Sapphire Sport launches and renames itself 359 Capital with assets under management of $300 million

Nearly seven years after announcing its first fund, Sapphire Sport – the venture capital fund focused on sports, media and entertainment – ​​has spun out from Sapphire Ventures. The fund will become an independent venture capital firm, 359 Capital.

The new company name is a tribute to the sub-four-minute mile, a feat once considered humanly impossible, but ultimately achieved through rigorous dedication and perseverance. 359 Capital Co-founder and managing partner Michael Spirito said the name reflects the company’s core principle of helping founders in its portfolio achieve the impossible.

Separating from Sapphire Ventures, an investment firm with about $11 billion in assets under management, was always on “the vision board,” Spirito said. “We are all grown up and ready to leave the house. »

Sapphire Sport, which is currently midway through investing its second fund of $181 million, has always maintained a separate limited partner group from Sapphire Ventures. His LPs are all deeply tied to the sports industry, including big names like City Football Group, adidas, AEG, Madison Square Garden, Sinclair and 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.”

Seven years later, sports-focused LPs are still leveraging their relationship with the company to better understand emerging technology companies in the media and sports landscape, Spirito said.

Some of the startups backed by 359 Capital include Beehiiv, a creator-focused newsletter.; an online casino, Betty Labs; a sports media platform; Overtime, an AI search engine; Perplexity, a successful AI browser; and Tonal, a home gym system.

The firm’s entire portfolio of 30 companies and its entire investment staff will be transferred to 359 Capital. The transition team includes Spirito, Sapphire Ventures co-founders 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 B startups, issuing checks between $2 million and $10 million. The firm will continue to invest from its second fund until the first half of 2027, Spirito said.

359 Capital will have high-level competition in the world of sports-focused venture capital. Courtside Ventures, backed by Shaquille O’Neal and Michael Jordan, is in the process of raising a fourth fund of $100 million, according to an SEC filing.