Sapphire Sport Becomes 359 Capital With $300M in Assets
Sapphire Sport, the venture capital firm dedicated to media, sports, and entertainment, has officially separated from parent company Sapphire Ventures. The firm is rebranding as 359 Capital and will operate as an independent entity with $300 million in assets under management (AUM).
The new identity draws inspiration from the sub-four-minute mile, a milestone once considered physically unattainable. According to managing partner and co-founder Michael Spirito, the name encapsulates the firm’s commitment to helping portfolio founders push boundaries and achieve results that were previously deemed impossible.
Strategic Independence
The transition marks the conclusion of a long-term plan to establish the firm as a standalone business. “We’re all grown up and ready to leave home,” said Spirito, noting that the separation from the $11 billion Sapphire Ventures was part of the firm’s original vision.
Despite the separation, the firm maintains its distinct base of limited partners (LPs). These stakeholders are heavily integrated into the sports sector and include organizations such as:
- City Football Group
- adidas
- AEG
- Madison Square Garden
- Sinclair
Investment Focus and Portfolio
The entire investment team, including co-founders David Hartwig and Doug Higgins and newly promoted partner Rico Mallozzi, will transition to 359 Capital alongside the firm’s existing portfolio of 30 companies. Notable investments include:
- Perplexity (AI search engine)
- Beehiiv (creator-focused newsletter)
- Tonal (home gym system)
- Overtime (sports media platform)
- Betty Labs (online casino)
The firm plans to continue its focus on Series A and Series B funding rounds, typically deploying between $2 million and $10 million per check. Spirito confirmed that the team will continue investing from its current $181 million second fund through the first half of 2027.
Market Competition
359 Capital enters the independent market amid rising interest in sports-focused venture capital. The firm faces competition from established players such as Courtside Ventures, which is currently raising a $100 million fourth fund with backing from high-profile figures like Michael Jordan and Shaquille O’Neal, according to SEC filings.