Collaborative Fund, a New York-based venture firm with approximately $1 billion under management, has taken an ownership stake in D.C. United, a Major League Soccer club, along with its home venue, Audi Field. This move reflects a recent shift in how venture capital is approaching professional sports ownership, a trend initiated by Thrive Capital earlier this year.
Thrive Capital created a dedicated investment vehicle called Thrive Eternal to hold iconic sports franchises and cultural institutions long-term. Thrive’s early investments included a stake in the San Francisco Giants and later acquiring the Los Angeles Lakers for $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 or private equity firms. Notable examples include Vinod Khosla’s family purchase of the Seattle Seahawks and private equity firms like Sixth Street and RedBird holding stakes in various major sports teams.
Collaborative Fund’s approach differs from both these models. Instead of creating a separate fund for sports assets, it is investing through its existing early-stage venture fund. Collaborative Fund views sports franchises not just as appreciating assets but as consumer platforms that can integrate with its portfolio companies.
Founder Craig Shapiro described D.C. United as an institution with a strong fan base and growth potential, especially given the rising popularity of soccer in the U.S., upcoming major sporting events, and the club’s ownership of Audi Field and related development rights.
Collaborative Fund plans to use Audi Field as a showcase for its portfolio brands, such as fitness wearable maker Whoop and beverage company Olipop, by integrating their products into the live game-day experience. This strategy leverages the predictable foot traffic and increasing value of live events amid a digital and AI-driven landscape.
Soccer franchise valuations have surged recently, with D.C. United’s value rising from $35 million in 2008 to $785 million today, reflecting both the team and its real estate holdings. While the investment offers potential financial returns, Collaborative Fund emphasizes the broader consumer engagement opportunities that sports ownership provides.
The deal remains subject to approval by Major League Soccer.