Almost seven years after announcing its first fund, Sapphire Sport, a venture fund focused on sports, media and entertainment, has been spun out of Sapphire Ventures. The fund will be rebranded as an independent venture company, 359 Capital.
The company's new name pays homage to the feat of breaking the four-minute mile, once thought to be impossible by humans, but ultimately accomplished through sheer dedication and perseverance. Spirito said the name reflects the company's core principle of helping portfolio founders achieve the impossible.
Michael Spirito, managing partner and co-founder of 359 Capital, said the separation from Sapphire Ventures, an investment firm with about $11 billion in assets under management, was always on his “vision board.” “We're all grown up and ready to leave the house.”
Sapphire Sport is currently in the process of investing in its second $181 million fund, but has always maintained a group of limited partners separate from Sapphire Ventures. All of the company's LPs have deep ties to the sports industry and include major corporations such as City Football Group, Adidas, AEG, Madison Square Garden and Sinclair, as well as dozens of team owners.
“When we started in 2019, the name Sapphire Sport wasn’t just alliterative and sounded cool,” Spirito said. “Sports captured the LP group.”
Spirito said sports-focused LPs still use their relationships with the company to gain insight into emerging technology companies across the media and sports worlds.
Some of the startups 359 Capital has backed include Beehiiv, a newsletter focused on creators. online casino. Betty Labs, a sports media platform. Overtime, AI search engine. Perplexity, a successful AI browser. Tonal home gym system.
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The firm's entire portfolio of 30 companies and its entire investment staff will be transferred to 359 Capital. Transition staff includes Sapphire Ventures co-founders Spirito, David Hartwig and Doug Higgins, and newly promoted partner Rico Mallozzi.
As 359 Capital, the company will continue to focus primarily on Series A and Series B startups, writing checks between $2 million and $10 million. The company will continue investing from the second fund through the first half of 2027, Spirito said.
359 Capital will be competing for attention in the world of sports-focused venture capital. Courtside Ventures, backed by Shaquille O'Neal and Michael Jordan, is raising its fourth $100 million fund, according to an SEC filing.