Sapphire Sport Spins Out as 359 Capital With $300 Million AUM and Expanded Global Mandate

Sapphire Sport has formally spun out of its parent fund Sapphire Ventures and rebranded as 359 Capital, signalling a sharpened focus on early-stage consumer companies tied to sport, media and entertainment. According to the announcement, the newly independent firm begins life with approximately $300 million in assets under management, bringing across its full portfolio of 30-plus companies and the entire investment team.

Co-founder and Managing Partner Michael Spirito said the new name and structure were long-planned. “We’re all grown up and ready to leave home,” he told the press, adding that the firm’s mission is to “help founders do the impossible” - a nod to its new name’s inspiration, referencing the four-minute mile barrier.

While Sapphire Sport was incubated within Sapphire Ventures, the spin-out comes after seven years of independent operation under the umbrella. Its LP base has always consisted of major sports-industry players including City Football Group, adidas, Madison Square Garden Company, AEG and Sinclair Broadcast Group. This ecosystem of strategic partners is now a core part of 359 Capital’s value proposition - offering portfolio companies access to distribution, brand partnerships and consumer-behaviour insight beyond conventional capital.

Strategically, 359 Capital continues to invest in Series A and Series B rounds, typically writing checks of US$2 million to US$10 million per deal, and is currently midway through deploying its second fund, sized at approximately US$181 million. The firm expects deployment to continue into the first half of 2027 before moving toward a next-generation fund.

For investors and operators in the sports business sector, the emergence of 359 Capital is notable for several reasons. First, it elevates sports-tech investing from a side-arm of generalist VC to a dedicated, standalone platform with institutional momentum. Second, the firm’s LP network underscores a recurring theme: sports business investment is increasingly about those strategic partnerships that transcend capital and tap into fan engagement, media rights, brand-tech convergence and global scale. Third, as consumer behaviour in sporting and wellness contexts continues to shift, funds like 359 Capital that target “consumer-adjacent” models (rather than core teams or leagues) may capture high-growth segments often overlooked by legacy capital.

Looking ahead, the question for stakeholders is how 359 Capital will differentiate in a growing field of sports-tech and consumer-tech investors. With significant competition from funds such as Courtside Ventures (backed by high-profile sports figures) and others targeting similar themes, 359’s edge lies in the depth of its LP-ecosystem and its operational alignment with front-line sports brands. If it can deliver strong exits from its portfolio (which includes companies like Tonal, Beehiiv and Perplexity AI) this spin-out may mark a turning point in how the sports business investment landscape operates.