Kyle Kuzma is many things. He is a forward for the NBA Washington Wizards and the 2020 NBA champion. He’s also a style icon – depending who you ask – and an angel investor. Now he is also an advisor to a enterprise fund.
“I’m part of the next generation of the NBA,” Kuzma told TechCrunch in a phone interview. “I have at all times been a hustler and a one who is very interested in business and doing things just to build generational wealth for my family. I think taking a risk will only take you to one other stratosphere.
Kuzma, 28, joined early-stage startup Scrum Ventures in March as an advisor helping with the company’s $120 million sports and entertainment fund. The collaboration began in January when Kuzma’s agent, Austin Eastman, was paired with Scrum managing director and partner Michael Proman. Kuzma said he was impressed with the Scrum team. Proman said the positive sentiment is mutual.
“The thing about Kyle is, I personally didn’t even understand how broad his interest in this space was until I was introduced to it,” said Proman, a former NBA staffer on the business development team. “Kyle is really interested in understanding the venture playbook, but more from the venture side.”
Proman said the Scrum sports fund that Kuzma might be helping is a bit different from other sports-focused VC funds because it focuses on technologies that might be useful for athletes or corporate sports clients, and also has applications in other industries . An excellent example is Ozlo sleeping plugs. The company produces earbuds that help people sleep higher. Although good sleep is extremely essential for athletes, it is not only essential in skilled sports. Earlier this 12 months, Scrum participated in the company’s $6 million seed round.
Scrum’s broad approach to sports technology makes Kuzma a good advisor unlike any other NBA player, Proman said, because Kuzma has already invested in several sectors. Kuzma began angel investing in 2020 and built a portfolio that included soda alternative Lemon Perfect, which then raised an additional $67.8 million in enterprise capital; consumer data company Surf; and watch the market, Bezel.
“His investment portfolio is quite diversified; it’s not just classic sports technology,” Proman said. “There are a lot of people who want to invest in what they do 24/7, and while they may be great at providing insights and analysis on these technologies, in many cases these are not technologies that you can afford with a big undertaking.”
Kuzma said he plans to turn into a hands-on investor, and while he knows a name like his might be a marketing boon for the firms he works with, he said he doesn’t want to stop there and would slightly use his status to help firms grow their network using his connections. He also believes that his experience playing basketball makes him a good candidate for VC because he is used to working in a competitive environment where you can’t succeed unless you’re employed as a team.
“I have a competitive nature,” he said. “When you play a sport at the highest level like the NBA, you play chess, not checkers. We are smart; we are not only athletes. We are not only individuals who play sports and do nothing else.
Proman said Kuzma’s presence has already proven helpful for the company, as working with an athlete like Kuzma has led to increased interest in the company. Good incoming interest, he explained.
Kuzma is not the first NBA player to get involved in enterprise capital. Kevin Durant’s family office, 35V, invests heavily in startups. Steph Curry is the predominant album of Penny Jar Capital. Former players equivalent to Andre Iguodala and Michael Redd have also taken on more formal roles in the industry, founding their very own firms, Mosaic and 22 Ventures, respectively. Kuzma is the latest NBA player to take that risk, but he probably won’t be around for long.
“Joining Scrum Ventures is really exciting for me,” said Kuzma. “I want to expand my portfolio and just increase my reach in the VC world. As athletes, they always tell you to diversify your portfolio as much as possible. This is another facet of my personality as an entrepreneur.”