Sapphire Sport spins out, rebrands as 359 Capital with $300M AUM

After nearly seven years of operation under the Sapphire Sport banner, the venture fund dedicated to sports, media, and entertainment is officially transitioning into its own entity, now called 359 Capital. This rebranding marks a significant milestone as the firm steps away from Sapphire Ventures, which boasts approximately $11 billion in assets under management. The name 359 Capital pays homage to the legendary sub-four-minute mile, a barrier once thought insurmountable but achieved through relentless effort and commitment. Michael Spirito, co-founder and managing partner of the newly independent firm, expressed that this name reflects their mission to empower portfolio founders in reaching extraordinary goals. "We’re all grown up and ready to leave home," Spirito remarked, indicating that this separation was a long-term vision. Currently, 359 Capital is in the midst of deploying its second fund, which totals $181 million, while maintaining a distinct group of limited partners who have always been separate from Sapphire Ventures. These investors have strong ties to the sports sector, including renowned organizations such as City Football Group, adidas, AEG, and Madison Square Garden, along with numerous team owners. Reflecting on the firm’s origins, Spirito noted that the name Sapphire Sport was not just catchy; it was a reflection of their investor base. Now, seven years later, those sports-focused LPs continue to leverage their connections with the firm for insights into emerging technologies within the media and sports domains. Among the startups backed by 359 Capital are notable names like Beehiiv, a platform for creators; an online casino; Betty Labs, a sports media entity; Overtime, an AI-driven search tool; Perplexity, a successful AI browser; and Tonal, a home fitness system. All 30 companies in the firm’s portfolio, along with its investment team, will transition to the new identity. As 359 Capital, the firm plans to concentrate primarily on Series A and B investments, typically ranging from $2 million to $10 million. Spirito confirmed that they will continue funding from their second fund until the first half of 2027. However, they will face stiff competition in the realm of sports-focused venture capital, particularly from Courtside Ventures, which is currently raising a fourth fund of $100 million, backed by sports icons like Shaquille O’Neal and Michael Jordan.