StellarAglo Investment Memo
Meera Ventures 08.12.2020
Summary
StellarAlgo is a B2B SaaS company that has built a platform that helps its customers organize, analyze, and leverage fan data from multiple online and in-person sources. StellarAlgo creates valuable insights by integrating data and machine learning to create fan profiles that allow organizations to segment and personalize their fan outreaches. Their software helps organizations engage and convert their fans in an ever-changing industry.
Funding: $2.3M
Stage: Seed
Product
Integrate: link directly to source systems to consolidate & centralize fan data.
Enrich: data is assembled into a single customer view and enriched by machine learning.
Segment: customer segmentation & attribute derivation help better understand the customer life cycle.
Measure: Add transparency with cohort performance analyzers.
Market
Thought leaders and innovators in the sports and live entertainment industry.
Fan obsessed organizations that are looking to personally connect and engage with their base.
Current customers include; Portland Trail Blazers, LA Galaxy, Vancouver Canucks, and 50+ more professional sports organizations.
TAM: The sports analytics market is estimated to be worth $4.6B by 2025 with a CAGR of 31.2%.
Competition
StellarAlgo competes in the off-field segment of the sports analytics market in addition to auxiliary data solutions in the sports and live entertainment industry.
Some examples include; Experfy Projects, Oracle, IBM, SAP, Sportradar AG, Tableau Software, and SAS Institute Inc.
Business Model
B2B SaaS, the leading customer data platform
Pricing is tailored to a specific account
Team
Founded by analytics experts and sports & entertainment professionals.
Vince Ircandia (Founder & CEO) has over 10 years’ experience in senior executive and business intelligence roles with multiple professional sports organizations.
Opportunities
Music: The music and sports industries have many synergies, and therefore also many similar pain points.
Retail: Many of the most successful brands will describe their customers as fanatics. Retail brands should track how they engage with fans inside and outside of traditional environments. I.e. are customers who shop in stores more likely to engage with new products?
Experience-based businesses: broadly speaking experience-based businesses are competing for your attention and money, the ones who know their customers the best have the best chance at excelling.
Risks
StellarAglo’s customer success is cyclical and largely predicated on a healthy macro-economic environment.
Limited customer base. in its current form, there are theoretically only so many sports organizations that StellarAlgo can sell to.
Rundown
In April Travis Scott hosted a virtual concert on Fortnite (a video game) which had a record 12.3 million attendees. For the NBA restart, the league wrapped the court in massive LCD screens promoting a virtual fan experience. The way we view and interact with our entertainment has already and will continue to change. We believe successful companies in this space will focus on the following;
Know who their fans are, where to find them, what they want, and how to personally connect with them is more important now than ever before.
API integration is crucial. Software platforms must easily be able to connect in order to effectively collect and visualize data.
Be creative. Fans have never had more options.
Learn Something
Company Profile: Crunchbase | Pitchbook
ProfitWell: “The SaaS Business Model: Stages, Pros & Cons, and Tools to Get Ahead”
MIT Technology Review: “The Pandemic will Change How We Watch Sports”
HCL Technologies: “What is API Integration” - An application programming interface (API) is a messenger that processes requests and ensures seamless functioning of enterprise systems.