VC Kara Nortman bet early on women’s sports, and now she’s creating the market

As the season wrapped up earlier this month, Angel City FC, the Los Angeles soccer team co-founded by venture capitalist Kara Nortman, finished 11th out of 13 teams, marking a disappointing end to their campaign. However, this outcome is just one piece of a much larger narrative that is transforming the investment landscape in women's sports. Despite the team's struggles on the field, Angel City has emerged as a noteworthy case study, even being featured in Harvard Business School curriculum, showcasing innovative strategies for establishing a women's sports franchise. With an ownership group that includes celebrities like Natalie Portman and Serena Williams, the club has generated significant buzz and secured record sponsorship deals prior to its inaugural matches. "We transitioned from zero to $30 million in revenue, selling out games and creating something that many thought unfeasible," Nortman shared in a recent interview, emphasizing the commercial achievements that have been realized since the team's inception. This commercial success has laid the groundwork for the Monarch Collective, a groundbreaking $250 million fund launched by Nortman in 2023, which focuses exclusively on investing in women's sports. While Angel City has yet to clinch a playoff victory, the fund's influence has expanded significantly, now holding stakes in three additional National Women’s Soccer League teams: San Diego Wave, Boston Legacy FC (set to debut next year), and the recently acquired FC Viktoria Berlin in Germany. This acquisition makes Monarch the first foreign investor in a German women's soccer club, underscoring Nortman's belief that women's sports are at a pivotal turning point, irrespective of the performance of any single team. The statistics bolster Nortman’s optimism; the global men's sports market is valued at approximately half a trillion dollars, while the women's sports market, which was estimated at about half a billion dollars in 2023, has surged to nearly $3 billion. Nortman insists that capitalizing on this growth necessitates a different strategy than that traditionally employed in men’s sports. She highlights unique marketing tactics, such as themed events and partnerships, that have helped Angel City create unprecedented excitement, resulting in a $250 million majority stake acquisition by power couple Bob Iger and Willow Bay, making it the most valuable franchise in women's sports globally. Nortman, who transitioned from a conventional venture capital background to dedicate her efforts to women's sports, believes that Angel City’s financial success validates her investment thesis. Despite the current tension between the team's business achievements and on-field results, Angel City has demonstrated that with the right elements in place, women's sports can indeed generate substantial revenue. However, she remains mindful of the need for sustained momentum, recalling the historical context of women's football in the early 20th century, when a ban effectively sidelined the sport for decades. Nortman stresses that while attention on breakout stars can drive initial interest, long-term success requires a commitment to infrastructure, governance, and operational excellence. Monarch's approach differs from typical venture capital by focusing on concentrated investments in a limited number of teams and leagues, allowing for active involvement in their operations. The strategy aims to facilitate teams achieving financial stability, preparing them to benefit from growing media revenues. Looking beyond soccer, Monarch is also exploring investment opportunities in women's basketball, golf, and tennis—sports with established viewership and revenue potential. The fund has drawn interest from notable partners, including Melinda French Gates and former Netflix executives, and has exceeded initial fundraising expectations, reflecting a growing recognition of the value in women's sports. As women's sports enter what appears to be a sustained growth phase—with new teams emerging and broadcasting deals expanding—Nortman remains cautiously optimistic, emphasizing the importance of strong league governance, commitment from team owners, and community engagement. "Operational excellence is essential for sustainability," she concludes. "Every spike in interest is an opportunity to foster a lasting presence in the sports landscape."