Collaborative Fund, a New York-based venture firm with about $1 billion under management, is entering professional sports ownership by acquiring a stake in Major League Soccer’s D.C. United and its stadium, Audi Field. This move follows the path forged by Thrive Capital earlier this year, which launched a dedicated vehicle named Thrive Eternal to hold iconic sports franchises like the San Francisco Giants and the Los Angeles Lakers, the latter purchased for a record $12.5 billion. Unlike private equity or individual billionaire purchases, Collaborative Fund is embedding sports ownership into its existing venture fund strategy.

Thrive Capital’s approach created a new model for venture capitalists investing in sports by setting up a permanent capital vehicle focused on long-term ownership of marquee franchise assets. By contrast, Collaborative Fund is treating its investment in D.C. United more as operational infrastructure within its early-stage fund rather than solely a financial play. Founder Craig Shapiro views the soccer club as an extension of the firm’s broader portfolio, hoping to leverage Audi Field as a live platform to promote startups like fitness tracker maker Whoop and beverage company Olipop during games.

Shapiro highlighted the growing popularity and commercial potential of American soccer, supported by events like the recent World Cup and upcoming LA Olympics, alongside rising youth participation. The firm also benefits from D.C. United’s real estate assets and developmental pipeline through Loudoun United FC, as well as regional expansion rights. For Collaborative Fund, owning a sports franchise is less about traditional appreciation and more about creating a consumer-facing product that can showcase innovations and engage tens of thousands of fans regularly.

The value of MLS franchises has surged in recent years, with D.C. United’s valuation climbing from $35 million in 2008 to $785 million today, reflecting both team performance and real estate holdings. While the deal awaits league approval, this venture into sports ownership signals a fresh way venture capitalists are leveraging teams not just as financial assets but as dynamic venues to drive engagement, marketing, and distribution for their broader investments. The outcome will test whether sports franchises can become new incubators for innovation within venture portfolios.