Collaborative Fund Acquires Stake in D.C. United to Showcase Portfolio Startups
- Collaborative Fund is taking an equity stake in Major League Soccer club D.C.
- With roughly $1 billion under management, the firm has previously backed consumer staples and technology companies like Lyft, Reddit, Sweetgreen, and Olipop.
- Thrive launched a vehicle called Thrive Eternal to hold cultural institutions and franchises for decades, starting with a stake in the San Francisco Giants and later acquiring the...
Collaborative Fund is taking an equity stake in Major League Soccer club D.C. United and its home stadium, Audi Field. The move marks a strategic shift for the 15-year-old New York-based generalist venture firm, according to reporting from TechCrunch.
Venture Capital Takes a Soccer Pitch
With roughly $1 billion under management, the firm has previously backed consumer staples and technology companies like Lyft, Reddit, Sweetgreen, and Olipop. Unlike traditional private equity plays or individual billionaire tech fortunes, Collaborative Fund is deploying capital directly out of its early-stage fund to treat a sports franchise as operational infrastructure rather than a purely appreciating asset.
A New Blueprint for Sports Ownership
The investment follows a trail blazed by Thrive Capital. Thrive launched a vehicle called Thrive Eternal to hold cultural institutions and franchises for decades, starting with a stake in the San Francisco Giants and later acquiring the Los Angeles Lakers alongside former Disney CEO Bob Iger, as detailed by TechCrunch.
Other sports ownership models rely heavily on private equity giants like Sixth Street, Ares, RedBird, and Arctos. Others still choose personal wealth plays, such as Vinod Khosla’s family securing ownership of the Seattle Seahawks and stakes in the San Francisco 49ers. Collaborative Fund’s approach differs by utilizing standard early-stage venture checks rather than creating a separate standalone permanent-capital vehicle for trophy assets.
The Ultimate Consumer Product
According to a memo shared with TechCrunch by Collaborative Fund founder and managing partner Craig Shapiro, the firm views the acquisition through the lens of product distribution.
Shapiro framed the deal by writing, A franchise is the ultimate consumer product,
pointing to D.C. United’s history as an original MLS club with a multi-decade fan base. The firm aims to leverage the predictable foot traffic at Audi Field in Washington, D.C., to showcase and test its existing startup portfolio.
Audi Field as a Living Laboratory
Under this strategy, the stadium could serve as a physical testing ground for portfolio companies.
Shapiro highlighted potential integrations involving fitness band maker Whoop and beverage brand Olipop during game days, translating to wearable technology activations and concession placements. This live-experience channel gains heightened value as artificial intelligence makes daily digital life feel increasingly synthetic, according to the firm’s thesis presented at a StrictlyVC event in New York.
Regional Assets and Macro Tailwinds
Beyond the primary venue in Washington, Collaborative Fund’s investment factors in broader regional assets tied to the club. These include a talent-development pipeline operating out of Loudoun County, Virginia, and rights linked to a prospective future expansion team in Baltimore.
Shapiro also emphasized macro tailwinds supporting American soccer. He pointed to rising domestic youth participation numbers alongside major upcoming global events including a World Cup and the LA Olympics.