Why a Seed Investor Just Bought a Piece of an MLS Team
Collaborative Fund is branching into professional sports ownership, taking a stake in Major League Soccer’s D.C. United and its venue, Audi Field, a move the firm publicly discussed Thursday night in New York. The investment adds another example of venture firms using their capital and networks to buy into teams, a lane that has typically been dominated by billionaire buyers and private equity. Collaborative is making the purchase from the same early-stage fund it uses for seed and Series A investing, rather than setting up a dedicated long-term vehicle, TechCrunch reported. The transaction still needs approval from MLS. In a memo shared with TechCrunch, Collaborative founder and managing partner Craig Shapiro described the logic in consumer terms, writing, "A franchise is the ultimate consumer product." Shapiro tied that view to D.C. United’s history as an original MLS club and what he sees as a durable fan base. Read Also: Deal Dispatch: Bending Spoons Acquires Miro For $1.35B, Kinetik Up For Sale, LIV Golf Bankruptcy Collaborative’s pitch leans heavily on the stadium as an operating asset, according to TechCrunch, with Audi Field positioned as a place to spotlight products from
C. United and its venue, Audi Field, a move the firm publicly discussed Thursday night in New York. The investment adds another example of venture firms using their capital and networks to buy into teams, a lane that has typically been dominated by billionaire buyers and private equity. Collaborative is making the purchase from the same early-stage fund it uses for seed and Series A investing, rather than setting up a dedicated long-term vehicle, TechCrunch reported.
The transaction still needs approval from MLS. C. United’s history as an original MLS club and what he sees as a durable fan base. 35B, Kinetik Up For Sale, LIV Golf Bankruptcy Collaborative’s pitch leans heavily on the stadium as an operating asset, according to TechCrunch, with Audi Field positioned as a place to spotlight products from the fund’s portfolio.
Shapiro cited examples such as integrating the fund’s investments in Whoop and Olipop into fan experiences and concessions. S. soccer, including tournament timing and participation trends, and highlighted assets tied to the deal, such as the Loudoun County development pipeline and rights to a future Baltimore expansion team. , as part of the appeal.
The TechCrunch report contrasted Collaborative’s approach with Thrive Capital’s sports push, which has used a separate vehicle called Thrive Eternal aimed at holding "iconic franchises and cultural institutions" over long periods. 5 billion, with former Disney CEO Bob Iger, a Thrive partner, joining as a co-owner. Thrive Eternal took an initial stake in the San Francisco Giants in April 2026. 5 billion.
C. United’s valuation from $35 million in 2008 to $785 million today when accounting for stadium ownership and related real estate. Sports Investing Goes Mainstream Private equity and venture capital in sports have been an accelerating investment trend, where firms are looking to acquire minority or majority stakes in professional teams, leagues, and businesses, as company valuations grow. Major leagues such as the NFL, NBA, MLB, and NHL now permit private equity investment into their franchises..
from Meketa, the global sports market reached $463 billion in revenue in 2024. It is projected to accelerate to just over $600 billion in revenue by 2028, and to nearly $863 billion by 2033. Drivers of this growth include "the rising value of media rights deals, increased fan engagement, the expansion of sponsorship and merchandising opportunities, and growth in sports-adjacent businesses," the report stated. 2 Trillion Valuation Has A SpaceX Problem: Scarcity, Not Fundamentals