting innovations with the potential to reach beyond traditional boundaries.

The Scrum Sports & Entertainment Fund I (SSE) has already successfully operated in the sports and entertainment sectors, investing in 16 innovative startups. These companies include Fever, a platform that enhances live entertainment discovery; TMRW Sports, which brings sports media and technology services to audiences; and Campus Ink, a merchandising platform catering to students and athletes

The SSE fund is led by Kazuhiro Kiyoshige and Michael Proman, two experienced experts with extensive backgrounds in sports and entertainment. 

The fund’s strategy revolves around megatrends driving the future of sports and entertainment, including rapid global expansion. According to PwC, the global sports and entertainment market is expected to reach $680 billion by 2028, opening up numerous startup opportunities. The globalization of sports has further expanded the potential market, making it an attractive space for companies that can engage a broad, interconnected audience. 

Tak Miyata, founder and general partner of Scrum Ventures, emphasized that Japan, in particular, offers unique growth opportunities, and the firm is well-positioned to leverage its regional connections to support portfolio companies’ expansion.

Proman highlighted that while the fund focuses on sports and entertainment, it takes a broader approach compared to traditional industry-specific funds. The fund has already deployed half of its capital across 20 investments in companies that span multiple industries, not strictly limited to sports tech. As the sports and entertainment sectors become increasingly integrated with general culture and lifestyle, SSE’s portfolio reflects this shift, with investments in areas like AI and intellectual property licensing, which Proman believes will play a critical role in the future of the industry.

The SSE fund’s limited partners include a range of prominent Japanese corporations and financial institutions, such as SBI Group, Oriental Land Innovations, SEGA SAMMY HOLDINGS, Sumitomo Corporation of Americas, and TV Asahi Holdings Corporation. Other partners include Nippon Television Holdings, MUFG Bank, WOWOW Inc., and KOEI TECMO Group. 

These strategic partnerships provide the fund with access to invaluable networks, resources, and industry expertise, further enhancing its ability to support the growth of portfolio companies in the global sports and entertainment markets.

Founded in 2013, Scrum Ventures has connected startups to the U.S. and Japanese markets. Focusing on helping companies scale globally, Scrum Ventures serves as a bridge between two major tech hubs, enabling founders to access world-class brands, customers, and technologies. 

Tak Miyata, founder and general partner, highlighted the explosive growth of the sports and entertainment sectors, particularly in Japan, and emphasized the fund’s unique position to capitalize on emerging opportunities such as college athletes, legalized sports betting, and community-driven platforms, which he believes will shape the future of the industry.