The basketball apparel industry is not immune to competition from companies outside of
Since its inception in 2010, POINT 3 has raised just under $5 million, with its last raise roughly two years ago, when it also brought in 7-figures of capital.
What may be most interesting about the Series A-1 capital is that it appears to be largely made to allow POINT 3 to pivot a bit away from simply being a basketball company. According to CEO Michael Luscher, the new investment is directly related to the extension of POINT 3's patented DRYV technology to categories outside of basketball.
"Since receiving our patent in 2014, there has been significant interest in POINT 3 from the investment community. After three consecutive years of triple digit percentage growth exclusively through direct-to-consumer channels, we have proven that POINT 3 has a place in the basketball apparel market, and that our patented DRYV Technology resonates with ballplayers," said Luscher. "This investment round allows us to scale up growth of the POINT 3 brand, and extend the reach of our DRYV Technology beyond the basketball court.”
The DRYV technology is related to an absorbent outer layer that has been applied to moisture wicking garments. POINT 3 has used the technology on basketball shorts and towels to date, but seeks to expand its application beyond the basketball court.
Future profits for POINT 3 could come through licensing agreements with apparel companies and manufacturers in unrelated industries, which may wish to incorporate the patented technology into their goods. Several of POINT 3's new investors will have active roles on its Advisory Board and likely push for new sources of revenue.
The recent Series A-1 infusion included involvement from Tim Brosnan, former Executive Vice President of Business at Major League Baseball; Bill Daugherty, former Senior Vice President of Business Development at the National Basketball Association; and Rick Burton, who was formerly the Chief Marketing Officer for the U.S. Olympic Committee at the Beijing 2008 Summer Olympics and currently the Syracuse University David B. Falk endowed professor of Sport Management.
The influx of capital will be used by POINT 3 to continue to grow the DRYV brand, which will include the development of a dedicated website, marketing materials and brand used guidelines for the DRYV technology. It will also seek to boost its intellectual property protection. Additionally, POINT 3 plans to add to its marketing, product design/development and operations teams, while expanding and extending the POINT 3 basketball product line.
According to Luscher, his brand experienced 136% growth from 2013 to 2014 and 109% growth is projected for 2014 to the end of 2015. Projected gross sales for 2015 are in the low seven figures.
Update (11/23 at 12:11 p.m. et): CEO Michael Luscher has advised me that Tim Brosnan is not an investor in POINT 3 Basketball.
Darren Heitner is a lawyer and the Founder of South Florida-based HEITNER LEGAL, P.L.L.C., which has a focus on Sports Law and Entertainment Law.
