TXV Partners

It’s. All. About. The. People. At the core of TXV’s human performance investing is a deep and unwavering focus on people. In this video, Joshua Bonhotal, our Head of Human Performance Investing, explains why the foundation of any great venture starts with the individuals behind it. A focus on people fosters a strong culture, which leads to building exceptional teams—and ultimately, extraordinary results.

Excited to kick off a new series based on the fantastic research our TXV interns conducted this summer! TXV Summer Fellow, Nicole Nourse took a deep dive into the future growth of sports leagues. While the research showed that the key revenue drivers for sports teams and leagues are media rights and ticket sales—getting eyes on screens and fans in seats is still the name of the game—there’s more to the story! Teams are differentiating themselves to maximize the fan experience and bring even more value to their operations. Tune back in over the weeks ahead as we take a deep dive into these five key areas teams are using to set themselves apart: 1?? Capitalization of elite talent 2?? Strategic mixed-use real estate development 3???Value-added strategic partnerships 4???The brand value of today’s athletes 5???Globalization of sports efforts #SportsGrowth #FutureOfSports #TXVResearch

It’s easy to think that human performance is reserved for elite athletes, especially after watching the Olympics. But it’s much more than that. Human performance is just as crucial for our friends and family who need comprehensive healthcare during challenging times. In a recent conversation at HIMSS, Steven Pickett, co-founder of Tabia Health —a TXV portfolio company— shared how their platform is empowering healthcare professionals and patients to navigate complex treatment plans more seamlessly. By enhancing efficiency and communication, Tabia is driving better outcomes for both providers and patients, truly embodying what human performance is all about. Learn more at: www.tabia.health

We’re wrapping up TXV’s 6th annual Summer Fellows Program this week and it was one for the books! ?? Huge thank you to the following 2024 Fellows for their amazing work over the past 10 weeks: Nicole Nourse, University of Southern California Zach Tayor, Brown University Jack Vein, Washington University in St. Louis Lance Reaves-Hicks, Princeton University Each summer, we welcome students from top undergraduate programs to the team. Our aim is to support their growth not only as finance professionals but also as employees, students at their respective universities, and individuals with a vision for their future. Nicole, Zach, Jack and Lance each made valuable contributions to our firm’s efforts to shape the future and enhance human performance by investing in businesses that drive it forward. We are thrilled to welcome them as TXV Fellows Alumni. Onward! #TXVFellows #VentureCapital #Internship #HumanPerformanceInvesting

August has arrived and that means... football will be played THIS MONTH! ?? This brings the excitement of National Football League (NFL), NCAA Football, Fantasy Football, and all that comes with a new season. While we are talking football, let’s continue the conversation around “Does Wining Matter?” by looking at the dominant NFL team of late, the Kansas City Chiefs, and how their dominance on the field has altered (or maybe not so much) franchise valuation. Setting the stage: By categorizing NFL teams into large & small markets and examining their winning percentages & franchise values, TXV Associate Matthew Jester discovered some intriguing correlations… Key Insights: ??? Most losing teams since 2010 are in large market areas (10/16), while most winners are in small markets (10/16). ??? Among the top 16 teams by 2023 valuation, 10 are in large markets, but only 5 of these have winning records since 2010, indicating market size impacts franchise valuation more than winning does. ?? The top 5 winning teams (New England Patriots, Kansas City Chiefs, Green Bay Packers, Pittsburgh Steelers, and Baltimore Ravens) are all in small markets, with only the Patriots in the top 16 franchise valuations, suggesting market size matters more than success on the field. Kansas City Chiefs Case Study on Franchise Valuation: ?? Despite consistent success and having stars like Patrick Mahomes & Travis Kelece, the Chiefs’ franchise valuation has only moved from 20th in 2010 to 19th in 2023. ?? This highlights the challenge small market teams face in increasing their franchise value, regardless of their on-field achievements. In light of this, how do you think the dynamics of market size and winning affect the future of NFL franchises?!

