Collaborative Fund, a New York-based venture capital firm with approximately $1 billion under management, has taken a stake in the soccer club D.C. United and its home venue, Audi Field. This move follows a trend initiated by Thrive Capital, which earlier this year launched a dedicated investment vehicle to hold stakes in major sports franchises. Thrive’s vehicle, Thrive Eternal, has already acquired interests in the San Francisco Giants and the Los Angeles Lakers, the latter for a record $12.5 billion.
Traditionally, professional sports ownership has been dominated by individual tech billionaires or private equity firms. Examples include Vinod Khosla’s recent purchase of the Seattle Seahawks and private equity firms like Sixth Street and RedBird holding stakes in various teams across leagues such as the NFL, NBA, and MLB.
Unlike these models, Collaborative Fund is investing through its existing early-stage venture fund rather than a separate permanent-capital vehicle. The firm views the investment not just as ownership but as an extension of its portfolio companies’ consumer engagement strategies. Collaborative Fund founder Craig Shapiro described D.C. United as an iconic consumer brand with a loyal fan base and highlighted the growth potential of American soccer, especially with upcoming events like the World Cup and the LA Olympics.
Shapiro envisions leveraging Audi Field as a platform for portfolio companies, integrating products such as WHOOP fitness wearables and Olipop beverages into the stadium experience. This approach aims to capitalize on the predictable foot traffic and the increasing value of live experiences amid a digital and AI-driven landscape.
The valuation of soccer franchises has increased significantly in recent years, with D.C. United’s value rising from $35 million in 2008 to $785 million today, reflecting both the team and its real estate assets. While the investment could appreciate on its own, Collaborative Fund’s strategy emphasizes the broader opportunities that come with sports franchise ownership.
The acquisition remains subject to approval by Major League Soccer.