Follow the Money Friday: Is Pro Sports the New SaaS?

For years, the venture capital playbook was simple: find a scalable software solution and ride it to an IPO. But as the AI era makes digital experiences feel increasingly synthetic, some VCs are betting that the real growth is in the physical world—specifically, professional sports franchises.

**Opinion:** I've seen enough pitch decks to know when a 'strategic pivot' is actually just a vanity play. When VCs start buying sports teams, the question isn't whether the asset appreciates—it's whether they're treating the team as a business or a luxury accessory for the partners.

As TechCrunch first reported, we are seeing a shift in how venture money enters the sports arena. Historically, this happened via individual wealth—such as Vinod Khosla and his family buying the Seattle Seahawks for $9.6 billion or taking a stake in the San Francisco 49ers alongside OpenAI chairman Bret Taylor—or through private equity firms like Arctos, RedBird, Ares, and Sixth Street.

Now, venture firms are creating their own institutional paths. TechCrunch reports that Joshua Kushner’s Thrive Capital launched "Thrive Eternal," a permanent-capital vehicle designed to hold "cultural institutions" for the long haul. This vehicle has already taken a stake in the San Francisco Giants and, with the help of Thrive partner and former Disney CEO Bob Iger, purchased the Lakers for a record $12.5 billion.

Then there is Collaborative Fund. The New York-based firm, which manages roughly $1 billion and has backed names like Reddit and Lyft, is acquiring a stake in both the Audi Field stadium and the D.C. United soccer club. While Thrive built a separate vehicle for trophy assets, TechCrunch reports that Collaborative is investing out of the same early-stage fund it uses for seed and Series A checks.

Collaborative Fund founder and managing partner Craig Shapiro is pitching this as more than just an appreciating asset. In a memo shared with TechCrunch, Shapiro argues that a franchise is "the ultimate consumer product." He views Audi Field as a distribution channel and a "living showcase" for the firm's portfolio. For instance, Shapiro envisions integrating fitness band maker Whoop through wearables activations or placing beverage brand Olipop in game-day concessions.

Shapiro's thesis, as reported by TechCrunch, relies on the predictability of stadium foot traffic and tailwinds for American soccer, including the upcoming LA Olympics and World Cup. He also pointed to the club's ownership of the Audi Field venue, rights to a future expansion team in Baltimore, and a talent pipeline located in Loudoun County, Virginia.

Whether this is a sustainable strategy or a costly diversion remains to be seen, though the numbers are seductive. TechCrunch notes that MLS average club values have risen roughly 134% since 2019, and the valuation for D.C. United has grown from $35 million in 2008 to $785 million at present. The D.C. United deal is currently awaiting MLS approval.