Kyle Kuzma is many things. He is a forward for the NBA team Washington Wizards and the NBA champion in 2020. He is also a style icon — depending where you ask — and an angel investor. He is now also a consultant to a venture fund.
“I’m part of a new generation of the NBA,” Kuzma told TechCrunch in a phone interview. “For me, I’ve always been a go-getter and someone who is very interested in business and doing things just to build my family’s generational wealth. I think getting into the venture will just take it to a different stratosphere.”
Kuzma, 28, joined early-stage-focused Scrum Ventures in March as an adviser to help with the firm’s sports and entertainment fund, which is targeting $120 million. The partnership began in January when Kuzma’s agent Austin Eastman connected with Scrum CEO and partner Michael Proman. Kuzma said he was impressed with the Scrum team. Proman said the positive feeling was mutual.
“The thing about Kyle is that I personally didn’t even realize how extensive his interests in the venture space were until he was introduced,” said Proman, a former NBA employee on the venture development team. “Kyle is really interested in understanding the venture manual but more from the venture side.”
Proman said that Scrum’s sports fund, which Kuzma will help with, is a bit different from other sports-focused VC funds because it focuses on technology that could be useful for athletes or corporate sports clients and can also be applied in other industries. The Ozlo Sleepbuds are a good example. The company makes headphones to help people sleep better. While good sleep is incredibly important for athletes, it is important far beyond professional sports. Scrum participated in the company’s $6 million seed round earlier this year.
Scrum’s broad approach to sports technology makes Kuzma a good consultant, unlike another NBA player, Proman said, because Kuzma is already invested in many areas. Kuzma began angel investing in 2020 and has built a portfolio that includes soda alternative Lemon Perfect, which raised an additional $67.8 million in venture capital. consumer data company, Surf; and buy watches, Bezel.
“His investment portfolio is quite diverse. it’s not just your classic sports tech,” Proman said. “There are a lot of people out there who want to invest in what they do 24/7, and while they may be great at providing insights and analysis of these technologies, in many cases these are not technologies that are supported by businesses.”
Kuzma said he plans to be a hands-on investor, and while he knows a name like his could be a marketing boon for the companies he works with, he said he doesn’t want to just rest there and would rather use his status to help companies expand their network using its connections. He also believes his basketball background makes him a better fit as a VC because he’s used to working in a competitive environment where you can’t succeed unless you work as a team.
“I bring a competitive nature,” he said. “When you play sports at the highest level like the NBA, you play chess, not checkers. Are we smart? we are not just athletes. We are not just people who play sports and do nothing else.”
Kuzma’s presence has already proven beneficial for the company, Proman said, as working with an athlete like Kuzma has led to an increase in inbound interest for the company. Good incoming interest — clarified.
Kuzma isn’t the first NBA player to dabble in venture capital. Kevin Durant’s family office, 35V, invests heavily in startups. Steph Curry is Penny Jar Capital’s LP anchor. Former players like Andre Iguodala and Michael Redd have taken on more formal roles in the industry, too, starting their own companies, Mosaic and 22 Ventures, respectively. Kuzma is the latest NBA player to dive into the venture, but he likely won’t be the last for long.
“Joining Scrum Ventures is really exciting for me,” said Kuzma. “I want to promote my portfolio and just my reach in the VC world. As athletes, you are always told to diversify your portfolio as much as you can. This is my next iteration as an entrepreneur.”
