Growing Sports Business: Stadia Ventures

Cutting Edge Sport curator Joe Favorito speaks to Tim Hayden, co-founder of Stadia Ventures, on the rise of innovation in sport technology and what he looks for in the next big thing…

The explosion of innovation in all things sports business and technology has created a gold rush for new ideas. However like the gold rush, many chase dreams of financial success only to leave with worthless pieces of lead, and sometimes, ideas stolen or good concepts that never reach maturity because of bad business planning. Into that void has come any number of companies and even Universities looking to help the best of the best. Recently the Los Angeles Dodgers launched an incubator program with R/GA to help a select number of companies venture west to try and grow.

Last week another accelerator program came to the forefront, Stadia Ventures based in St. Louis. Stadia was co-founded by Tim Hayden, director of St. Louis University’s Center for Entrepreneurship and Art Chou, a Chou, a former Rawlings Sporting Goods executive with the idea that not all good sports business ideas live on the left or the right coast.

We caught up with Hayden to explain the business, its differentiators, and why St. Louis.

Explain the goal of the “Accelerator” vs. a “Shark Tank,” a “Hackathon,” or an “Incubator?

An incubator is a hotel that houses entrepreneurs (individual startups or accelerator companies). Meanwhile the accelerator is the mentoring and educational program to give the startups a better chance to succeed.

An accelerator is like an executive MBA program for startups. However, instead of a degree, the ultimate goal is that the cohort company achieves a few major milestones during the 10-16 week immersive boot camp. An accelerator will pick winners and invest in them like Shark Tank…but mentor the winners like The Voice.

What type of business are you looking for?

Stadia Accelerator is looking for established startups in the sports business space. They must have a product or service, traction and they must be generating revenue. We want them to have proven that there is a market for the solution to a pain. We focus on companies in Software/Apps, Big Data, Equipment, Apparel, Training, Nutrition, Gaming and Fantasy. However, we will look at any company that can help solve pain in the sports business space.

How have you attracted investment in the project and what are they looking for?

Unknown to a lot of people, St. Louis has always been a breeding ground for a lot of global, senior-level sports business talent. When you have the #1 global sports sponsor (Anheuser-Busch) in St. Louis, it’s to be expected. And that audience has always been interested in giving back. They want to see St. Louis become the Sports Innovation Hub. We joke that in 1904, St. Louis was the epicenter for Business (1904 World’s Fair) and Sports (1904 Olympics). So why can’t we be the epicenter again?

However, our investors also understand that this is not an ego play or a community play.

This must be a smart business investment with the expectation of legitimate returns. It just so happens that this investment is in the sports business space.

And we tell our investors that we will only accept “smart money,” which are those that are familiar with the sports business space. We find that these people have a knack for picking winners in this space.

What is the end goal in say, two years, with the project?

We’re in this for the long haul. However, in two years, we’d love to have 20 established startups that have grown and are still engaged with us helping to mentor future startups in our Accelerator.

Success for Stadia Ventures is defined as Do Good. Do Well.

Doing good means that we are achieving financial success for our cohort companies and the sports business ecosystem. But, doing well is a societal success. Did we help to make the founders better people? Did we help to get products and services into more people’s hands to solve their pains? Did we help the industry and our partners become more innovative? Did we connect good people with each other? And finally, were we able to establish a stronger ecosystem.

If we can say we have a stronger and smarter sports business ecosystem, we will have succeeded. But it will take time. We’ve been working on creating a stronger entrepreneurial ecosystem in St. Louis since 1764.