Almost seven years after launching its inaugural fund, Sapphire Sport—a venture capital fund dedicated to sports, media, and entertainment—has decided to separate from Sapphire Ventures. The fund will now operate as an independent firm under the new name, 359 Capital.
The new title, 359 Capital, pays homage to the achievement of running a mile in under four minutes, a milestone once thought unattainable until it was conquered through relentless effort and commitment. According to Spirito, the name embodies the firm’s mission to empower founders in their portfolio to accomplish what seems impossible.
Michael Spirito, managing partner and co-founder of 359 Capital, explained that the split from Sapphire Ventures—which manages around $11 billion in assets—had always been part of their long-term plan. “We’ve matured and are ready to strike out on our own,” he said.
Sapphire Sport, now midway through deploying its second fund totaling $181 million, has always had its own distinct group of limited partners, separate from Sapphire Ventures. These LPs are all closely connected to the sports sector, featuring prominent organizations such as City Football Group, adidas, AEG, Madison Square Garden, Sinclair, and numerous team owners.
“Back in 2019, we didn’t just pick the name Sapphire Sport because it had a nice ring to it,” Spirito noted. “The word ‘Sport’ truly represented our LP base.”
Now, seven years on, these sports-centric LPs continue to use their partnership with the firm to stay informed about new technology companies shaping the sports and media industries, Spirito added.
Among the startups supported by 359 Capital are Beehiiv, a platform for newsletter creators; an online casino; Betty Labs, which focuses on sports media; Overtime, an AI-powered search engine; Perplexity, a leading AI browser; and Tonal, a smart home gym system.
All 30 companies in the firm’s portfolio, along with its entire investment team, will transition to 359 Capital. The team making the move includes Spirito, Sapphire Ventures co-founders David Hartwig and Doug Higgins, as well as newly elevated partner Rico Mallozzi.
As 359 Capital, the firm will maintain its focus on Series A and Series B investments, typically providing between $2 million and $10 million per deal. Spirito said they plan to continue investing from their second fund through at least the first half of 2027.
359 Capital will be entering a competitive field of sports-oriented venture capital. Courtside Ventures, which counts Shaquille O’Neal and Michael Jordan among its backers, is currently working to raise its fourth fund, targeting $100 million, according to an SEC filing.
