Collaborative Fund, a 15-year-old generalist venture firm based in New York with approximately $1 billion in assets, is acquiring a stake in D.C. United, a soccer club, and its stadium, Audi Field. The firm, known for early investments in companies like Lyft, Reddit, Sweetgreen, and Olipop, is venturing into sports ownership.
This move makes Collaborative Fund the latest—and smallest—venture firm to explore turning venture capital into professional sports ownership, a trend that Thrive Capital initiated a few months ago.
To summarize, Thrive Capital, led by Joshua Kushner, introduced a new investment vehicle called Thrive Eternal, designed to hold iconic franchises and cultural institutions for the long term, backed by investors from Thrive’s venture and growth funds. Thrive began by acquiring a stake in the San Francisco Giants and later, with Bob Iger, a Thrive partner, joining as co-owner, purchased the Lakers for $12.5 billion, setting a record.
Traditionally, investments in professional sports have been driven by individual tech fortunes and private equity. For instance, Vinod Khosla and his family agreed to buy the Seattle Seahawks for a record $9.6 billion and also acquired a stake in the San Francisco 49ers alongside OpenAI’s Bret Taylor, representing a personal wealth investment.
Private equity firms have been involved in sports for years. Sixth Street holds stakes in the Boston Celtics, New England Patriots, and MLB’s San Francisco Giants. Ares owns a part of the Miami Dolphins and financed Chelsea’s stadium plans with a $500 million preferred-equity deal. RedBird owns AC Milan and a minority stake in Fenway Sports Group, which owns Liverpool and the Red Sox. Arctos has minority positions across MLB, NFL, NBA, and European soccer. Apollo has primarily focused on sports financing rather than ownership.
Thrive and Collaborative Fund are pursuing different strategies. While Thrive has created a standalone vehicle to hold trophy assets, Collaborative Fund is investing from its existing early-stage fund, treating the investment more like infrastructure than a traditional buy-and-hold deal.
In a memo shared with JS, Craig Shapiro, founder and managing partner of Collaborative Fund, described the investment as an extension of the firm’s existing activities. He noted that a franchise is “the ultimate consumer product,” highlighting D.C. United’s status as one of Major League Soccer’s original clubs, which offers a decades-long fan base to build upon.
Shapiro also pointed to the positive momentum in American soccer, including a recent World Cup, the upcoming LA Olympics, and rising youth soccer participation in the U.S. D.C. United’s ownership of Audi Field, along with a talent-development pipeline through Loudoun County, Virginia, and rights to a future Baltimore expansion team, were also emphasized.
At a recent JS StrictlyVC event in New York, Shapiro shared that the focus is less on owning an appreciating asset like a sports team and more on the opportunities the team enables. Collaborative Fund aims to transform Audi Field into a showcase for its portfolio.
As investors in fitness band maker Whoop and beverage brand Olipop, Collaborative Fund envisions integrating WHOOP wearables for fans and Olipop drinks into game-day concessions. Shapiro views the stadium’s foot traffic as a valuable distribution channel, especially as AI makes daily life feel more synthetic, increasing the value of live experiences.
Although Shapiro downplays it, the rising valuations of soccer teams likely helped convince Collaborative’s investors. Soccer valuations have surged, with Inter Miami’s value doubling since Lionel Messi’s arrival. MLS’s average club value has increased by roughly 134% since 2019, and D.C. United’s valuation has risen from $35 million in 2008 to $785 million today, including its ownership of Audi Field and surrounding real estate.
If Shapiro’s perspective that a franchise is “the ultimate consumer product” holds true, it may indeed prove to be a wise investment. Time will tell.
The transaction is pending approval from Major League Soccer (MLS).
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