With roughly $1 billion in assets under management, Collaborative Fund, headquartered in New York, has declared a new investment in Major League Soccer’s D.C. United and its home facility, Audi Field. This marks the venture capital firm’s debut as a direct stakeholder in a professional sports organization.
By making this move, Collaborative Fund joins the ranks of VC firms now entering the world of elite sports team investments—a domain that has historically been the preserve of deep-pocketed individuals and private equity. Not only is Collaborative Fund part of this trend, but it is currently the smallest such venture operator to do so.
Venture Firms Follow New Sports Investment Trend
This latest initiative by Collaborative Fund comes on the heels of similar strategies from firms like Thrive Capital, led by Joshua Kushner. Thrive established Thrive Eternal as a new investment vehicle specifically to secure lasting interests in high-profile franchises and cultural assets. Thrive Eternal’s foray began with the San Francisco Giants, then made news with its acquisition of the Los Angeles Lakers for a record $12.5 billion, a deal that brought former Disney CEO Bob Iger on board as a co-owner.
Traditionally, sports team investments originated from billionaire investors or dedicated private equity, with institutional involvement being rare. For example, earlier this year Vinod Khosla and family agreed to purchase the Seattle Seahawks for $9.6 billion; this came soon after they joined OpenAI’s Bret Taylor in taking a stake in the San Francisco 49ers. These were personal, not institutional, bets.
On the private equity front, Sixth Street maintains interests in the Boston Celtics, San Francisco Giants, and New England Patriots, while Ares Management owns a share of the Miami Dolphins and has provided $500 million in preferred financing for Chelsea FC’s stadium redevelopment. RedBird Capital possesses full ownership of AC Milan and holds a minority share in Fenway Sports Group. Additionally, Arctos Sports Partners spans the MLB, NBA, NFL, and Europe’s top leagues, while Apollo Global Management favors lending to sports organizations more than outright ownership.
Combining Early-Stage Venture Tactics With Sports
In contrast to Thrive’s distinct vehicle for team ownership, Collaborative Fund will make use of its main early-stage venture capital pool for the D.C. United deal—blending startup-focused capital deployment with sports investments. Craig Shapiro, founder and managing partner, explained in a company memo that this fits naturally with their mission of backing the world’s most influential consumer products.
Shapiro identifies a sports franchise as “the ultimate consumer product,” pointing specifically to D.C. United’s long history as an MLS original, its devoted multigenerational fan base, and broad commercial potential. Assets emphasized in Collaborative Fund’s announcement include club management over Audi Field, player development via Loudoun County, Virginia, and rights related to a future Baltimore expansion. He also highlighted broader tailwinds, referencing the legacy of the latest FIFA World Cup, anticipation for the LA Olympics, and increasing youth participation rates across the United States.
Collaborative Fund’s goals go beyond mere anticipation of asset appreciation—Shapiro aims to turn Audi Field into a “living showcase” for the fund’s portfolio brands. With previous investments in Whoop, maker of fitness tracking devices, and healthy soda alternative Olipop, Shapiro envisions bringing these companies to life in front of fans through stadium activations, such as real-time wearables demos or selling Olipop at concessions. The idea is to take advantage of a growing appetite for physical, memorable fan experiences at a time when more of daily life moves online.
Soaring MLS Club Prices Set the Stage
The growing value of MLS franchises is a strong incentive for such deals—even as Collaborative Fund prioritizes other returns. In total, D.C. United’s valuation, which factors in both Audi Field and other properties, has rocketed to $785 million from just $35 million in 2008. League-wide, average club values in MLS have risen about 134% since 2019, and some teams, like Inter Miami, have nearly doubled in value over the past two years on the back of high-profile signings.
Results from Shapiro’s hypothesis—that pro sports investment marries financial returns with the highest form of consumer engagement—could play out in multiple ways for Collaborative Fund. Still, the transaction remains subject to approval by Major League Soccer before any outcomes materialize.
This strategy from Collaborative Fund highlights a new approach among venture capitalists—rethinking both capital allocation and the integration of business, technology, and live entertainment as the line blurs between lifestyle brands and professional sports.