Sapphire Sport Spins Out as 359 Capital With $300 Million Under Management

359 Capital, a newly independent venture firm spun out of Sapphire Ventures , has officially launched with $300 million in assets under management , marking a strategic rebrand for one of the earliest institutional investors focused on the intersection of sports, media, and consumer technology.

Originally founded in 2018 as Sapphire Sport , the fund backed companies such as Overtime, Tonal and Perplexity while operating under Sapphire’s umbrella. As the sports investment landscape grew more crowded, the team chose to spin out to clarify its mandate and broaden its scope.

The firm will continue investing at the early and mid-stages, but with a wider lens on consumer and consumer-adjacent businesses shaping fan behaviour and digital engagement.

Managing partner Michael SpiritoDealroom has a profile for this one. Try Dealroom → , who co-founded Sapphire Sport and now leads 359 Capital, said the separation was driven by the need to distinguish the firm from traditional “sports team deal” investors. “We are a consumer and consumer-adjacent investment firm, and we have an extraordinary group of limited partners,” he said. The rebrand, he added, allows the firm to highlight and more actively leverage its extensive LP network.

359 Capital retains its full team, existing portfolio, and limited partners. Its investor base includes major names across the sports and entertainment industries—among them AdidasDealroom has a profile for this one. Try Dealroom →, AEGDealroom has a profile for this one. Try Dealroom →, Delaware NorthDealroom has a profile for this one. Try Dealroom →, MSG SportsDealroom has a profile for this one. Try Dealroom →, Sinclair Broadcast GroupDealroom has a profile for this one. Try Dealroom → , and City Football GroupDealroom has a profile for this one. Try Dealroom → , the anchor investor in both of the firm’s existing funds.

Spirito said Fund II, raised in 2023, is roughly half deployed, with new investments expected over the next 18–24 months. A third fundraise is likely to begin late next year. Sapphire Ventures will no longer be a general partner but will retain an economic interest in the spun-out firm.

Sources:
TechCrunch
Sports Business Journal

J.V.