Melanie Strong helped shake up Nike's culture. Now the longtime executive is looking to invest in startups that care as much about culture as returns.

"We're investing in companies that create access to a healthier life for the broadest population possible," Strong said.

The San Francisco-based firm is ramping up as even bigger institutional investors pay more attention to the sports marketplace, such as SoftBank, which this month announced a $400 million investment in the California activewear company Vuori Inc. 

Other players include Forerunner Ventures, KB Partners and Sapphire Sport. Nike, Adidas and VF Corp. are among the companies with in-house investment arms.

Strong said Next Ventures is interested in investing in earlier-stage companies, typically those in need of a seed round or a Series A round. 

The firm launched with a $50 million fund raised from 70 investors, or limited partners. It's made 12 investments to date, including Oura, a company which makes a $299 ring that collects data on sleep patterns. 

Like other investments, the Oura investment started with a belief in the founders.

"We look for a very strong founder story, ideally one that's very mission driven," Strong said. "When there's a personal reason why this person has created the company, they're more likely to weather the inevitable ups and downs."

Strong said the Oura investment also is a bet that a simple hand-worn ring is the best way to track sleep, as well as her belief in the company's scientific research.   

Strong said she sees opportunities for investments in companies that make all sorts of similarly accessible wellness technology, including around sleep, mental health, and coaching. 

Next Ventures is an investor in Hammerhead, which describes itself as a "next-generation cycling computer." It also invested in Kinetyx, which is developing smart insoles for athletic shoes. 

"There's an opportunity for innovation to solve this basic problem of how to live a healthier life," Strong said.

Strong doesn't have a traditional venture-capital background: no MBA, no sleepless nights crunching numbers as a Wall Street intern. 

She joined Next Ventures after a 17-year career at Nike, during which she rose to become vice president of global skateboarding and vice president of global marketing for women. 

Strong's credited as one of the female executives who confronted management with the company's culture and pay-equity issues, a moment that continues to spur change within the company and coincided with Nike's then-President Trevor Edwards leaving the company. Strong said she learned her most important professional lessons at Nike, including how an inspiring mission can motivate a team and the need to "create space for different styles of leadership." 

"I wanted to be an investor in a new generation of founders and companies who would place as much emphasis on creating positive culture and community as they do on generating positive growth and returns," she said. 

Founders who have worked with Strong said her lack of pedigree is an asset, as is her perspective as a half-Asian female executive.

Strong's mother was born in Japan. She lived there as a child.

"She has a completely fresh point of view," said Lynn Le, founder and CEO of Society Nine, which bills itself as a modern women's boxing lifestyle brand. 

Le has known Strong since 2018. Strong has since become a personal investor in Society Nine.

"As an Asian female executive in the sportswear space — it's such a corny saying, but you can't be what you can't see," Le said. "She's emblematic of the type of leader I want to be." 

Next Ventures' first fund is a little over 50% deployed. Strong said she will start planning a second fund soon.

"How big will it be? Who will we bring in as strategic LPs? We'll have a good sense by the end of the year."