Luceo Sports seeks $ 5 million investment for expansion
Head Coach Quin Snyder of Team LeBron Coaches at the 70th NBA All-Star Game of 2021 NBA All-Star Weekend on March 7, 2021 at State Farm Arena in Atlanta, in Georgia.
Jesse D. Garrabrant | National Basketball Association | Getty Images
Luceo Sports, a software company that digitizes and animates sports playbooks, is looking for investors to develop its activities. The company is based in Arizona and already has agreements with professional basketball clubs that use the product.
In an interview with CNBC, Andy graham, founder and CEO of Luceo, said he was looking for around $ 5 million to invest in sales and marketing. Luceo’s software allows teams to insert their playbooks and terminology, then transform the drawings into animations.
“That makes it into game animation, so you get that sequence and that timing instead of just a frame,” Graham said.
He added that Luceo could help young athletes learn playbooks faster and that teams can distribute them to newly acquired players as well. So, for example, if a National Basketball Association team conducts a mid-season trade, a team using Luceo can quickly create an ID and give the player access to digital playbooks.
“We are focusing on the educational aspect of the game,” Graham said. “And we remember that coaches are teachers and trying to give them good educational technology so that they can create explanations to reach digital learners today.”
Graham, 37, started Luceo in 2016 after spending time with data analytics company Synergy Sports and software company FastModel, which also makes money digitizing professional playbooks. He left FastModel in 2014 after identifying a void in the market.
“I realized how much technology had advanced over those years (working at FastModel), and I wanted to be a part of it all,” Graham said. “Ed-tech is a market that has exploded over the past two decades, and sport at all levels is just a learning and development activity.”
Luceo is software as a service business, and the company earns money from fees associated with subscriptions, additional services, and transaction fees. Subscriptions cost as little as $ 2 per month for users, while the top-tier business plan is $ 15 per month. the the program has an application, but registrations are only available through its website to avoid fees Apple takes digital subscriptions.
When asked about subscribers, Graham declined to reveal details, but added that around 150,000 people are part of the company’s “ecosystem”. Therefore, people who know and have access to Luceo. The company has deals with 11 NBA clubs, including seeded Utah Jazz, and three college teams.
Graham also did not disclose any income. He said pro clubs typically sign annual deals, adding that Luceo targets daily consumers with subscription prices. The plan is to attract Gen Z users (ages 6-24) and their parents as this demographic grows in a more digital learning environment. One of the features highlighted by Graham is a decision making game within the program. The activity allows athletes to practice what to do in critical game situations based on a team’s playbook.
Graham called Luceo the Rosetta Stone – popular language learning software – from sports.
“The most comprehensive digital learning platform for sports,” he said. “The more children there are who feel they understand the sport, or that the fans understand it, or the parents, the more likely they are to become involved.”
At Synergy, Graham said he had improved his skills in product design and business development, adding that the learnings were “fundamental to what I’m thinking about now.” The lessons will be essential for Luceo, as the competition is fierce. According to Grand View Search, the ed-tech market is expected to reach $ 377 billion by 2028. And again, FastModel is a competitor and already used by many basketball scouts.
The National Football League could help Luceo’s future growth. Luceo is positioning itself to target professional football clubs with its software and is currently working on digitized and animated football playbooks. Graham said he would start small, however, moving on to high school and college programs first.
Andrew Graham, Luceo Sports
Source: Luceo Sports
“This is where we’re going,” Graham said of continuing NFL business.
Luceo is gaining ground in sports and has been featured on NBATV. Sacramento Kings assistant head coach Alvin Gentry is also a supporter of the software. But to take the next step, Graham will have to convince investors of Luceo’s potential. It won’t be easy, but Graham says it’s part of the “fun challenge” of running a business.
When challenged to provide a quick pitch on Luceo, Graham said, “I’ve already built a business that the NBA and NCAA teams use twice. (Luceo) started small and went grown over the past five years so far, ”he added. “But I have confidence in what the market needs. I know how this business works.”