From golf to fishing to pickleball, outdoor sports and recreation have boomed during the pandemic. But unlike some pandemic-driven trends (virtual conferences, Zoom happy hours), interest in the outdoors has stayed put.
According to the Outdoor Industry Association, by the end of 2023, outdoor activity participation will reach a record high of 175.8 million people, or 57% of all Americans ages 6 and older.
But the surge of interest has exposed a lack of innovation in many parts of the industry. From phone reservations to cash payments to a market dominated by legacy brands, the outdoor recreation category has presented many opportunities for entrepreneurs.
Over the past few years, entrepreneurs have built SaaS software for hunting and fishing guides. Startups have developed AI-based companies that find and book golf tee times. Kevin Durant has invested in a startup that helps people find pickleball courts. And the list goes on.
Meanwhile, VCs have shown interest, too. In 2019, VCs invested $48.6 million in 25 sports tech companies, according to PitchBook. In 2021, that number has grown to $949.26 million, with 53 companies investing. During VC winter 2023, investments totaled $189.71 million, with 43 companies investing. That’s a big drop from 2021 (when VC investment broke records across all industries), but the amount invested last year was still 290% higher than pre-pandemic levels in 2019.
Online acceleration
Benjamin Lazarov, co-founder and CEO of AnyCreek, a startup that builds reservation and backend business software for fishing and hunting guides, told TechCrunch that he would never have thought of starting a company before the pandemic. But Lazarov is looking to book hunting guides in Vermont in 2022.
He asked the cashier at a nearby Orvis for local guide recommendations, and she gave him a list of seven names on a piece of paper to call. As he called and left voicemails, he realized that everything else had moved online during COVID-19. Why would he still book a guided hunt over the phone? He then left his role as regional growth manager at Compass to start AnyCreek.
“I think if we were trying to start this business five years before COVID-19, it would have been impossible,” Lazarov said. “COVID-19 has definitely accelerated the adoption of technology. There’s a new generation of guides who are tech-first, mobile-first, and they’re running every other part of their lives online.”
Mallard Bay is another startup that offers hunting and fishing guides online. The Houston, Texas-based company launched in 2019, and the site has blossomed since lockdowns eased in 2021. The number of guides on the platform has grown from 19 to more than 100, co-founder and CEO Logan Meaux told TechCrunch.
Loop Golf, a startup that automates finding and booking tee times at public golf courses, was founded in response to the influx of new golfers and the difficulty for existing golfers to play. Matthew Holden, Loop Golf’s co-founder and CEO, told TechCrunch in June that the idea came when he realized that the post-pandemic surge in interest in golf wasn’t going away.
“It was getting harder and harder to find a tee time,” Holden said. “I spent hours looking at different options. I was getting fed up and my wife was definitely getting fed up.”
Behavior change
Lazaroff said that when the world had to move online, consumers learned to expect to interact with every business in that way. People don’t want to go back to simply booking things over the phone, and they want technology to do more for them in their leisure lives than it does for their work and personal lives in other areas.
It’s like a New York restaurant that updated its POS system to handle cashless transactions. “They’re never going back,” Lazaroff said. “Because the new POS system helps them run their business better. Think about how much more money they’re going to make.”
Scott Holloway, managing partner of Starting Line and investor in AnyCreek, said people, especially younger generations, are willing to spend more on experiences than physical things. This trend has been well documented in numerous surveys going back a decade. He added that companies building technology to power experience-based transactions are in a smart position.
Additionally, people often need to purchase new equipment and gear to engage in new activities.
A number of startups have sprung up to supply gear, clothing and accessories for this new hobbyist. Eastside Golf and Malbon Golf are both venture-backed startups that are looking to create clothing and accessories for the new golf fan who doesn’t want to look like Arnold Palmer from the 1960s. Nettie and Recess is a startup that designs pickleball paddles that don’t look like they came straight out of a retirement community in Florida.
Early venture-backed companies in the category, like campsite booking platform Hipcamp and glamping company AutoCamp, showed that there was consumer appetite for innovation in the category years ago. Now, more than a decade later, Holloway believes there’s still a lot more entrepreneurs can do.
There’s reason to believe he’s right. Rental services for items like canoes, kayaks and stand-up paddleboards still have websites that look like they were created in 2002. So do companies that offer services for everything from archery to ziplines. Many businesses in the outdoor recreation category still need some tech support.
“The market is huge,” Holloway said. “As Marc Andreessen famously said, ‘Software is eating the world.’ But this is one of the last consumer spending segments that hasn’t been eaten by software. Consumers are demanding it. It’s a huge market opportunity to ride that wave.”
