Angel City FC’s season concluded early this month, with the team landing in 11th place out of 13, a disappointing outcome for the Los Angeles-based soccer club co-founded by venture capitalist Kara Nortman in 2020. However, the season’s difficulties only reflect a portion of a larger narrative that is changing how investors perceive women’s sports.
Despite its less-than-stellar performance on the field, Angel City has emerged as a model (even studied at Harvard Business School) for effectively building a women’s sports enterprise. The team’s high-profile ownership group, which includes Natalie Portman and Serena Williams, has been instrumental in generating considerable excitement. The franchise has also demonstrated expertise in securing sponsorships, setting new benchmarks even before any games were played.
“We jumped from zero to $30 million in revenue. Our games were sold out. We accomplished something many thought impossible,” Nortman stated in a recent interview, highlighting Angel City’s early commercial triumph. “That directly influenced the creation of Monarch.”
That commercial success, instead of championship wins, served as the basis for Monarch Collective, the $250 million fund Nortman established in 2023, becoming the first investment fund solely focused on women’s sports. While it originated with a team that is still seeking its first playoff victory, Monarch’s portfolio and influence now extend well beyond Angel City’s training grounds in Thousand Oaks, California.
The fund currently holds shares in three additional National Women’s Soccer League teams: San Diego Wave, Boston Legacy FC (launching next year), and its most recent investment, announced earlier this month, FC Viktoria Berlin. The acquisition of 38% of the German club, makes Monarch the first foreign investor to own part of a German women’s soccer organization.
This diverse collection shows Nortman’s strong belief that women’s sports are at a turning point, irrespective of any one team’s results. The statistics also back up her positive outlook.
“The global men’s sports market is estimated at around half a trillion dollars,” Nortman explains. “When we launched Monarch in 2023, the women’s sports market was believed to be approximately half a billion dollars. Now, it’s closer to $3 billion.”
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To capitalize on that expansion, Nortman argues, a different strategy is needed compared to men’s sports. It’s not as simple as replicating what has already been done. “I mean, how many men’s team owners consider things like dropping Sephora boxes from the stadium rafters? Or, at a [New York] Liberty [WNBA game], having a Fenty cam for applying [Fenty] lipstick, or Angel City hosting a Hello Kitty collaboration night where fans struggle to find merchandise before it sells out?”
Angel City’s inventive approach to marketing and partnerships was key to generating significant buzz, leading to power couple Bob Iger and Willow Bay acquiring a majority stake for $250 million last fall, making it the most valuable women’s sports franchise worldwide.
For Nortman, who transitioned from Upfront Ventures and conventional venture capital to dedicate herself fully to women’s sports, Angel City’s commercial successes have consistently reinforced Monarch’s core belief. While there’s current debate – particularly in sports media – regarding Angel City’s business success versus its on-field record, the team has certainly demonstrated that women’s sports can produce substantial revenue when the right elements are in place.
Now, as with any successful new undertaking, the central question is whether the momentum can be sustained. Nortman is keenly aware of previous instances where promising developments in women’s sports faded away. She often points to a striking historical parallel from 1920, when 60,000 spectators gathered in Liverpool, England, to watch the Dick, Kerr Ladies play football, a larger crowd than many Premier League matches attract today. The following year, the English Football Association prohibited women from playing, and the sport effectively vanished for several decades.
“Each person gets to feel like they’re discovering women’s sports when they get involved,” Nortman says. “However, consistent, diligent work is necessary to ensure that translates into lasting success.”
She contends that this hard work requires more than just capitalizing on the attention generated by rising stars like Caitlin Clark or Angel Reese. It necessitates systematic investment in infrastructure, governance, and operations – the less glamorous aspects of establishing sustainable businesses.
This is where Monarch’s strategy differs from typical venture capital. Rather than making small investments in numerous startups, Monarch is focusing on significant stakes in a select number of teams and leagues, taking an active role in their operations. The fund describes its strategy as “venture-like markets” combined with “growth equity or private equity-like” risk management.
“We collaborate with controlling owners and contribute considerable operational value,” Nortman explains. The aim is to help teams achieve breakeven or profitability in their core operations, positioning them to gain from the expanding higher-margin media revenue.
Monarch’s investment interests are not limited to soccer. The fund has a wider focus on what Nortman refers to as sports with “no product-market risk,” meaning well-established formats with demonstrated audience interest.
“Do people enjoy watching this sport on their computer or television?” she asks. “There are participatory sports, like pickleball, but will people stay home and make an event out of watching it?”
While Monarch currently has investments in four “football” clubs, it is also exploring opportunities in women’s basketball, golf, and tennis – sports with considerable potential for media revenue, alongside existing infrastructure.
The firm’s current limited partners include Melinda French Gates, former Netflix executives, and other affluent individuals, with increasing interest in its mission. For instance, Monarch’s initial fund of $250 million significantly exceeded the $100 million that Nortman and her co-founder – Jasmine Robinson, previously an investor at Causeway, a growth-stage firm specializing in sports, media, gaming, and fitness – initially planned to raise. She attributes the increased size to the market’s rapid development during Monarch’s fundraising efforts.
“When we began raising the fund, nine out of ten conversations were along the lines of, ‘We’re not convinced that [women’s] basketball is really viable,'” Nortman recalls, noting considerable skepticism. Then Caitlin Clark’s explosive rise occurred, the WNBA saw record-breaking viewership, and suddenly basketball became the most sought-after sector in women’s sports.
That increasing interest reinforces Nortman’s belief that investing in women’s sports isn’t about identifying a single winning team, but rather about supporting an ecosystem where multiple franchises can flourish. Some will secure championships, while others might struggle competitively but achieve commercial success. The crucial aspect is having sufficient capital and operational expertise spread across the market to withstand individual setbacks.
Angel City already seems to be inspiring other ownership groups. “You started seeing other teams – Kansas City, Bay FC, Washington D.C. Spirit – with female-led ownership groups emerge and demonstrate that they could develop a viable P&L,” Nortman points out. Whether intended or not, Angel City became a blueprint.
As women’s sports enters what appears to be a period of sustained growth — the Golden State Valkyries are preparing for their inaugural WNBA season, the NWSL is expanding, and media rights deals are increasing — Nortman remains cautiously optimistic about whether this period will differ from prior surges in interest.
She believes the key lies in the fundamentals: robust league governance, owner commitment, infrastructure investment, and building authentic community connections. Media attention creates opportunities, while operational excellence ensures sustainability.
“Every surge presents an opportunity to establish a consistent experience around it,” Nortman says. “You have to analyze all the underlying factors to determine where it is likely to endure.”
