Sapphire Sport Rebrands as 359 Capital

Sapphire Sport Evolves into Independent Firm, 359 Capital

After almost seven years operating as a fund within Sapphire Ventures, Sapphire Sport – the venture capital firm specializing in sports, media, and entertainment – is establishing itself as an independent entity. This transition will see the fund rebranded as 359 Capital.

A New Name Reflecting Core Values

The selection of 359 Capital as the new firm name pays homage to the historic sub-four-minute mile. This achievement, once considered beyond human capability, was ultimately realized through unwavering commitment and determination. Michael Spirito, co-founder and managing partner of 359 Capital, explained that the name embodies the firm’s dedication to assisting its portfolio founders in accomplishing seemingly impossible goals.

Planned Independence Realized

Spirito indicated that separation from Sapphire Ventures, which manages approximately $11 billion in assets, was always a part of the long-term strategy. He described the move as a natural progression, stating, “We’re all grown up and ready to leave home.”

Distinct Limited Partner Base

Sapphire Sport has consistently operated with a separate group of limited partners (LPs) compared to Sapphire Ventures. These LPs possess strong connections within the sports industry, encompassing prominent organizations such as City Football Group, adidas, AEG, Madison Square Garden, Sinclair, and numerous team owners.

The Significance of the Original Branding

Spirito clarified that the initial name, Sapphire Sport, was chosen in 2019 not merely for its alliteration, but to specifically represent the firm’s LP network. The term 'Sport' effectively encapsulated the composition of its investor group.

Continued Value for Sports-Focused LPs

Even after seven years, the firm’s sports-centric LPs continue to benefit from their relationship with the firm. They gain valuable insights into emerging technology companies operating within the media and sports sectors, as stated by Spirito.

Notable Investments by 359 Capital

359 Capital’s investment portfolio includes a diverse range of startups. These include Beehiiv, a newsletter platform for creators, Betty Labs, an online casino, Overtime, a sports media platform, Perplexity, an AI search engine, and Tonal, a home gym system.

Seamless Transition of Team and Portfolio

The entire portfolio of 30 companies, along with all investment professionals, will transition to 359 Capital. This includes Michael Spirito, co-founders David Hartwig and Doug Higgins, and newly appointed partner Rico Mallozzi.

Investment Strategy Remains Consistent

As 359 Capital, the firm will maintain its focus on Series A and Series B startups, with investment amounts ranging from $2 million to $10 million. The firm intends to continue investing from its existing $181 million second fund through the first six months of 2027, according to Spirito.

Competitive Landscape

359 Capital will operate in a competitive environment within the sports-focused venture capital space. Courtside Ventures, which has backing from Shaquille O’Neal and Michael Jordan, is currently raising a $100 million fourth fund, as indicated in a recent SEC filing.