Lightspeed formalizes deal-making program at Formula 1 races

Lightspeed Venture Partners, a venture capital (VC) firm, has established a formal program with the entity that owns Formula 1 to facilitate business deals for its portfolio companies. The program operates across three races in U.S. cities: Austin, Las Vegas, and Miami. The initiative represents a shift in how investment firms approach networking, moving away from traditional founder retreats toward high-density sporting events. The F1 paddock—the restricted area at a race track where teams and VIPs congregate—has increasingly become a popular venue for startups and investors to strike deals.

According to Josh Machiz, the CMO of Lightspeed Venture Partners, the program was created in response to consistent feedback from founders. Machiz noted, “The consistent ask from founders was always the same, ‘help me meet more buyers’” rather than attending another retreat. Instead of traditional gatherings, the firm is leveraging the concentrated presence of corporate executives at F1 races. The paddock environment allows startup founders to connect directly with chief information officers, chief information security officers, and chief executive officers in a smaller, more interactive setting.

The program has already yielded commercial results. During the Miami race in Florida, Lightspeed brought 10 portfolio companies to the event. According to Machiz, the program helped portfolio companies close deals, including a blockchain company that reached a handshake agreement and an AI infrastructure startup that closed two deals. Some of these connections were facilitated through introductions by the Aston Martin Aramco F1 team, which partners with Lightspeed to explore new technologies. Farooq Malik, the founder of Lightspeed portfolio company Rain, confirmed he closed a deal, connected with a prospective client, and met another founder whose product he plans to use as part of Rain’s enterprise resource planning (ERP) software.

The integration of technology and finance into Formula 1 has accelerated. Hannan Happi, the founder of climate startup Exowatt, noted that the influx of tech brands has drawn corporate executives to the sport. Private equity (PE) and VC firms have also taken direct financial stakes, such as Dorilton Capital’s 2020 acquisition of Williams Racing and a 200-million-euro investment into Alpine by a group of backers. Lightspeed plans to continue the program at the remaining U.S. races, including the Las Vegas race in November, and intends to expand the program to founders at England’s Silverstone circuit over the three-day race weekend. Investor Immpana Srri noted that the high cost of entry to these paddock spaces serves as a natural filter, ensuring that attendees have the capital, deal flow, or track record to justify the expense.

Why it matters

The F1 paddock is increasingly serving as a high-density networking hub for venture capital firms and startups to facilitate enterprise deal-making, moving beyond traditional founder retreats.