Qualtrics founder and Utah Jazz owner Ryan Smith launches a $1B fund aimed at connecting tech startups with sports and entertainment across 20 to 25 investments
Utah Jazz owner and Qualtrics cofounder Ryan Smith is teaming up with Accel pal Ryan Sweeney to launch HXCO …
Context & Ripple Effects
Ryan Smith’s move from operating Qualtrics to investing has precedent in the coverage: he eventually accepted backing from Accel and Sequoia after years of avoiding venture capital, a shift that connected him to major VC firms. He later participated in Awardco’s Series A, showing an earlier extension of his capital activity beyond Qualtrics through a Utah software investment.
HXCO formalizes that investor role alongside Accel’s Ryan Sweeney, but with a narrow mandate: a small portfolio of companies positioned between technology, sports, and entertainment. The fund pairs a large capital pool with Smith’s ownership role in the Utah Jazz and Sweeney’s venture-firm connection.
First-order effects
- HXCO becomes a new, concentrated source of funding for roughly 20 to 25 startups whose products can be positioned around sports and entertainment.
- Ryan Smith and Ryan Sweeney gain a dedicated investment vehicle through which to select companies and connect portfolio-building with their respective operating and venture networks.
Second-order effects
- Founders in the target market will face a funding option that may be especially valuable when distribution, partnerships, or credibility in sports and entertainment matter alongside capital.
- Other investors pursuing similar companies may need to compete not only on financing but also on the access to industry relationships and operating platforms they can offer.
Third-order effects
- If such funds continue to form, sector investing may increasingly be organized around investors who combine capital with control of, or proximity to, customer and distribution ecosystems rather than generalist funding alone.
- The model also concentrates influence over which startups gain access to major sports and entertainment networks, though HXCO’s eventual portfolio choices will determine how material that concentration becomes.
The trend: HXCO is part of a broader shift toward specialized venture funds that package capital with access to industry networks and operating assets.