VCs are taking a big bet on pro sports ownership, investing in several teams across the league in recent years. The latest example comes from Washington D.C., where venture capital firms have put money into the local soccer team, D.C. United.
Collaborative Fund, one of the biggest VC firms in the US, has acquired a stake in the struggling team and its stadium. Founded by Craig Shapiro, who is also an angel investor himself, Collaborative Fund pitched the deal as a way to showcase for the firm's startups while generating revenue from the investment. D.C. United will continue to operate under its existing ownership structure, with the VC firm having significant input on matters such as branding and business operations.
The investment has been met with skepticism by some in the sports industry, who question whether it is a viable way for VC firms to get involved in pro sports. However, Shapiro argues that Collaborative Fund's approach is about leveraging its resources to drive growth and innovation, rather than simply profiting from an asset. The team's stadium could be renovated or repurposed as a hub for startups and entrepreneurs, generating revenue through events and partnerships.