(Bloomberg) -- Sports league organization platform Volo Sports has attracted a $21 million investment from Bluestone Equity Partners to further its expansion, including through acquisitions.
Volo Sports is the largest provider of social and recreational sports events in the US, organizing corporate and adult leagues as well as youth teams, according to a statement reviewed by Bloomberg News.
More than 500,000 players have registered on the company’s platform for soccer, basketball, volleyball and softball teams in cities such as New York, San Francisco, Boston and Denver, among others. The site hosts leagues, tournaments and events for those sports, as well as for bowling, pickleball, dodgeball, kickball and even bar games.
The company, which started in 2010 as a bocce ball league in Baltimore, plans to use Bluestone’s investment to drive expansion in existing and new markets. The company’s earlier investors include Manhattan West Asset Management, which invested an undisclosed amount in April, and San Diego Regional Economic Development Corp., according to data provider PitchBook.
The deal is the sixth investment for Bluestone from its inaugural $300 million fund launched last year. The New York-based private equity firm is focused on sports, media and entertainment. Bluestone partner Walker Brumskine will join the board of the Volo Sports as part of the investment, according to the statement.
The business of recreational sports has been underdeveloped and highly fragmented and is ripe for consolidation by Volo Sports, said Bobby Sharma, founder and managing partner of Bluestone.
“It’s a significant revenue business and it’s the largest player in the sector with a very long tail of fragmentation that is a part of our investment thesis,” Sharma said in an interview. “We’re looking to grow revenue and value through consolidation and also by investing in people, technology and operations, but primarily there is a massive M&A opportunity here that we will enable.”
The investment comes as participation in recreational sports and related activities has increased to about 79% of Americans, according to Sports & Fitness Industry Association research cited by Bluestone. Pickleball alone jumped to 13.6 million participants last year, more than double the number in 2022.
Part of the success of Volo Sports is that it has a sports platform that can be “all things to all people,” creating a strong sense of community among participants, Sharma said.
“It’s just become one of those brands that puts a smile on people’s faces,” he said.
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