The $1 Billion Opportunity: Kara Nortman’s Bet On Women’s Sports

At the 2015 Women’s World Cup final, as the U.S. team clinched victory amidst an electric crowd, venture capitalist Kara Nortman faced an unexpected challenge: she couldn’t find World Cup jerseys for her daughters. This disconnect between the stadium’s palpable excitement and the lack of accessible merchandise sparked a curiosity that would reshape Nortman’s career.

“I couldn’t get my head around it,” Nortman shared in our recent interview. “Everyone said, ‘You’re the only one who wants to watch women play soccer more than once every four years.’ But there were so many more people on Instagram than me. I didn’t think this was right.”

As a partner at venture firm Upfront Ventures, Nortman had built a successful career identifying promising startups in the male-dominated tech industry. Now, she was about to apply that same acumen to another field where women’s contributions have been historically undervalued.

The landscape of women’s sports Nortman entered was one of vast untapped potential. Despite passionate fanbases, women’s sports have been chronically undervalued by advertisers, broadcasters, and investors. However, recent years have seen a significant shift. The value of women’s sports is expected to surpass $1 billion in 2024, with revenues growing at 16% annually. Viewership is also on the rise, with the 2023 FIFA Women’s World Cup drawing a record-breaking global audience of 2 billion viewers, a 30% increase from the 2019 tournament. Additionally, women’s sports sponsorship deals have seen a 20% year-over-year increase since 2020.

Nortman’s growing interest in women’s sports led to an advisory role with the US Women’s National Team Players Association. A shared passion for advancing women’s sports connected her with actress Natalie Portman, sparking an ambitious idea. Together with Julie Uhrman, they co-founded Angel City FC, an NWSL expansion team in Los Angeles.

“We went from zero to north of 30 million [fans] in two years,” Nortman says, highlighting their rapid success. Angel City FC quickly became one of the most valuable teams in women’s soccer, with a recent valuation approaching $200 million. The team didn’t just add another franchise to the league; it reimagined sports ownership and community engagement. Their approach to sponsorships and community involvement set new standards in the industry, with NWSL Commissioner Jessica Berman noting how they reflected “the immense potential for growth in women’s sports when approached with forward-thinking business models.”

Building on the success of Angel City FC, Nortman co-founded the $150 million investment firm Monarch Collective in 2023 with her partner Jasmine Robinson focused on women’s sports. We are a non-concessionary impact fund,” Nortman explains. “We hope to be the best returning platform out there, but also we have real impact metrics and we hold true to them.” The fund aims to capitalize on the growing women’s sports market, investing in teams, leagues, and adjacent businesses.

While recent events like Caitlin Clark’s record-breaking performances in NCAA women’s basketball have brought increased attention to women’s sports – what Nortman calls many people’s “Christopher Columbus moment” – she is quick to point out that this success isn’t an overnight phenomenon. “The WNBA was packing arenas 25 years ago,” she notes, emphasizing the long-standing appeal of women’s sports that has often been overlooked.

For Nortman, the creation of Monarch Collective wasn’t just a career pivot; it was the culmination of long-standing passions aligning with her professional expertise. Her work with All Raise, a nonprofit focused on increasing representation and funding for women in venture capital and tech, had already demonstrated her commitment to creating gender equity in spaces where women have historically lacked voice or investment. “I think many of the people in my life always thought of it [gender equity work] as my nonprofit passion,” Nortman reflects. “And I had sort of divided up my life between my for-profit passions and my nonprofit. And in the last five or 10 years, those two things came together in a way I couldn’t imagine.”

This convergence of purpose and profession didn’t happen overnight. Nortman advises, “Create room for things not to need to be your job or be a big thing and just see if they stick around.” She emphasizes the importance of allowing space for interests to evolve naturally. “Well then is it waking you up in the middle of the night? And that’s what began happening with women’s soccer for me.”

Nortman’s journey from venture capital to sports entrepreneurship demonstrates how expertise from one industry can drive innovation in another. Her ability to apply venture capital principles to women’s sports has not only created new investment opportunities but also challenged long-standing norms in sports ownership and fan engagement. As women’s sports continue to gain momentum, Nortman’s approach may well serve as a blueprint for future growth and development in this rapidly evolving sector.

Watch the full interview here.