The Picks & Shovels: A Big Opportunity in Sports

Apr 10, 2025

∙ Paid

Every day, there seems to be a launch of a new sports league.

And while a handful will go on to succeed…

This has attracted builders who see the need to help support them with technology.

Pick-and-shovel companies will breed massive wins in sports.

Let’s Dive In 👇

The idea of “picks and shovels” comes from the California Gold Rush in the 1800s.

Thousands of people rushed west to dig for gold. A few struck it rich. Most walked away with nothing.

But the real winners?

They were the ones selling the supplies — the jeans, the picks, the shovels, the wagons, the saloons.

They didn’t care who found gold.

They just knew more people would keep coming...and all of them needed tools.

This strategy has played out repeatedly:

In tech: AWS, Stripe, and Twilio built platforms powering thousands of startups.
In crypto: Coinbase sold infrastructure to traders and projects.
In e-commerce: Shopify helped others build their brands instead of competing with them.
In AI: NVIDIA sells the chips, regardless of which app or model breaks out.

And now?

It’s happening in sports.

Here are some examples of companies executing on it (and a deeper dive into understanding “picks and shovels” within sports).

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