Collaborative Fund, a 15-year-old venture firm with a $1 billion portfolio, has made a rare foray into professional sports ownership by taking a stake in D.C. United and its stadium, Audi Field. This move follows in the footsteps of venture capital giant Thrive Capital, which launched its own vehicle, Thrive Eternal, to acquire and hold iconic franchises for decades. While private equity firms have been active in sports ownership for years, the entry of generalist venture firms like Collaborative Fund suggests a new shift in the landscape.

Collaborative Fund’s approach is unique. Unlike Thrive, which established a dedicated vehicle for long-term investments, Collaborative is investing out of its same early-stage fund, treating sports ownership almost as infrastructure. Founder Craig Shapiro argues that a professional sports team is a consumer product with a built-in audience, pointing to the growth of American soccer and the potential for live events as a valuable distribution channel.

The financial stakes are high. Soccer valuations have been particularly robust, with D.C. United’s own valuation increasing from $35 million in 2008 to an estimated $785 million today, factoring in the ownership of Audi Field and surrounding real estate. As AI continues to make daily life feel more synthetic, live experiences are becoming more valuable, potentially making this a smart investment for Collaborative Fund.

Whether this trend will continue or fade remains to be seen. It’s clear, however, that the intersection of venture capital and professional sports is becoming more intertwined than ever before.