Collaborative Fund, a New York-based venture capital firm with approximately $1 billion under management, has taken an ownership stake in the soccer club D.C. United and its home stadium, Audi Field. This investment represents a continuation of a recent trend where venture capital firms are entering the professional sports ownership space.
Earlier this year, Thrive Capital launched Thrive Eternal, a dedicated investment vehicle designed to hold iconic sports franchises and cultural institutions long-term. Thrive Eternal began by acquiring a stake in the San Francisco Giants and later purchased the Los Angeles Lakers for a record $12.5 billion, with former Disney CEO Bob Iger joining as a co-owner.
Traditionally, professional sports ownership has been dominated by individual tech billionaires and private equity firms. Examples include Vinod Khosla’s family acquisition of the Seattle Seahawks and private equity firms like Sixth Street and RedBird holding stakes in various major league teams. However, Thrive and Collaborative Fund are pioneering a different approach by integrating venture capital into sports ownership.
Unlike Thrive’s creation of a permanent capital vehicle focused on long-term holding, Collaborative Fund is investing through its existing early-stage fund. Collaborative Fund’s founder, Craig Shapiro, describes the D.C. United investment as an extension of the firm’s consumer-focused portfolio. He highlights the club’s status as one of Major League Soccer’s original teams and its ownership of Audi Field as strategic assets.
Shapiro envisions leveraging the stadium as a platform for portfolio companies, such as fitness wearable maker Whoop and beverage brand Olipop, to engage with fans through live activations and concessions. This approach capitalizes on the growing value of live experiences amid increasing digital and AI-driven interactions.
The timing aligns with rising valuations in American soccer. Since 2019, MLS club values have surged by over 130%, with D.C. United’s valuation increasing from $35 million in 2008 to $785 million today, factoring in real estate assets. While Collaborative Fund emphasizes the strategic consumer engagement potential, the investment also benefits from these appreciating asset values.
The deal remains subject to approval by Major League Soccer. Collaborative Fund’s entry into sports ownership highlights an evolving landscape where venture capital is exploring new ways to combine investment with consumer brand development in professional sports.