Angel City FC, a women’s soccer franchise based in Los Angeles, may have finished 11th out of 13 teams in its season, but the team’s off-field success has captured the attention of investors and sports enthusiasts alike. Co-founded by venture capitalist Kara Nortman in 2020, Angel City has become a case study in how to build a successful women’s sports property.
Despite its on-field struggles, Angel City has seen unprecedented buzz thanks to its celebrity ownership group, which includes Natalie Portman and Serena Williams. The team has been innovative in its approach to sponsorships, breaking records before even playing a game. This commercial success led to the formation of Monarch Collective, a $250 million fund launched by Nortman in 2023, focusing exclusively on women’s sports investments.
Monarch Collective has expanded its portfolio beyond Angel City to include stakes in three other National Women’s Soccer League clubs, including the recent acquisition of 38% of FC Viktoria Berlin, making it the first foreign investor in a German women’s soccer team. Nortman believes that women’s sports have reached a turning point, with the market growing substantially in recent years.
The success of Angel City and Monarch Collective has drawn attention to the potential of women’s sports as a lucrative investment opportunity. Nortman’s approach to investing in women’s sports differs from traditional venture capital, focusing on concentrated positions in a few teams and leagues and actively getting involved in operations to ensure sustainability and profitability.
Monarch Collective’s interest extends beyond soccer to other sports like basketball, golf, and tennis, with a focus on established formats with proven audiences and media revenue potential. The fund’s limited partners include prominent figures like Melinda French Gates and former Netflix executives, indicating growing interest in investing in women’s sports.
As women’s sports continue to gain momentum, Nortman emphasizes the importance of consistent hard work and investment in infrastructure to ensure long-term success. By taking a strategic and hands-on approach to investing, Monarch Collective aims to support women’s sports properties in reaching their full potential and tapping into the growing market for women’s sports globally. Women’s basketball has seen a significant growth in the market during Monarch’s fundraising period, according to Nortman. Initially met with skepticism, the sport has gained momentum with the rise of players like Caitlin Clark and the record-breaking viewership of the WNBA. This surge in interest has proven Nortman’s belief that investing in women’s sports is about supporting an ecosystem where multiple franchises can succeed.
Angel City’s success has inspired other ownership groups to enter the market, with teams like Kansas City, Bay FC, and Washington D.C. Spirit following suit. This trend indicates a shift towards female-led ownership groups showing viability in building profitable teams. Angel City has set a precedent for others to emulate.
The women’s sports industry is experiencing a boom period, with new teams like the Golden State Valkyries joining the WNBA and the NWSL expanding. Media rights deals are also on the rise, signaling a promising future for the industry. Nortman remains cautiously optimistic about the longevity of this growth, emphasizing the importance of strong league governance, owner commitment, infrastructure investment, and community connections for sustainable success.
According to Nortman, every spike in interest presents an opportunity to create a consistent and lasting experience for fans. By focusing on the core criteria of success, such as league governance and community engagement, the women’s sports industry can ensure its continued growth and success in the long term.