Innovation in Sports! SPORTS TECH TOKYO [2]Technology is transforming sports! Latest examples of sports tech
Takuya Miyata
Scrum Ventures
Nakajima Fumihiko
Dentsu Inc.
Dentsu Inc. and Scrum Ventures (San Francisco, USA) are launching the " SPORTS TECH TOKYO " World Acceleration Program, themed around "sports," for startups worldwide.
This series explores what technology brings to sports from various angles. This time, we invited Takuya Miyata, founder and General Partner of Scrum Ventures, who is well-versed in the U.S. startup scene, to introduce the latest developments in sports tech, a field still relatively unfamiliar in Japan.
"Play Sports" Technology Contributing to Performance
Nakajima: In the U.S., a massive market for sports business, how advanced is the adoption of technology?
Miyata: Cutting-edge technologies like AI and IoT are rapidly being introduced into American sports. Globally, investment in sports startups has grown more than eightfold over the past six years, reaching approximately $2.5 billion (¥270 billion) by 2018.
Nakajima: That's incredible growth. Japan still feels like it's just getting started, exploring how to integrate technology into sports. What examples exist in the U.S., a leader in sports tech?
Miyata: First, let's look at an example from Prevent Biometrics, under the "Play Sports" category, which gathers technologies beneficial to athletes.
Prevent Biometrics
https://preventbiometrics.com/
Miyata: While wearing mouthguards has become more common in various sports in Japan recently, the US has started pilot testing what you might call smart mouthguards. These incorporate impact sensors into American football players' mouthguards.
During football games, players who are tackled can hit their heads, and the accumulation of this damage can lead to concussions. This is a major problem facing American football.
By having players wear this "concussion detection mouthguard," it measures the level of head impact they receive. This data is then displayed in real-time on an app on the coach's device.
Coaches can now monitor a player's injury status and substitute them before a concussion occurs. Furthermore, in the unfortunate event of a concussion, the collected data can be shared with medical professionals to facilitate prompt and appropriate treatment.
Nakajima: Previously, coaches would verbally ask, "Are you okay?" or rely on gut feelings to judge whether damage seemed minor enough to allow continued play. Now, they can make precise judgments based on data. It feels like the game is becoming more sophisticated, with coaches checking players' physical condition via app during matches and strategizing about which players to substitute and when.
Major Japanese electronics manufacturers are also investing in this mouthguard, right?
Miyata: Yes, and it's not just electronics manufacturers. Many companies want to take on new challenges alongside sports startups. This is precisely the kind of example SPORTS TECH TOKYO aims to showcase.
Technologies for "Watch Sports" that upgrade the spectator experience
Nakajima: Next, in the "Watch Sports" category, what kind of sports tech examples are there?
Miyata: There's a service called "IdealSeat" that proposes a new way to buy tickets using technology.
IdealSeat
https://idealseat.com/
Miyata: For example, spectators visiting a baseball stadium each have different needs and purposes. There are children who bring gloves hoping to catch a ball that flies into the stands, passionate fans seeking a sense of unity with the players, or people who are less focused on watching the game and just want to relax while enjoying food.
IdealSeat possesses data on areas like "where balls are most likely to fly into the stands," "where players can be seen up close," and "areas near merchandise or food stands." It can suggest the optimal seats tailored to the ticket buyer's needs. It also analyzes which concession stands or restrooms tend to get crowded. For instance, families with small children could secure seats near relatively less crowded restrooms.
It already covers over 130 stadiums and can simultaneously analyze 450 million data points using its proprietary algorithm. In cases where IdealSeat was implemented for ticket sales, conversion rates reportedly improved by 96%, and sales increased more than tenfold.
Nakajima: Stadiums are indeed vast, so trying to find seats on-site makes it hard to know where facilities are located. Plus, seats where you can easily catch balls or get close to players enhance the experience. This seems applicable not just for sports, but also for music events and other entertainment.
Miyata: For sports teams, business opportunities extend beyond ticket sales to merchandise purchases, fan club memberships, and food/beverage sales. By offering seats tailored to attendees' needs—connecting "passionate fans" with "merchandise stands" or "food enthusiasts" with "concession stands"—teams can bring buyers closer to what they want to buy, expanding business opportunities.
Support Sports: Technology Connecting Athletes and Fans
Nakajima: Finally, "Support Sports." Sports have a strong element of engagement, like wanting to support your hometown or alma mater's team.
Miyata: Exactly. In the U.S., various online platforms are being developed to uncover engagement opportunities between local sports and sponsorships and facilitate matching.
Nakajima: In Japan too, services enhancing engagement with sports teams and athletes are gradually increasing. For example, ventus's "whooop!" digital trading card service uses the tagline "Become part of the team with cards." This means sales revenue is returned to the purchased team or athlete. It also boosts engagement through various elements like trading between fans and purchase perks from the team.
Such services can also limit card issuance to boost collectibility. Fans can feel like they're passionately supporting their favorite teams and athletes.
Hoop!
https://whooop.jp/
Miyata: Fan preferences are diversifying these days. By leveraging technology to expand beyond top teams into amateur sports, creating diverse touchpoints, I believe these services will continue to grow.
Regarding sponsorship, future sports can approach consumers not just by selling brands, but through various forms that include experiences. I feel this could create new connections between companies and consumers through sports.
Nakajima: Hearing Mr. Miyata's insights today, I was struck by how technology integration in sports is advancing. It reaffirmed my impression that sports tech represents a massive business opportunity capable of engaging diverse companies and stakeholders.
Miyata: While everyone understands that sports is a major business and that various technologies are needed in sports, the sports industry and sponsoring companies are still figuring out how best to incorporate cutting-edge technologies.
I believe that when startups with cutting-edge technologies like those introduced today enter this space, it will make it easier for sponsor companies to engage with sports, leading to significant changes in the sports business.
Nakajima: Exactly. We want SPORTS TECH TOKYO to function as that kind of "platform." Thank you very much for today.
Was this article helpful?
Share this article
Newsletter registration is here
We select and publish important news every day
For inquiries about this article
Author
Takuya Miyata
Scrum Ventures
Based in San Francisco, he manages a venture capital firm investing in U.S. tech startups. To date, the firm has invested in over 50 innovative startups across mobility, fintech, IoT, VR, commerce, and healthcare. Additionally, since 2018, he has launched a studio business supporting open innovation for large corporations. By maximizing the assets of major corporate partners representing various industries, the studio collaborates with startups worldwide to create new value.
Nakajima Fumihiko
Dentsu Inc.
At Dentsu Inc. Marketing Division and Sales Division, he was responsible for marketing strategy and implementation for domestic and international clients. After leaving Dentsu Inc., he worked at IMJ, where he managed the Internet Marketing Division, served as an officer at a subsidiary, and led the commercialization of CCC's T Point EC Mall. Rejoined Dentsu Inc. at the end of 2008. Currently engaged in business development, innovation support, and business investment with the company, clients, and partner companies utilizing cutting-edge technologies such as robotics, IoT, location data, and biosensors. Also involved in numerous startup support and collaborations. Recipient of awards including the Mobile Advertising Grand Prize and the Good Design Award.