Introducing two of the Levels Co-Founders, Sam Corcos and Josh Clemente! ???? Sam Corcos, CEO of Levels Health, is a serial entrepreneur who is revolutionizing metabolic health with the first real-time dashboard that offers personalized insights into how different foods affect your body. Previously, Sam founded CarDash, a Y Combinator-backed company, and Sightline Maps, a platform for 3D printing topographical maps. He has authored a technical book and co-authored a paper on oncology. Josh Clemente, Founder of Levels Health, is a mechanical engineer and CrossFit-L2 trainer. He led the development of life support systems at SpaceX, which began sustaining astronauts on the Crew Dragon spacecraft in 2020. Josh has also worked on Hyperloop technology and emergency vehicle rescue systems. He enjoys functional fitness, technology, and restoring motorcycles. Together, they founded Levels Health in 2019 to revolutionize metabolic health through continuous glucose monitoring (CGM) and data-driven insights. ?? Levels helps users understand how food and lifestyle choices impact their health with real-time data and personalized insights. ?? By using data analytics and behavioral science, Levels Health guides users to make informed decisions for better health outcomes. ???? The platform offers a seamless experience, integrating advanced technology with actionable insights for lasting behavior change. Follow Sam Corcos, Josh Clemente and Levels to learn more! #TXVPartners #VentureCapital #Founders #HealthTech #MetabolicHealth

Gametime Conference 2024??? Big thanks to Josh Childress and Romeen Sheth for hosting another world-class event for athletes and investors in Newport Beach, CA this summer! It was fantastic for TXV to attend again and share some of what we’re seeing across the sports landscape.

The future of Sports Tech: Just how far can AI and immersive technologies drive analytics and fan engagement? Where is health and wellness tech headed next? This was a panel TXV Vice President, Jessie Harris, recently had the privilege of hosting at the inaugural SEICon Las Vegas gathering for Sports, Entertainment & Innovation leaders. Ashley DeWalt with The Collectiv, Alysse Soll with underdog venture team, and Ami Galani with Tipt Ventures participated in a great discussion around future trends in Sports Tech, predicting growth in AI-driven performance analytics, enhanced fan engagement through immersive technologies, and health and wellness tech, while also addressing challenges like market saturation and regulatory hurdles. It’s conversations like these that get us excited about the future, showcasing both the opportunities and challenges in this rapidly evolving industry.???

At TXV Partners, we’re passionate about partnering with founders who are pushing the boundaries in health, tech, and sports.??? Our mission is to support visionary entrepreneurs driving innovation and growth in these industries. Each investment we make is backed by the belief that a company will redefine its space, technology, or market for good. We want to empower founders who are on a mission to change the lives of everyday consumers. If you’re building in this space (or know someone who is), connect with us! We consider it a tremendous privilege to advance these industries together. https://www.txv.partners/

As teams approach playing their 75th game this MLB season, and with the All Star break just under a month away, we are back to explore the question “Does Winning Matter?” in a case study with the Houston Astros… ?? From 2007 - 2014, the Astros had an average regular season winning percentage of 41.8%. ???? Following the Astros famous “Killer B’s” era of the early 2000s, the team was dismal during this 2007 - 2014 time period. TXV MBA Associate and Houston-native, Matthew Jester remembers going to games all the time as a kid because tickets were so cheap. There were so few fans in the stadium that he could move all the way up to right behind the dugout without consequence. One game he went to even had less than 1,000 people in attendance. ?? In 2011, long time Astros’ second baseman Jose Altuve made his MLB debut, and a year later, the Astros drafted shortstop Carlos Correa #1 overall. In 2014, George Springer appeared on the cover of what became a famous Sports Illustrated feature unpacking the significant minor league development experiment the Stros’ were in the midst of... In 2015, the Astros finally secured a winning record, and made their first playoff appearance in 10 years. In 2016, Alex Bregman made his MLB debut, and in 2017, the Astros won their first ever World Series. The Astros have not missed the playoffs since, winning another World Series (2022) and appearing in two more in 2019 and 2021. The Astros 2017 sign stealing scandal certainly dominated headlines and muddied the waters of this unbelievable franchise rebuild, but the Astros return to winning and its effects financially is where we camp out today: - Largest jump in YoY franchise valuation: 50.9%. This occurred in 2015, the year the Astros started winning again and appeared in the playoffs for the first time in 10 years. - This growth rate was sustained for 3 years, which was further propelled by their first World Series championship in 2017, two years later. - Despite having to deal with a Regional Sports Network media rights deal, which paid the Astros closer to smaller market teams like the Brewers rather than that of the Yankees or Dodgers, the Astros have grown to become the 11th highest valued MLB team as of 2023. - Astros Revenue growth rate pre-winning (2007-2014): 11.3% vs. Revenue growth rate post-winning (2015 - 2023): 19.0% - Franchise Valuation growth rate pre-winning (2007 - 2014): 15.0% vs. Valuation growth rate post-winning (2015 - 2023): 31.3% So, does winning matter? It is hard to argue with what the on field success of the Astros has done to the overall franchise’s valuation. Can the Stros’ keep it up? Or has their era come and gone?