Sapphire Sport launched, rebranded as 359 Capital with $300 million in assets under management

Nearly seven years after announcing its first fund, Sapphire Sport – a venture fund focused on sports, media and entertainment – ​​has spun off from Sapphire Ventures. The fund will be renamed as an independent investment company, 359 Capital.

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

Splitting with Sapphire Ventures, an investment firm with roughly $11 billion in assets under management, was always on his “vision board,” Spirito said. “We are all grown up and ready to leave home.”

Sapphire Sport, which is currently halfway through investing its $181 million second fund, has always maintained a separate group of limited partners from Sapphire Ventures. All of its limited partners are closely connected to the sports industry, including major names such as City Football Group, adidas, AEG, Madison Square Garden, Sinclair and dozens of team owners.

“When we started in 2019, the Sapphire Sport name wasn’t just a homogeneous name and it sounded cool,” Spirito said. “Sports has taken over the LP collection.”

Seven years later, the sports-focused limited partners are still leveraging their relationship with the company to gain insight into emerging technology companies across the media and sports landscape, Spirito said.

Some of the startups backed by 359 Capital include Beehiiv, a creator-focused newsletter; Online Casino, Betty Labs; Sports media platform; Overtime, an AI-powered search engine; Perplexity, the successful AI browser; and Tonal, a home exercise system.

The firm’s entire portfolio of 30 companies and all of its investment staff will move to 359 Capital. The transitioning team includes Spirito, Sapphire Ventures co-founders David Hartwig and Doug Huggins, 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 ranging from $2 million to $10 million. Spirito said the company will continue investing from its second fund until the first half of 2027.

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, It is raising a fourth fund worth $100 million, according to a Securities and Exchange Commission filing.