Sportstech Promises to Be a Boon for Balkans Economies after Investments
Sportstech is a term that describes the use of technology and innovation in sports, including wearable devices, data analytics, artificial intelligence, virtual reality, and blockchain. In the Balkans, we see a growing and promising industry as many companies and startups develop and offer solutions for athletes, fans, coaches, and sports bodies.
To understand what this could do for the area’s economies, it is worth looking at a recent report by Game Changer Analytics, which chronicles the rise of the industry and highlights the region’s current and potential achievements.
But before that, some context!
The Lead-Up to the Present
It is worth looking back to understand the significance of the sports tech evolution in the Balkans. According to a report by the World Bank, the Balkans, especially the Western economies in Albania, Bosnia & Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia, were severely hit by the 2008 economic and financial crisis and struggled to return to pre-crisis growth rates seen after the armed conflicts of the 90s.
The region also felt multiple shocks in 2022 and 2023, including the fallout of the Russian invasion of Ukraine, higher energy and food processes, tightening financial conditions, unfavorable weather conditions, and substantial uncertainty.
The region showed resilience and recovered faster than expected, with support from the European Union, the International Monetary Fund, and other international partners.
The sports tech industry has emerged from this journey as one of the promising sectors that can contribute to the economic development and diversification of the Balkans.
It is worth mentioning that Albania, Montenegro, North Macedonia, and Kosovo do not have well-developed sports and sportstech markets. Professionals and enthusiasts often look to external products to reduce unnecessary investment risks in their sports.
A Closer Look at the Leading Countries and Sectors
According to the Game Changer Analytics report, the Balkans have close to 300 sports tech startups that have raised $248 million in investment in the past six years. How does that break down when you look at the different countries and sectors in the region?
Let’s find out.
Prominent Countries
According to the report, Romania is the leader of the Balkan Region in terms of volume of venture deals. Of the $248 million in total investments in Sportstech since 2015, Romania accounts for $199 million. The other countries in the region break down as follows:
- Slovenia- $28.5 million
- Croatia- $13.7 million
- Bosnia & Herzegovina- $2 million
- Bulgaria- $1 million
- Greece- $0.2 million
Between 2017 and 2023 (when the report came out), there were a reported 52 venture deals executed. Croatia leads the pack with 33%, followed by Romania at 29% and Bulgaria at 27%. The other countries in the region constitute the remaining 11%.
Compared to the number of European deals, the Balkans account for 5%, leaving room for growth.
Prominent Sectors
The report identified the following sectors as the most dominant in the region:
- Esports
Of these sectors, the fastest growing are esports, gaming, and betting are the most popular and lucrative sectors, a phenomenon echoed in emerging markets around the world. They account for 60% of the total number of startups and 80% of the total funding.
Some of the most successful startups in this sector include Sportening, a data-driven platform for sports betting and media backed by SportyCo, a blockchain-based crowdfunding platform for sports, and the Esports Balkan League, a regional league for Fortnite.
- Fitness and Wellness
This is the second-largest sector, with 20% of the total number of startups and 10% of the total funding. It includes startups offering personal health, nutrition, fitness, and wellness solutions. Some of the most notable startups in this sector include ANI BIOME, AYO, SanoPass, and more.
- Sports Media and Content
This sector has the third-largest share of the pie, with 10% of the total number of startups and about 5% of the total funding. Here, you will find startups offering solutions for creating, distributing, and consuming sports-related content.
Some of the successful examples in this sector include Elevien and Hyperhuman.
- Sports Innovations
This sector has the same share of the sports tech pie in the Balkans as the sports media and content segment. It includes startups offering solutions for improving sports performance (Ubitrack, Talentive, Rolla, etc.), management, training, coaching, and fan engagement (Fight Scout, Yepp, LEAP, etc.).
- iGaming
iGaming is part of sports tech that involves technology and innovation in online gambling activities, including sports betting, lottery, casino games, bingo, and poker. In the Balkans, iGaming activities, especially online casinos, are regulated by different laws and policies, depending on the country.
Some countries that have legalized it include Montenegro, Croatia, Serbia, Romania, and Bulgaria. Turkey, Albania, and Bosnia & Herzegovina all banned or restricted it.
What Does the Future Look Like for the Balkans in Sportstech?
The sports tech evolution in the Balkans can significantly benefit the region, including creating jobs, enhancing skills, attracting investment, fostering innovation, improving health & well-being, boosting tourism, and increasing social cohesion.
The sports tech industry can also help the region integrate with the European Union and other global markets through compliance with the regulations and standards of these markets.
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