When the season concluded earlier this month, Angel City FC finished in a disappointing 11th place out of 13 teams in the National Women’s Soccer League. Despite this lackluster performance, the Los Angeles soccer franchise, co-founded by venture capitalist Kara Nortman in 2020, has emerged as a significant player in shaping the future of women’s sports investment. Angel City has become a case study, featured even in Harvard Business School, showcasing how to effectively build a women’s sports property.
The team’s celebrity ownership group, which includes notable figures like Natalie Portman and Serena Williams, has generated unprecedented excitement around the franchise. Nortman highlighted the organization’s commercial success, stating, “We went from zero to $30 million in revenue. We sold out games. We built something people didn’t think was possible.” This success, despite the team’s on-field struggles, laid the groundwork for the formation of Monarch Collective, a $250 million fund launched by Nortman in 2023. This fund is recognized as the first investment vehicle focused exclusively on women’s sports.
Monarch Collective has broadened its influence beyond Angel City’s training facility in Thousand Oaks, California. The fund now holds stakes in three other National Women’s Soccer League teams: the San Diego Wave, Boston Legacy FC (set to debut next year), and its latest acquisition, announced earlier this month, FC Viktoria Berlin. The deal for a 38% stake in the German club marks Monarch as the first foreign investor to acquire ownership in a German women’s soccer team. This diverse portfolio reflects Nortman’s belief that women’s sports are at a critical juncture, irrespective of the individual fortunes of any one team.
Data supports Nortman’s optimism. The global men’s sports market is estimated to be worth approximately $500 billion, while the women’s sports market, valued at about $500 million when Monarch was established, has since surged to nearly $3 billion. “Tapping into that growth requires a different playbook than men’s sports,” Nortman explained. She emphasized that the approach is not merely replicating successful strategies from men’s sports.
Innovative marketing strategies have played a vital role in Angel City’s success. Nortman mentioned unique promotions, such as collaborations with popular brands like Hello Kitty and Sephora, which have engaged fans in new ways. Last year, the franchise attracted considerable attention when power couple Bob Iger and Willow Bay acquired a majority stake for $250 million, positioning Angel City as the most valuable women’s sports franchise globally.
Nortman, who shifted her focus from traditional venture capital to women’s sports, sees Angel City’s achievements as validation of Monarch’s investment thesis. Despite the ongoing discourse regarding the team’s competitive performance, its financial success underscores the potential for women’s sports to generate substantial revenue when the right elements are in place.
The question remains whether this momentum can be sustained. Nortman recalls a striking historical parallel from 1920, when 60,000 spectators attended a match featuring the Dick, Kerr Ladies in Liverpool, a crowd surpassing many Premier League games today. The following year, the English Football Association banned women from playing, leading to decades of decline. “Everyone gets to wake up and become the discoverer of women’s sports when they do,” Nortman stated. “But it takes consistent, hard work to get that to play out into consistency.”
Nortman advocates for systematic investment in the infrastructure and governance necessary to build sustainable businesses. Monarch’s approach departs from typical venture capital practices. Instead of making passive investments across numerous startups, Monarch focuses on a select few teams and leagues, becoming actively involved in their operations. The fund aims to help these organizations reach breakeven or profitability, enabling them to thrive as media revenue grows.
Monarch’s focus extends beyond soccer. Nortman is also interested in women’s basketball, golf, and tennis — sports with substantial media revenue potential and established audiences. Current partners of Monarch include high-profile individuals such as Melinda French Gates and former executives from Netflix, indicating increasing interest in the fund’s mission.
The initial fundraising goal for Monarch was $100 million, but the final amount raised reflects the rapid maturation of the market during the fundraising period. Nortman noted that early conversations often expressed skepticism about women’s basketball, but the recent rise of stars like Caitlin Clark and record-breaking viewership in the WNBA have shifted perspectives.
Nortman believes that investment in women’s sports is not about identifying a single ideal team but about fostering an ecosystem where multiple franchises can thrive. Some teams will achieve championships, while others may struggle competitively but succeed commercially. The key is ensuring adequate capital and operational expertise to navigate individual challenges.
Angel City has inspired other ownership groups, encouraging teams like Kansas City, Bay FC, and Washington D.C. Spirit to establish female-led ownership structures that demonstrate viable profit and loss management. As women’s sports appears to be entering a sustained growth phase, Nortman remains cautiously optimistic. Recent expansions in leagues and increasing media rights deals signal a promising future.
The importance of strong league governance, committed ownership, and community engagement cannot be overstated. Nortman emphasizes that while media attention creates opportunities, operational excellence is essential for sustainability. “Every spike is an opportunity to create a consistent experience around it,” she asserts. Ultimately, it is the underlying criteria that will determine whether this moment is different from previous surges in interest.
