Outdoor Sports Boom During Pandemic
During the pandemic, many people turned to outdoor sports and activities like golf, fishing, and pickleball. This trend has continued even after lockdowns, with outdoor participation reaching a record high of 175.8 million people, or 57% of all Americans aged 6 and older, by the end of 2023. This data comes from the Outdoor Industry Association.
Lack of Innovation in Outdoor Recreation
The surge in interest in outdoor activities revealed significant gaps in the industry. Many processes, such as booking activities or paying for services, were outdated, relying on phone calls and cash payments. This presented a golden opportunity for entrepreneurs to bring innovation to the sector.
Entrepreneurs and Their Innovative Solutions
In recent years, entrepreneurs have been busy creating new software and tech solutions for outdoor activities. For instance, some have developed software as a service (SaaS) for hunting and fishing guides, while others have used artificial intelligence (AI) to help people find and book golf tee times. Even famous basketball player Kevin Durant invested in a startup that helps people locate pickleball courts.
Venture Capital Interest
Venture capitalists (VCs) have also shown strong interest in this sector. In 2019, VCs invested $48.60 million into 25 sports tech companies, according to PitchBook. This amount skyrocketed to $949.26 million in 2021, although it dropped to $189.71 million in 2023 during a period known as the “VC winter.” Despite the decline, the 2023 investments still marked a 290% increase over pre-pandemic levels in 2019.
Bringing Outdoor Activities Online
One example of this trend is Benjamin Lazarov, the co-founder and CEO of AnyCreek. His startup builds booking and back-end business software for fishing and hunting guides. The idea for AnyCreek came to him in 2022 when he struggled to book a hunting guide in Vermont through outdated methods like phone calls and voicemails. Realizing that most services had moved online during the pandemic, Lazarov decided to create a more modern solution.
“My thought is that had I tried to start this business five years before COVID-19, no way,” Lazarov said. “COVID-19 definitely accelerated the adoption of more technology. There is a new generation of guides that are tech-first, mobile-first; they are operating every other part of their life online.”
Another startup, Mallard Bay, is also bringing hunting and fishing guides online. Based in Houston, Texas, the company saw rapid growth after lockdowns eased in 2021, expanding from 19 guides on its platform to over 100.
Innovative Solutions for Golf
Loop Golf is a startup that automates the process of finding and booking tee times at public golf courses. Co-founder and CEO Matthew Holden noticed the difficulty of booking tee times due to the increased interest in golf after the pandemic. “It became increasingly more difficult to find a tee time,” Holden said. “I’d be spending hours looking at the different options. I got fed up with it and my wife definitely got fed up with it.”
Changing Consumer Behavior
The pandemic forced the world to move online, and consumers now expect to interact with all businesses digitally. Lazarov pointed out that people no longer want to book activities over the phone and prefer technology to enhance their recreational lives, just as it does in other areas.
Scott Holloway, a managing partner at Starting Line and an investor in AnyCreek, noted that younger generations are increasingly spending more money on experiences rather than physical items. He believes companies that build tech to support these experience-based transactions are in a strong position.
New Gear and Equipment Startups
As people pick up new hobbies, they often need new gear and equipment. This has led to the emergence of startups providing gear, clothes, and accessories for these activities. For example, Eastside Golf and Malbon Golf cater to new golf fans who prefer modern styles over traditional ones. Nettie and Recess design pickleball paddles that appeal to a younger audience.
Long-Term Potential for Innovation
Early venture-backed companies like Hipcamp, a booking platform for campsites, and AutoCamp, a glamping company, demonstrated consumer demand for innovation in outdoor recreation years ago. Holloway believes there is still significant potential for entrepreneurs in this space.
“The market is massive,” Holloway said. “As Marc Andreessen famously said, ‘software is eating the world,’ but this is one of the last pieces of consumer spend that software hasn’t eaten. Consumers are demanding it. It’s a massive market opportunity to ride that wave.”
Many businesses in the outdoor recreation sector still operate with outdated technology, providing ample opportunities for new startups to make a significant impact.
