Collaborative Fund Invests in D.C. United, Following Thrive Capital’s Lead in VC-Driven Sports Ownership

Collaborative Fund, a New York-based venture capital firm with approximately $1 billion in assets under management, has acquired a stake in Major League Soccer club D.C. United and its home stadium, Audi Field. This investment marks the latest instance of venture capital firms entering professional sports ownership, a trend initiated by Thrive Capital just months ago.

Thrive Capital established a dedicated vehicle, Thrive Eternal, specifically designed to hold long-term stakes in iconic franchises and cultural institutions. The firm first announced its involvement with the San Francisco Giants and subsequently, in partnership with former Disney CEO Bob Iger, completed a record $12.5 billion acquisition of the Los Angeles Lakers.

Historically, professional sports ownership has been dominated by individual tech entrepreneurs and private equity firms. Recent examples include the Khosla family’s agreement to purchase the Seattle Seahawks for $9.6 billion, following their investment in the San Francisco 49ers. Private equity entities such as Sixth Street, which holds stakes in the Boston Celtics and New England Patriots, and Ares, which owns a portion of the Miami Dolphins, have also been active in this space.

However, Thrive Capital and Collaborative Fund are adopting distinct approaches. Thrive utilizes a standalone, permanent-capital structure for its sports investments. In contrast, Collaborative Fund is deploying capital from its existing early-stage fund, treating the D.C. United acquisition not as a traditional buy-and-hold asset but more as strategic infrastructure.

In a memo shared with TechCrunch, Collaborative Fund founder Craig Shapiro articulated the investment as an extension of the firm’s core strategy. He described a sports franchise as “the ultimate consumer product,” emphasizing D.C. United’s status as an original MLS club with a dedicated fan base. Shapiro highlighted favorable tailwinds in American soccer, including the recent World Cup, the upcoming LA Olympics, and growing youth participation, along with D.C. United’s ownership of Audi Field and its talent development pipeline in Loudoun County, Virginia.

The vision extends beyond financial returns; Collaborative aims to transform Audi Field into a dynamic showcase for its portfolio companies. For instance, the firm envisions integrations such as WHOOP wearables activations for fans and Olipop beverages in game-day concessions, leveraging the stadium’s high foot traffic as a distribution channel in an era where live experiences are gaining value.

While focusing on synergistic opportunities, the investment also benefits from appreciating team valuations. Soccer franchise values have surged, with MLS’s average club value increasing by roughly 134% since 2019. D.C. United’s valuation has climbed from $35 million in 2008 to $785 million today, factoring in stadium ownership and real estate assets.

The transaction is subject to approval from Major League Soccer.

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