Summary:
Sapphire Sport rebrands as 359 Capital, an independent venture firm with $300 million in assets under management.
The name honors the sub-four-minute mile, symbolizing the firm's goal to help founders achieve the impossible.
The firm is halfway through investing its $181 million second fund and will continue through 2027.
Key portfolio companies include Beehiiv, Perplexity, and Tonal, focusing on Series A and B investments.
Limited partners are major sports industry players like adidas and City Football Group, providing strategic insights.
A New Chapter in Sports and Entertainment Investing
Nearly seven years after launching its first fund, Sapphire Sport—the venture fund dedicated to sports, media, and entertainment—has spun out from Sapphire Ventures. It is now rebranding as an independent firm called 359 Capital.
The Inspiration Behind the Name
The new name pays homage to the sub-four-minute mile, a milestone once thought impossible but achieved through relentless effort. Michael Spirito, co-founder and managing partner of 359 Capital, explained that this symbolizes the firm's mission to help portfolio founders achieve the impossible.
Independence and Growth
Spirito noted that separating from Sapphire Ventures, which manages around $11 billion in assets, was always part of the plan. "We're all grown up and ready to leave home," he said. The firm is currently halfway through deploying its $181 million second fund and will continue investing through the first half of 2027.
Key Limited Partners and Industry Ties
Sapphire Sport has always had a distinct group of limited partners (LPs) deeply embedded in the sports industry, including giants like City Football Group, adidas, AEG, Madison Square Garden, and Sinclair. These LPs leverage their relationship with the firm to gain insights into emerging tech companies in media and sports.
Portfolio and Investment Strategy
The entire portfolio of 30 companies and all investment staff are transitioning to 359 Capital. Notable startups in their portfolio include:
- Beehiiv, a creator-focused newsletter platform
- Betty Labs, an online casino
- Overtime, a sports media platform
- Perplexity, a successful AI search engine
- Tonal, a home gym system
The firm focuses on Series A and Series B startups, investing between $2 million to $10 million per deal.
Competitive Landscape
359 Capital faces competition from firms like Courtside Ventures, which is backed by celebrities such as Shaquille O'Neal and Michael Jordan and is raising a $100 million fourth fund.
Team Transition
The moving team includes co-founders Michael Spirito, David Hartwig, and Doug Higgins from Sapphire Ventures, along with newly promoted partner Rico Mallozzi.
Comments