Collaborative Fund, a New York-based venture capital firm with approximately $1 billion in assets under management, has taken an ownership stake in Major League Soccer club D.C. United and its stadium, Audi Field. The investment marks the latest move by venture capitalists to enter professional sports ownership, a path previously opened by Thrive Capital earlier this year.
Thrive Capital launched Thrive Eternal, a dedicated vehicle for holding long-term cultural assets, which initially acquired a stake in the San Francisco Giants and subsequently purchased the Los Angeles Lakers for a record $12.5 billion alongside former Disney CEO Bob Iger. In contrast, Collaborative Fund is investing through its existing early-stage fund rather than creating a separate entity. Founder and managing partner Craig Shapiro views the soccer franchise less as a static asset to appreciate and more as functional infrastructure for his portfolio companies.
“A franchise is the ultimate consumer product,” Shapiro wrote in a memo to investors. He highlighted D.C. United’s status as an original MLS club with a decades-old fan base, positioned against a backdrop of growing American soccer popularity driven by upcoming World Cup and Olympic events.
The deal allows Collaborative to integrate its existing investments into the stadium experience. The firm backs fitness tracker maker Whoop and beverage brand Olipop, both of which could feature activations at games. Shapiro described the stadium’s regular foot traffic as a valuable distribution channel, noting that live experiences are gaining premium status as AI makes digital interactions feel increasingly synthetic.
While the primary thesis focuses on utility for portfolio companies, the financial upside is significant. Soccer franchise valuations have surged, with MLS club values rising approximately 134% since 2019. D.C. United’s valuation has climbed from $35 million in 2008 to $785 million today, a figure that includes ownership of Audi Field and surrounding real estate.
This approach differs from traditional sports investment models, which typically involve individual tech fortunes or private equity firms. High-profile examples include the Khosla family’s purchase of the Seattle Seahawks and various private equity stakes held by firms like Sixth Street, Ares, and RedBird in teams such as the Boston Celtics, Miami Dolphins, and AC Milan.
The transaction is subject to approval by Major League Soccer.
Is this just VC bros trying to monetize live events because digital ads are dead? Hope the fans actually benefit.
Wait, D.C. United is now worth $785 million? That valuation jump from $35 million seems absolutely astronomical to me.
Using a soccer stadium as a distribution channel for fitness and beverage brands is a brilliant, unconventional strategy.