Collaborative Fund, a New York-based venture capital firm with approximately $1 billion under management, has acquired a stake in the Major League Soccer team D.C. United and its home venue, Audi Field. This move marks the firm's entry into professional sports ownership, a path recently pioneered by Thrive Capital.
Thrive Capital initiated this trend with the creation of Thrive Eternal, a dedicated investment vehicle designed to hold iconic sports franchises and cultural institutions long-term. Thrive Eternal's notable acquisitions include stakes in the San Francisco Giants and full ownership of the Los Angeles Lakers, the latter purchased for a record $12.5 billion.
Traditionally, professional sports ownership has been dominated by individual tech billionaires and 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 sports franchises. However, Collaborative Fund's approach differs by investing through its early-stage venture fund rather than a separate, permanent-capital vehicle.
Craig Shapiro, founder and managing partner of Collaborative Fund, described the investment as an extension of the firm's consumer-focused strategy. He emphasized D.C. United's status as one of Major League Soccer's original clubs, its established fan base, and the potential growth of American soccer driven by events like the upcoming World Cup and the Los Angeles Olympics.
Beyond ownership, Collaborative Fund aims to utilize Audi Field as a platform to showcase its portfolio companies. For instance, partnerships with fitness wearable maker Whoop and beverage brand Olipop could create unique fan experiences and new distribution channels within the stadium environment. This strategy leverages the increasing value of live experiences amid a growing digital and AI-driven landscape.
The investment also benefits from rising valuations in the soccer market. D.C. United's valuation has increased significantly over the past decade, reflecting broader growth in Major League Soccer's franchise values, which have surged since high-profile player acquisitions and expanding fan interest.
The deal remains subject to approval by Major League Soccer. Collaborative Fund's entry into sports ownership highlights an evolving intersection between venture capital and professional sports, where franchises are viewed not only as appreciating assets but also as dynamic consumer platforms.