Almost seven years after announcing its first fund, Sapphire Sport – the venture fund focused on sports, media and entertainment – is being launched by Sapphire Ventures. The fund will be rebranded as an independent venture company, 359 Chapter.
The company’s new name is a tribute to the sub-four-minute mile, a feat once thought humanly impossible but ultimately achieved through sheer dedication and perseverance. 359 Chapter Co-founder and managing partner Michael Spirito said the name reflects the company’s core principle of helping its portfolio founders achieve the impossible.
A split from Sapphire Ventures, an investment firm with about $11 billion in assets under management, was always “in the pipeline,” Spirito said. “We’re all grown up and ready to leave home.”
Sapphire Sport, which is currently halfway through its $181 million second round of investment, has always maintained a separate group of limited partners from Sapphire Ventures. His LPs are all deeply connected to the sports industry, including big names like City Football Group, adidas, AEG, Madison Square Garden, Sinclair and dozens of team owners.
“When we started in 2019, the Sapphire Sport name wasn’t just about solidarity and it sounded cool,” said Spirito. “Sport took over the LP band.”
Seven years later, sports-focused LPs still leverage their relationship with the firm to gain insights into emerging technology companies in the media and sports landscape, Spirito said.
Some of the startups that 359 Capital has backed include Beehiiv, a creator-focused newsletter; an online casino, Betty Labs. a sports media platform. Overtime, an AI search engine. Perplexity, a successful AI browser. and Tonal, a home fitness system.
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The firm’s entire portfolio of 30 companies and all of its investment staff will be transferred to 359 Capital. The transition staff includes Spirito, Sapphire Ventures co-founders David Hartwig and Doug Higgins, and recently promoted partner Rico Mallozzi.
As 359 Capital, the firm will continue to focus primarily on Series A and Series B startups, writing checks between $2 million and $10 million. The firm will continue to invest from its second fund through the first half of 2027, Spirito said.
359 Capital will have high-profile competition in the sports-focused venture capital world. Courtside Ventures, backed by Shaquille O’Neal and Michael Jordan, is in the process of raising a fourth fund of $100 million, according to one SEC filing.
