After 11 years, Sapphire Ventures spins out from SAP and is renamed 359 Capital, an independent fund with around $300M under management. The action formalizes a long-standing split between the sports-first investment franchise and its former platform, while keeping in place the same team, portfolio, and stage strategy.
All 30 of the existing portfolio companies, and the entire investment team, are moving under the new banner. 359 Capital will be led by managing partner and co-founder Michael Spirito, along with colleagues and co-founders David Hartwig and Doug Higgins, and investor Rico Mallozzi, who was promoted to partner. The firm continues to concentrate on Series A and Series B, leading the first round with initial capital ranging between $2M and $10M.
Why the spinout is happening now for 359 Capital’s team
Operating as a standalone firm affords 359 Capital the governance flexibility and brand latitude that specialist managers often seek once they reach scale.
Today, Sapphire Ventures is still in business as a multi-stage firm with around $11 billion in assets under management (AUM), but the sports, media, and entertainment practice had historically been its own investment committee and had a separate limited partner base.
The new name nods to the sub-four-minute mile—a metaphor for supporting founders pursuing what seems impossible until it’s done. In the case of a brand built on early theses in fan engagement, creator tools, AI-led media, or connected fitness, this brand shift suggests an ambition to own a canvas larger than “sport” without sacrificing its lead within that system.
Sports-based LP network dominates the discussion
359 Capital maintains a strategic LP roster that is deeply connected to global sports: City Football Group, Adidas, AEG, Madison Square Garden, Sinclair, and numerous team owners across various leagues. That bench has long been the hallmark of that franchise, offering startups targeted distribution, pilot locations, data access, and high-level customer feedback that generalist capital rarely provides.
This network has also become an early warning system for category shifts—from streaming rights models and athlete-driven content to betting integrations, venue operations, and new sports IP. In practice, that can shorten sales cycles for portfolio companies by aiding LPs in scouting new technologies before they hit the mainstream.
359 Capital’s portfolio focus and Series A–B strategy
The firm’s portfolio includes media and creator infrastructure, AI-enabled information services, games, and connected fitness. Previous investments include Beehiiv, Overtime, Perplexity, Tonal, and Betty Labs, among others. The discipline at the stage of Series A and B is consistent: lead or co-lead, concentrated ownership, and active help on distribution, partnerships, and executive recruiting.
359 Capital will continue to invest from its second fund of $181M, which has plenty of reserves for follow-ons. The firm as a whole manages $300M, but the team finds itself at a sweet spot for specialist investors—big enough to lead big rounds and back winners, yet small enough to be selective and hands-on.
For founders, a team’s smooth transition also counts. Investment cadence, decision velocity, and board participation are consistent; the independent brand offers flexibility on co-investments and competing with other firms.
Competitive landscape and how 359 Capital differentiates
Specialist firms focused on sports and media have seen an updraft as lines blur between fandom, ecommerce, gaming, and live experiences. Courtside Ventures (founded with no less than the backing of marquee athletes) is looking to raise a new $100M fund, according to an SEC filing. Elsewhere, other dedicated platforms and team-affiliated investment arms are increasingly digging into sports tech, data services, and consumer applications.
359 Capital’s differentiation starts with three core pillars: a deep strategic LP bench; an early playbook in AI and creator-led media; and a history of matching consumer insight with enterprise-grade distribution. As teams, leagues, and rights holders lean into direct-to-consumer outlets and data-laden everything, the firm’s knack for bringing buyers and builders together is a physical advantage.
What founders should expect when working with 359 Capital
For startups trying to sell into the sports and media stack—be they content tooling, community and commerce layers, athlete tech, venue automation, or AI search and discovery—the 359 Capital model is built to shorten the distance from pilot to scaled deployment.
Founders can anticipate hands-on assistance in securing lighthouse customers, molding a go-to-market strategy around league and team procurement, and guidance through rights and data governance.
Independence also crystallizes incentives: a dedicated team, aligned carry, and a brand built on doing tough things with best-in-class partners. At $300M AUM, 359 Capital doesn’t show up as a neophyte—they’re a seasoned expert doubling down on a market where distribution is rare and the commodity is authenticity, with timing playing more victor than villain in this churning multi-lap race.
