Golf enthusiasts who have dreamed of turning their passion into a profession may find valuable insights in starting a golf-related business. Old Tom Capital, led by Managing Partners Evan Roosevelt and Matthew Erley, specializes in investing in the golf industry and offers opportunities for accredited investors through their private investment group, Old Tom Venture Club. The duo emphasizes the importance of understanding the market, having a unique value proposition, and the ability to execute and scale in building successful golf businesses. They warn against the “golf goggles” problem, where passion for the game may cloud judgment on the viability of a business idea.
Companies like Arccos Golf and SuperSpeed Golf serve as examples of successful ventures in the golf industry, with each taking a different path to growth and success. Arccos leveraged advanced golf analytics and shot-tracking systems to enhance player performance and secure significant funding for scaling their technology. On the other hand, SuperSpeed Golf focused on grassroots approaches, quality products, and customer education to build a loyal following and reinvest profits for growth. The duo advises founders to validate their ideas beyond their immediate circle before seeking funding.
The equipment manufacturing space in golf presents challenges due to high production costs, thin margins, and the need for significant brand recognition. Old Tom Capital is cautious about investing in startup equipment brands as the competitive landscape favors established players with economies of scale. They suggest focusing on niche markets or innovative products that offer clear advantages to stand out in the crowded industry. Companies like Swag Golf have found success by offering high-end products and niche branding to build a loyal following.
The golf industry has experienced significant shifts, with the pandemic acting as a catalyst for increased interest in the game. The rise of off-course entertainment and golf technology has brought in new demographics, including younger and tech-savvy players. This trend provides opportunities for founders to tap into high-growth segments of the game. Looking ahead, the integration of technology, new formats of the game, inclusivity initiatives, sustainability practices, and appealing to the golf curious consumer are key trends expected in the next five to ten years.
Old Tom Capital focuses on investing in golf-related businesses that have the potential to scale and become $100M+ companies. They are particularly interested in off-course entertainment, companies targeting the golf curious consumer, software with broad market fit, women’s golf, international markets, agronomy tech, golf travel, and marketplace concepts. Ventures heavily reliant on traditional manufacturing or niche products without a clear path to broader market adoption may not align with their investment strategy.
For aspiring golf entrepreneurs, Old Tom Capital advises starting to build the business, validate ideas, and show traction and a strategy for growth. Creating progress and momentum is crucial in attracting investors, along with a thorough understanding of the market and target audience. A comprehensive business plan that outlines the opportunity to scale, path to profitability, and clear growth strategy is essential for seeking capital infusion. Momentum, scalability, and potential for market dominance are key factors that investors look for in new golf businesses.
In conclusion, turning your golf passion into a successful business requires strategic planning, validation of ideas, and a clear path to growth. By understanding market trends, focusing on niche markets or innovative products, and preparing a comprehensive business plan, aspiring golf entrepreneurs can attract investors and accelerate the growth of their business. Old Tom Capital emphasizes the importance of sustainability, inclusivity, and leveraging technology to tap into new demographics and opportunities in the evolving golf industry.
