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 recent trend initiated by Thrive Capital, which created a dedicated investment vehicle to acquire stakes in major sports franchises such as the San Francisco Giants and the Los Angeles Lakers.
Historically, professional sports ownership has been dominated by individual tech billionaires and private equity firms. Examples include Vinod Khosla's purchase of the Seattle Seahawks and private equity firms like Sixth Street and RedBird holding stakes in various NFL, NBA, and MLB teams. However, Thrive Capital and Collaborative Fund represent a new approach by venture capital firms entering the sports ownership arena.
Collaborative Fund differs from Thrive by investing through its existing early-stage fund rather than a dedicated sports investment vehicle. Founder Craig Shapiro described the deal as an extension of the firm's consumer-focused investment strategy, viewing a sports franchise as a long-standing consumer brand with a loyal fan base. He highlighted the growth potential of American soccer, citing factors such as the upcoming World Cup, the Los Angeles Olympics, rising youth participation, and D.C. United’s assets including Audi Field and development pipelines.
Rather than focusing solely on the appreciation of the team’s value, Collaborative Fund aims to leverage the stadium and fan engagement to create opportunities for its portfolio companies. For instance, the firm envisions integrating its investments like fitness tracker Whoop and beverage brand Olipop into the game-day experience at Audi Field, using the stadium’s consistent foot traffic as a platform for product activation and distribution.
The valuation of soccer franchises has surged in recent years, with D.C. United’s value rising from $35 million in 2008 to an estimated $785 million today, reflecting both the team and associated real estate. This growth, combined with the experiential opportunities the franchise offers, makes sports ownership an attractive proposition for venture capital firms exploring new asset classes.
The transaction is pending approval from Major League Soccer, and its outcome could signal further integration of venture capital into professional sports ownership and related consumer experiences.