VCs Bet Big on Soccer Franchises | Tech News

0:00On September 10, so venture capital firms are starting to dip their toes into professional sports ownership. Collaborative Fund, a New York-based outfit with about $1 billion under management, is taking a stake in DC United and their stadium, Audi, Field. This follows a trend kicked off by Thrive Capital, which launched a special fund to hold iconic franchises and even bought the Lakers for a massive. $12.5 billion. Shortly, pro sports teams were bought by wealthy individuals or traditional private equity firms. Think about Vinod Kostla buying the Seattle Seahawks for $9.6 billion or firms like Sixth Street in areas holding stakes in various teams. It's a different game than what these venture capital players are doing. Collaborative Fund, for instance, is using the same early stage fund they use for tech startups. Their founder sees a sports franchise as the ultimate consumer product and they're betting on the growth of soccer in America, especially with the World Cup on the horizon

1:03and the Olympics coming to LA. They're also looking at DC United's ownership of their stadium and their player development system. Plus, the value of soccer franchises has been skyrocketing, with Inter Miami's value doubling since Messi joined an MLS club, seeing huge jumps in. Valuation. DC United itself has gone from $35 million to $785 million. This move is still subject to major league soccer's approval, but it's an interesting shift. Showing how venture capital is finding new avenues for. Investment beyond just tech. It's a whole new ball game, literally. That's your update from Tech News Today, powered by AI. I'm Corey with the story.