• Loading stock data...
Friday, November 29, 2024

San Francisco 49ers Owners Are Deep Into Venture Capital

  • Aurum Partners says its investments would rank it in the top decile of all venture capital funds.
  • The fund has made successful exits from giants like Allbirds, Dropbox, and FanDuel.
Stan Szeto-USA TODAY Sports

If you’re not familiar with the San Francisco 49ers ownership structure, I’ll give you a quick rundown. The team is owned by 49ers Enterprises — Denise DeBartolo York and John York are co-chairs and their son Jed York is CEO.

Under Jed York, whose tenure began in late 2008, the 49ers have played in two Super Bowls, but they haven’t been able to capture a title since the 1994 season.

As the team strives to hoist the Lombardi trophy again, Aurum Partners — the York family’s venture capital fund affiliated with the 49ers — has quietly invested in around 40 companies. 

A Family Affair

Brano Perkovich, the 49ers’ Chief Investment Officer and Aurum’s general managing partner, describes the fund as “a direct investing arm focused on private equity of the family office.”

While Aurum, founded in 2014, doesn’t disclose financials, the company says its investments would rank it in the top decile of all venture capital funds based on performance to date.

“The fund, and I use the term fund loosely, doesn’t have any outside capital or limited liability partnerships,” Perkovich explained.

He also said that Aurum can be more patient with opportunities and investments because it’s a family fund that’s built on the premise of operating for generations to come.

Grand Exits

Aurum’s investments range from Squire, a barber shop operations platform, to GreenPark, a sports multiverse product. The fund is more than a family side hustle.

  • Squire received Series B funding from Aurum in 2015. As of June 2021, the company was valued at $750 million.
  • Aurum invested in HR platform Gusto in a Series B round, also in 2015. The company was valued at $9.5 billion in August 2021.
  • Other businesses Aurum is currently invested in include youth sports broadcaster BallerTV, Carrot Fertility, AI platform Satisfi Labs, and tech company Thrive Global.

Aurum has made successful exits from a number of other companies.

  • The fund invested in sustainable sneaker brand Allbirds’ Series A round in 2016 before the company — now valued at $2 billion — went public last year.
  • Live and sporting event payment platform Appetize, which was acquired by SpotOn for $415 million in September 2021, received seed funding from Aurum in 2015.
  • Other exits include Dropbox, FanDuel, and VenueNext, creator of point-of-sale tech used in sports stadiums and other venues.

Perkovich says the current fund’s internal rate of return is about 80%.

Investment Thesis

Aurum is stage and industry-agnostic in its investments.

“We try not to be thematic but opportunistic,” Perkovich said. “Football will always be at the core of what we do in terms of focus and capabilities, but everything we do at the end of the day is consumer centric, whether that’s B2C or B2B2C.”

Categories beyond athletics are appealing because of their even broader mainstream potential, but one of the most important criteria is how closely Aurum can work with its partners.

“The value that we bring to the table has to be above and beyond just writing a check. If companies are coming to us with the sole expectation that we would provide capital and be passive investors, that’s not a situation we want to be a part of.”

The companies in Aurum’s portfolio are able to leverage the 49ers network, which extends to many other professional sports entities. 49ers Enterprises, for example, owns 44% of English Premier League club Leeds United.

“We can call on other teams, other organizations, whether that’s in our league or others, and provide certain solutions,” Perkovich said.

What’s Next?

Historically, Aurum has made around 6-8 investments annually.

“$250,000 is probably the minimum or lower end of what we’d do,” Perkovich said regarding the fund’s bar for entry level investments. “We like to be able to follow up, and that number is a nice sweet spot that we feel like we have skin in the game.”

The fund remains on the hunt for more investment opportunities, despite the recent downturn in the market. There’s the thought that these circumstances may very well even accelerate innovation in the spaces where Aurum is looking to invest.

Either way, two things are for certain: The York family wants more wins on the field from the 49ers, and they’re done keeping quiet about their wins in venture capital.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Nov 4, 2024; Kansas City, Missouri, USA; Recording artist Taylor Swift arrives prior to a game between the Tampa Bay Buccaneers and the Kansas City Chiefs at GEHA Field at Arrowhead Stadium.

The PWHL Could Be Inviting a Date With Taylor Swift’s Legal Team

The Toronto Sceptres may have opened a Pandora’s box of trademark issues.

Chiefs-Texans Game on Peacock Will Feature Madden Alt-Cast

The broadcast will include Madden staples like player ratings and route trees.
Bluesky and Twitter

Why Bluesky Is Not a Serious Threat to Sports Twitter

Bluesky recently hit 23 million total users. That doesn’t touch X/Twitter.

NBA Passes on Thanksgiving Games, Eyes Black Friday Spotlight

The NBA hasn’t played on Thanksgiving since 2010.
podcast thumbnail mobile
Front Office Sports Today

Happy Thanksgiving From FOS Today

0:00

Featured Today

Can an Elite Women’s Soccer School Survive the New College Sports Moneyball?

Santa Clara faces an uphill battle in the new college sports landscape.
Nov 16, 2024; Washington, District of Columbia, USA; Washington Spirit forward Trinity Rodman (2) celebrates after defeating NJ/NY Gotham FC in a 2024 NWSL Playoffs semifinal match at Audi Field. Mandatory Credit:
November 22, 2024

The Washington Spirit’s Business Makeover Carried Them to the Finals

The team’s return to the NWSL championship looks a lot different from 2021.
Nov 18, 2023; Las Vegas, Nevada, USA; Williams Racing driver Logan Sargeant of the United States (2) during the Las Vegas Grand Prix at Las Vegas Strip Circuit.
November 21, 2024

F1 Grand Prix Upended Vegas Last Year. Stakes Are High for Its..

Stakes are high as F1 gears up for a successful second act.
Classic Football Shirts New York Pop-Up
November 18, 2024

Vintage Soccer Jerseys Have Found a Sweet Spot in the Lucrative U.S...

The money-making shirts are at the prime intersection of memorabilia and fashion.

Adam Silver Defends NBA Product Amid Sluggish Ratings

Silver said the NBA compares itself to “the biggest brands in the world.”
May 22, 2024; Minneapolis, Minnesota, USA; Minnesota Timberwolves minority owners Marc Lore and Alex Rodriguez look on in the second half against the Dallas Mavericks during game one of the western conference finals for the 2024 NBA playoffs at Target Center.
October 23, 2024

A-Rod, Lore Deposit $940M As Wolves Ownership Hearing Nears

Rodriguez and Lore made a large escrow deposit in advance of a key upcoming arbitration hearing.
November 11, 2024

Endeavor to Sell OpenBet, IMG Arena to Its CEO Ari Emanuel

The move is “a necessary step” as Endeavor seeks to go private.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
October 22, 2024

Dude Perfect CEO’s Task: Make the Dudes a Media Company

Dude Perfect’s new CEO wants fans to be able to experience the brand in person.
Feb 13, 2023; Beverly Hills, CA, USA; Disney CEO Bob Iger arrives at the 95th Oscars nominees luncheon at the Beverly Hilton in Beverly Hills, Calif. on Monday, Feb. 13, 2023.
October 21, 2024

Bob Iger’s Successor Won’t Be Named Until 2026

Iger’s current contract expires at the end of 2026.
August 28, 2024

New York First: Yankees and MSG Go All In on Live Sports Streaming Pact

The YES Network and MSG Networks will offer their content in a combined streaming app.
August 28, 2024

ESPN’s Pitaro: RSN Turmoil An Opportunity to Expand Local Game Coverage

ESPN chairman Jimmy Pitaro highlights a fast-developing regional content strategy.