Women’s sports are gaining attention from investors as WNBA viewership soars to an all-time high during the WNBA Finals. Justus Palmer, CEO of Fortuna Investments, joins Josh Lipton on Ask the Trends to discuss why venture capital firms invest in women’s sports.
Ms Palmer outlines her view that sport is an emerging investment area and women’s sport is a particularly attractive investment opportunity. “This is a very unique asset class. Now you have the big four men’s clubs. Those are kind of the blue-chip stocks in your portfolio. Obviously, you have men’s baseball, men’s basketball, men’s football, and (the) NHL… When it comes to women’s sports, I don’t want to say it’s a venture or a growth investment, but some people think it’s undervalued.”
“Only 5% of Fortune 500 companies advertise in women’s sports. I actually think that’s a huge opportunity. The ceiling is high for this. And relatively speaking, the buy-in is It’s actually quite cheap. So it’s a great time to be an investor. Because the sky is literally the limit for them, for unique companies and assets and individual players and teams. It’s the perfect time to pay attention and support.”
“If you have ratings, you’ll have fans. Fans have tremendous voting power and political capital, and corporate sponsorships are common,” Palmer said.
She points out that the venture capital firm’s interest in women’s sports is “not a ‘let’s empower these people for a cause’ kind of thing like philanthropy or DEI.” These women are extremely talented. ”
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This post was written by Naomi Buchanan.