New York-based venture firm Collaborative Fund has invested in MLS club D.C. United, marking a shift in how venture capital firms approach professional sports ownership.

Collaborative Fund, a 15-year-old venture firm with roughly $1 billion under management, has acquired a stake in the soccer club D.C. United and its stadium, Audi Field. This move follows a recent trend of venture capital firms entering the professional sports ownership space, a path recently opened by Thrive Capital.

Strategic Investment Approach

Unlike Thrive Capital, which created a dedicated permanent-capital vehicle to hold sports assets, Collaborative Fund is investing through its existing early-stage fund. Founder and managing partner Craig Shapiro described the investment as an extension of the firm's consumer-focused strategy, viewing the soccer club as a long-standing institution with a dedicated fan base.

Stadium as a Distribution Channel

Collaborative Fund intends to use Audi Field as a showcase for its portfolio companies. By leveraging the stadium's consistent foot traffic, the firm plans to integrate its portfolio brands, such as Whoop and Olipop, into the game-day experience. Shapiro noted that as digital life becomes increasingly synthetic, live experiences and the physical venues that host them are gaining value.

Market Context and Valuations

The investment comes amid rising valuations for soccer franchises. D.C. United’s valuation has grown from $35 million in 2008 to $785 million today, a figure that includes the club's ownership of Audi Field and surrounding real estate. Other venture and private equity firms, including Sixth Street, Ares, RedBird, and Arctos, have also established various ownership stakes or financing deals across professional sports leagues.