Fueled by Finance: How VC is Shaping Formula 1’s Future
By Reece Apgar ’25, Associate
Formula 1 is the pinnacle of motorsport; with high speeds, roaring engines, state-of-the-art technology, and the large price tags attached to the sport. While most of the revenue comes from sponsors or TV viewership, there is a new driver in team funding: venture capital firms. In particular, Aston Martin Formula One has filled a new seat when it comes to financial backings.
In September of 2024, Aston Martin Formula One made an undisclosed multi-hundred million dollar deal with venture capital funds Accel and HPS Investment Partners, increasing the company’s value 44%, from $1.46 to $2.6B. While Aston Martin is over one hundred years old and isn’t a “start-up” per se, they only recently entered F1 back in 2021. Combined, the two companies now own a 20-25% stake of the holding company, AMR GP. HPS Investment Partners’ primary initiative is to refinance the racing team’s debt after having built a new headquarters in Silverstone. While most investors find small companies with a high probability of market traction, Accel sees a unique opportunity in this established Formula One team.
Since the launch of Netflix’s Formula One: Drive to Survive in 2019, viewership of the sport has increased substantially. One of the most popular and prestigious races to watch during the season is the Monaco Grand Prix. In 2018, only 820K people watched this race. In 2024, however, this number was up to 1.97M. On top of this, because of increased popularity in the United States, the FIA added two more US races to their season calendar. While Circuit of the Americas (COTA) has been around since 2012, Miami and Las Vegas were added in 2022 and 2023 respectively.
Now how does this all tie back into venture capital and Accel’s unique opportunity for return on investment? It is all due to the potential for significant growth in Formula One’s popularity. Aston Martin finished fifth in the Constructor’s Championship in the 2024 season, earning them approximately $104M in prize money. With strategic leader Lawrence Stroll actively investing in the team by upgrading facilities, recruiting legendary F1 engineer Adrian Newey, and demonstrating a clear commitment to success, Aston Martin is widely expected to perform better in the coming seasons. The stronger the team performs, the higher the return for its investor, Accel.
There are multiple benefits of Accel’s investment in Aston Martin Formula One aside from the previously stated financial returns and exposure to the F1 market boom, the first being technological partnership. F1 is highly intensive when it comes to technological developments, which could then open doors for Accel in high-tech fields such as aerodynamics, data analytics, and energy emissions. Second, this opportunity provides expansion of Accel’s investment portfolio. By entering a high-visibility and capital-intensive industry like motorsport, Accel has the opportunity to diversify its portfolio beyond software and tech startups. Lastly, Aston Martin has long been a luxury brand with motorsport heritage. Accel’s association with this team could strengthen its brand recognition and potentially open new opportunities for partnerships and business ventures in Formula 1.
Accel’s investment in Aston Martin Formula One is more than just a financial play — it’s a bold move into the fast-paced world of motorsport. With F1’s rising popularity and Aston Martin’s drive for success under Lawrence Stroll’s leadership, the potential for growth is undeniable. It will be exciting to see how the teams battle it out on the track in the coming 2025 season and to observe whether Accel’s investment pays off.
Reece is a senior from Brookfield, Connecticut pursuing a dual major in Analytical Economics and Justice Studies. This is his first year in the fund and he is excited to gain fundamental knowledge on venture capital investing. This past summer he worked in New York City as an intern for a boutique employee experience consulting agency, Integral. At Integral, he gained valuable knowledge about public relations and corporate communications. On campus, he is also actively involved in UNH’s professional business fraternity, Alpha Kappa Psi, as well as the Electric Vehicle Organization.
