Matt Howard
Named to the Forbes 30 Under 30 for Sports Class of 2024, Matt Howard is a Principal at KB Partners, a venture capital firm focused on earlystage investments in sports, media, and entertainment tech. He joined the firm in 2022 with a background in finance and sports. Howard holds a B.S. in Economics from The Wharton School at the University of Pennsylvania, where he was a team captain and All Ivy League player. In 2017, he received a South Carolina Senate Resolution for his basketball achievements.
From Sports to Venture Capital: My Journey
Growing up in Columbia, South Carolina, I attended AC Flora High School, where my passion for sports earned me recruitment offers from Ivy League schools. While athletics were a central focus, I also prioritized academics, driving myself to pursue both basketball at the University of Pennsylvania and finance at the prestigious Wharton School.
As I progressed from high school to college athletics, I realized there was a significant business aspect to sports—more than just the games themselves. This sparked my interest in the intersection of sports and business that motivated me to acquire new skills for my future career in venture capital.
The Journey That Shaped My Passion
My journey began with a role as a financial advisor in private wealth management, where I gained valuable exposure to public equities and fixed income markets. During this time, I also developed my sales knowledge, which proved invaluable in my later career. After transitioning to a more analytical position at Capital One in Dallas, I was managing a $500 million portfolio that included large retailers, manufacturers, and sports entities. It was at Capital One that I realized my true calling—sports.
This led me to Chicago, where I joined Keith Bank’s sports and technology venture capital firm in Highland Park, Illinois. The team there was a great fit, and I’ve been with the firm ever since. Our team consists of six people, including four partners, and a chief administrative officer. In my role as principal, I bare many responsibilities, like producing investment memos, negotiating deals, sourcing new leads, and serving as a board observer on various projects. Specifically, I now assist portfolio companies in any way I can. It’s been a rewarding experience that combines my passions for finance, sports, and venture capital.
Adapting to the Surge of AI technology
In today’s venture capital landscape, there’s no denying the significant focus on AI. A closer look at the industry reveals that large AI deals are dominating the numbers when it comes to funding amounts. While the total dollar value is rising, the actual deal volume has been on the decline over the past two years, largely due to these massive AI investments. It's essential to acknowledge this shift.
There's concerning data regarding the transition from early-stage investment to the next stage of investment for scaling—Series A. Only about 17% of companies that raised funds in 2022 have managed to reach a Series A, a sharp drop compared to previous years. Several factors contribute to this shift: IPO markets remain largely closed, and mergers and acquisitions (M&A) activity has slowed. These challenges highlight a shifting investment landscape where only the most resilient and strategically positioned startups successfully secure Series A funding.
The Evolving Landscape of Sports Tech
The valuations that some AI companies are commanding are eye-opening, and if the technology lives up to the hype, it could truly transform the industry. Within the sports sector, there’s hope to see more private equity firms and other acquirers recognize sports tech as a viable asset class. It’s crucial for them to actively support the space.
One of the reasons M&A activity has been slower in this sector is that larger tech players haven’t been targeting it as much recently. Many sports tech startups have had to exit to other sports tech entities, but it would be great to see more exits to private equity firms or major tech companies like Google, Alphabet, or Meta. In this regard, a more diverse and healthy exit landscape would be a positive development for the industry.
Guidance for Emerging Business Leaders
My advice to entrepreneurs is to be bold in the way they operate their business, shape their vision, build their projections, and stand by what they truly believe in. Pitch with conviction, because I've often found myself in meetings where it's clear that the founder doesn't believe in their own pitch. When it's clear that a founder is fully invested and passionate, that's when you know you've found someone special.
At KB Partners, we look for founders who are not just driven by the desire for success or financial gain but are deeply committed to their business and its purpose. At the end, it's that commitment to the process that leads to a business you can stand by. That's the kind of entrepreneur I would encourage.
