vc kara nortman bet early on women’s sports, and now she’s creating the market

Angel City FC and the Reshaping of Women’s Sports Investment

Angel City FC’s early season conclusion, finishing 11th among 13 teams, was a source of disappointment for the Los Angeles soccer club co-founded by venture capitalist Kara Nortman in 2020. However, the team’s difficulties represent only a segment of a broader transformation in how investors perceive women’s sports.

A Case Study in Women’s Sports Property Construction

Despite its performance on the field, Angel City has emerged as a significant example – even studied at Harvard Business School – of how to effectively build a women’s sports organization. The team’s ownership, which includes celebrities like Natalie Portman and Serena Williams, has generated considerable attention. Furthermore, the franchise has demonstrated acumen in securing sponsorships, establishing records even before the commencement of play.

Nortman reflected last month on the team’s rapid commercial success, stating, “We progressed from zero to $30 million in revenue. Games were sold out. We created something previously considered unattainable.”

The Birth of Monarch Collective

This commercial success, rather than championship victories, served as the foundation for Monarch Collective, the $250 million fund launched by Nortman in 2023. This fund is the first investment platform dedicated solely to women’s sports. Although its origins are linked to a team that has not yet reached a playoff game, Monarch’s portfolio and influence have extended beyond Angel City’s training grounds in Thousand Oaks, California.

Currently, the fund holds ownership stakes in three additional National Women’s Soccer League teams: San Diego Wave, Boston Legacy FC (launching next year), and, most recently, FC Viktoria Berlin. The acquisition of 38% of the German club marks Monarch as the first foreign investor to hold a stake in a German women’s soccer team.

An Inflection Point for Women’s Sports

This diverse portfolio reflects Nortman’s belief that women’s sports are at a pivotal moment, irrespective of the performance of any single team. Supporting data reinforces her optimism.

“The global men’s sports market is estimated at approximately half a trillion dollars,” Nortman explains. “When we initiated Monarch in 2023, the women’s sports market was estimated at around half a billion dollars. It is now approaching $3 billion.”

A Different Playbook

Nortman asserts that capitalizing on this growth necessitates a distinct strategy compared to men’s sports, stating it isn’t a simple replication of existing models. “How many men’s team owners are considering dropping Sephora boxes from the arena rafters? Or featuring a Fenty cam at a New York Liberty game for lipstick application, or hosting a Hello Kitty collaboration night at Angel City where merchandise sells out instantly?”

Valuation and Validation

Angel City’s innovative marketing and partnerships cultivated significant excitement, leading to its acquisition by Bob Iger and Willow Bay in the fall of last year for $250 million. This transaction established it as the most valuable women’s sports franchise globally.

For Nortman, who transitioned from Upfront Ventures to concentrate on women’s sports, Angel City’s commercial achievements continue to validate Monarch’s core investment principle. Despite current debate regarding the team’s business success versus its on-field results, it has demonstrably proven that women’s sports can generate substantial revenue with the appropriate elements in place.

Lessons from History

Nortman acknowledges the need for sustained momentum, recognizing that promising periods in women’s sports have previously faded. She cites a historical parallel from 1920, when 60,000 spectators attended a Dick, Kerr Ladies football match in Liverpool, England – a larger crowd than many current Premier League games. However, the English Football Association subsequently banned women from playing, effectively ending the sport for decades.

“Everyone has the opportunity to position themselves as the discoverer of women’s sports,” Nortman says. “But consistent, dedicated effort is required to translate that discovery into sustained success.”

Beyond Breakout Stars

This effort, she contends, requires more than simply capitalizing on the attention generated by rising stars like Caitlin Clark or Angel Reese. It necessitates systematic investment in infrastructure, governance, and operations – the less glamorous aspects of building sustainable businesses.

Monarch’s Operational Approach

This is where Monarch’s strategy differs from traditional venture capital. Instead of making numerous passive investments, Monarch takes significant positions in a select number of teams and leagues, actively participating in their operations. The fund describes its approach as combining “venture-like markets” with “growth equity or private equity-like” risk management.

“We collaborate with controlling owners and contribute substantial operational value,” Nortman explains. The objective is to assist teams in achieving profitability in their core operations, enabling them to benefit from increasing media revenue.

Expanding Beyond Soccer

Monarch’s investment interests extend beyond soccer. The fund is broadly focused on sports with “no product-market risk,” meaning established formats with proven audiences.

“Is this a sport that people enjoy watching on their computer or television?” she asks. “While there are participatory sports, like pickleball, will people actively create an event around watching it?”

Currently, Monarch holds stakes in four “football” clubs, but is also interested in women’s basketball, golf, and tennis – sports with significant media revenue potential and established infrastructure.

Growing Investor Interest

The firm’s limited partners include Melinda French Gates, former Netflix executives, and other high-net-worth individuals, and interest in its mission appears to be increasing. Monarch’s initial fund of $250 million is considerably larger than the $100 million initially planned by Nortman and her co-founder, Jasmine Robinson – a former investor with Causeway, a firm focused on sports, media, gaming, and fitness.

The increased fund size reflects the market’s rapid evolution during Monarch’s fundraising period. “During the fund’s initial raising, nine out of ten conversations expressed doubt about the viability of women’s basketball,” Nortman recalls. However, Caitlin Clark’s rapid ascent and the WNBA’s record-breaking viewership transformed basketball into the most sought-after sector in women’s sports.

An Ecosystem Approach

This growing interest validates Nortman’s belief that investing in women’s sports is not about identifying a single winning team, but about supporting an ecosystem where multiple franchises can flourish. Some teams will achieve championships, while others may struggle competitively but succeed commercially. Sufficient capital and operational expertise distributed across the market are crucial to navigate individual setbacks.

A New Template for Ownership

Angel City is already inspiring other ownership groups. “Other teams – Kansas City, Bay FC, Washington D.C. Spirit – are now emerging with female-led ownership groups, demonstrating their ability to build a viable P&L,” Nortman notes. Angel City has inadvertently become a model.

Cautious Optimism for the Future

As women’s sports enters a period of sustained growth – with the Golden State Valkyries joining the WNBA next season, the NWSL expanding, and media rights deals increasing – Nortman remains cautiously optimistic about whether this moment will differ from previous surges in interest.

She argues that the key lies in fundamental elements: strong league governance, owner commitment, infrastructure investment, and building genuine community connections. Media attention creates opportunities, while operational excellence ensures sustainability.

“Each surge in attention presents an opportunity to create a consistent experience,” Nortman says. “A thorough evaluation of underlying criteria is essential to determine long-term viability.”