Pro Weekly Update (4/15/2022) - Front Office Sports

April 15, 2022

Happy Friday!

Pro is back this week with an updated Deal Tracker and Scouting Report on influencer marketing, the creator economy, and digital commerce. We break down the impact that the creator economy and micro-influencers can have on shifting the global retail economy online. If you have any comments, please reach out to me at liam@fos.company.

Viral Nation & Growing The Creator Economy

Design: Alex Brooks

Creator Enablement and the Influencer Economy

Todd Boehly’s Eldridge Industries and Maverix Private Equity led a round that contributed more than $198 million to marketing firm Viral Nation.

Originally founded as an influencer marketing agency in 2014, the company has evolved to a full-service and technology-enabled company. Viral Nation currently touts an impressive roster of 500 global clients and, with the new round of investment from Eldridge, a $515 million valuation.

The company now encompasses a full-service digital and social agency, a marketing company, creator and athlete-influencer (think NIL) management agencies, and a full-service tech arm, among other verticals.

Since college athletes gained the right to profit off their name, image, and likeness in July 2021, Viral Nation has leaned heavily into the college sports space. According to Opendorse, more than 60% of NIL activities have focused on posting content. The opportunity within college athletics has been a key area of focus for Viral Nation as it looks to grow its services business.

Advancing the AdTech, Creator, and Influencer Markets

With the new round of funding, Viral Nation plans to accelerate the release of public software-as-a-service (“SaaS”) technologies powering internal operations, as well as introduce new AI-powered solutions to address opportunities driven by both growth in the creator market – currently valued at over $100 billion – and wider demand for responsible engagement and conduct across the rapidly evolving social space.

Enabling the creator and influencer market will be key to unlocking a $25 trillion retail market that’s becoming increasingly digital.

Currently, e-commerce makes up just $9 trillion of the total retail market. What’s more — the global advertising market (impacting companies like Alphabet, Facebook, Snap, Twitter, and Pinterest) is around $700 billion, with digital advertising only representing half that figure.

Want to learn more? Check out the full Scouting Report here.

ICYMI: Last week, we published another Scouting Report on the payments market. You can access that report and our other research at Pr o HQ.

Deal Tracker

This week’s Pro Deal Tracker highlights:

Epic Games, developer of gaming software and applications designed for gamers and game developers to publish and play immersive games, raised $2 billion of venture funding from Sony and KIRKB.
Kooora, publisher of online sports news and data in the Middle East, was acquired by Footballco for $25 million.
ReKTGlobal, provider of esports infrastructure services, reached a definitive agreement to be acquired by Infinite Reality for $470 million.
Viral Nation, provider of digital marketing services intended to create social media influencer campaigns for brands, received $198 million of development capital from Maverix Private Equity and Eldridge Industries.
A SHOC, maker of energy drinks offering nearly all-natural ingredients, raised $28.3 million of Series B funding from athletes including baseball stars Aaron Judge and Freddie Freeman, golfers Lexi Thompson and Brooks Koepka, NFL defensive lineman Chase Young, NASCAR driver Chase Elliot, and Pro Football Hall of Famer Michael Strahan.
Trace, a sports video technology company that records players’ activities on the field, raised $47 million of Series C venture funding in a deal led by Pelion Venture Partners.

Try out the full Deal Tracker.

Written by Liam Killingstad