The Opportunity

In 2022, the number of digital viewers of live stream sports in the US reached 57.5m. By 2025, it is forecast to exceed 90m – more than 25% of the population. This digital growth is not just limited to live streaming, but other assets, such as social media channels, where sports clubs and associations issue a continuous stream of content, from team news to match statistics, injury updates, and even player birthdays. This content is consumed globally by billions of followers.

For sponsorship and media purposes, these “digital assets” can collectively be the target of an extraordinary amount of brands’ online marketing spending. However, with these assets spread across various platforms, their management, and monetisation, present a huge challenge to organisations in the sports and entertainment industries. This is primarily because these organisations are unable to identify which assets are most valuable, what that value is and how to exploit it financially. This means that the potential value that can be extracted from these assets – in some cases worth up to hundreds of millions of dollars – remains unrealised.

Horizoom Digital S.L. (“the Company” or “Horizm”) is commercialising a software platform to solve this problem, helping organisations like sports clubs and other “Rights Holders” to simplify the monetisation of their digital assets and extract new income. Using Artificial Intelligence (AI), Horizm’s platform (introductory video below) enables the real-time tracking, valuation and packaging of a customer’s digital and social media channels. This newly created inventory can then be made available to brands for sponsorship purposes and monetisation through the Horizm
Marketplace.

At the end of 2022, Horizm was managing digital inventory with a value of c.€1.2bn across its c.140 clients based in 30 countries. These clients included the likes of Real Madrid, Inter Milan, Chelsea, Arsenal, and the Australian Open tennis, amongst many others across multiple sports (find out more: horizm.com/clients). Since launch in September 2022, the Horizm Marketplace delivered transactions totalling over €3.5m in its first few months of operation. Horizm was established in Spain in 2019 and has raised c.€3.7m in venture capital funding to date from leading European SportsTech investors, including the Dutch Sports Tech fund and Mindspring Capital. This included c.€2.1m in Seed funding in 2021 of which Growthdeck investors subscribed €750k.

The Board of Horizm (“the Board”) is now seeking to raise €6m at a pre-money valuation of c.€29m (c.€32.89 per share). Growthdeck is looking to secure up to €3m (with a minimum of €2.5m) of this fundraise, with completion subject to the receipt of Enterprise Investment Scheme (EIS) Advance Assurance. It is expected that this approval will be granted as the business has a formal UK presence that is believed to meet HMRC requirements. Based on the Company’s existing performance and future projections, Growthdeck’s modelling has assumed a target exit valuation of some €350m. If achieved, this exit valuation would provide investors in the current round with a c.10.7x ROI (15.4x post-EIS relief).

The value of the social media management market is forecast to achieve 23.6% annual growth to reach $US41.6 billion by 2026. With its commercially validated platform, Horizm is well placed to exploit this global, multi-industry, multi-$billion market opportunity. On this basis, the Board believes that Horizm may have the potential to achieve unicorn status (an exit valuation of $1 billion+).