Sapphire Sport Becomes 359 Capital
Backed by iconic LPs across sports, media, and entertainment, 359 Capital will operate as a fully independent firm focused on consumer and consumer-adjacent innovation
The firm brings its entire team, $181 million Fund II, $300 million in assets under management and a portfolio of more than 30 companies
NEW YORK, Nov. 10, 2025 /PRNewswire/ -- Sapphire Sport today announced that it has become 359 Capital, a move that reinforces the firm's singular focus on consumer and consumer-adjacent innovation and strong pathways into sport, media and entertainment. The transition brings the entire investment team, $181 million Fund II, $300 million in assets under management and a portfolio of more than 30 companies to the newly independent firm. The announcement underscores the firm's commitment to leveraging its distinctive ecosystem of iconic limited partners from the worlds of sports, media, and entertainment to drive transformational growth for portfolio companies.
"Becoming 359 Capital represents both a culmination of what we've built and a catalyst for where we're going," said Michael Spirito, managing partner and co-founder, 359 Capital. "Over the past eight years, we have assembled what we believe is the most differentiated LP base in venture capital—including partners like City Football Group, adidas, AEG, Madison Square Garden, Sinclair, and dozens of team owners—all of whom recognize the massive opportunity in early- to mid-stage investment in the consumer market. This spin-out allows us to create a distinct brand and platform that reflects our specialized craft and the unique value we deliver to our founders and limited partners alike."
Sapphire Sport was incubated within Sapphire Ventures, a global software venture capital firm with more than $11 billion in AUM, and over 30 public listings and over 50 acquisitions. As Sapphire continues to invest in series B through pre-IPO B2B software and AI companies, as well as in early-stage venture fund managers, 359 Capital is pursuing a distinct strategy focused exclusively on early to mid-stage consumer and consumer adjacent opportunities. The decision to operate independently enables 359 Capital to sharpen its brand identity and double down on its investment thesis.
"Focus in this industry is incredibly important and we at Sapphire Ventures feel that 359 Capital's strategy is highly specialized, with an investor base to reflect that," said Nino Marakovic, CEO, Partner and Founder of Sapphire Ventures. "We are proud that Sapphire Ventures was able to play its part in helping launch the strategy, but the team deserves all the credit since, and we believe their future is bright."
359 Capital has already established a strong track record backing companies in the areas of next-generation media, digital commerce, gaming, application-layer AI and wellness. The firm's portfolio includes beehiiv, Backbone, Betty, Bounce, Fevo, Overtime, Perplexity and Tonal and other category-defining businesses that are reshaping how consumers discover, engage. and transact in the digital era.
The firm's limited partner base represents an unparalleled competitive advantage in the venture investing ecosystem. With strategic relationships spanning professional sports leagues, global brands, entertainment conglomerates and team ownership groups, 359 Capital provides portfolio companies with access to distribution channels, consumer insights and partnership opportunities that extend far beyond traditional capital sources. This network effect creates compounding value as portfolio companies collaborate, share learnings and unlock synergies across the 359 Capital community.
"In a crowded and noisy market, focus differentiation matters more than ever," said Spirito. "Our LPs aren't passive investors; they're active participants in our ecosystem and on our platform. Whether it's testing new products with massive fan bases, exploring partnership opportunities, or providing real-time feedback on consumer trends, our ecosystem delivers strategic value at every stage of growth. Operating as 359 Capital allows us to amplify this advantage and double down on the platform we have built."
The firm takes its name from a barometer of excellence, the four-minute mile, which was a formerly impossible undertaking only made possible through perseverance as well as the help of others. In helping founders to do the impossible, while maintaining a standard of excellence in conjunction with its LPs, 359 Capital aims to continue its fervent commitment to supporting entrepreneurs and the dedication required to build enduring businesses in today's dynamic market.
In addition to Spirito, the 359 Capital team consists of board partner and co-founder Doug Higgins, and partner David Hartwig, who along with Higgins was also a co-founder of Sapphire Ventures. Rico Mallozzi has also been promoted to partner of 359 Capital. CFO Joshua Gilbert, associates Mackenzie Chapman and Andrew Yanover, and EA Alyce Fusco fill out the full team.
About 359 Capital
359 Capital is the first-of-its-kind venture capital firm that brings together the capital and industry experience of premier global sports, media, and entertainment brands. With ~$300M in assets under management, 359 Capital backs Seed to Series C consumer and consumer adjacent companies, providing connectivity into difficult-to-penetrate markets as represented by its unique LP base. This group includes City Football Group, Sinclair, MSG, AEG, adidas, Bank of Montreal and owners, and investors from all major U.S. sports leagues.
SOURCE 359 Capital
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