Recent reports have shown a dramatic drop in venture capital investment in Black-owned companies, with just about 0.43% of the nearly $43 billion deployed in Q being raised by Black founders.
Collide Capital is aiming to significantly close this gap.
One of the largest Black-owned first time funds, Collide recently announced the close of its debut, which tops out at $66M. Per a news release, Collide has backed more than 40 companies, of which 80% are Black, Latinx, and/or female-led.
The raise is particularly notable since Collide is simultaneously backed by Amazon, Alphabet, and Twitter, one of the first Black-led funds to achieve that feat. Additional LPs include Bank of America, Citi, Northwestern Mutual, Bain Capital, Insight Partners, and Lightspeed Venture Partners, among others.
“At Alphabet, we invest in companies and people who are passionate about using technology to change how we live for a better future,” said Jeremiah Gordon, General Counsel and Chief Compliance Officer at CapitalG, Alphabet’s growth equity fund said in a news release. “Aaron and Brian are building a powerful ecosystem that connects us to the founders who are working to solve the next generation of global challenges, and we are excited to bring the resources of Alphabet to their diverse portfolio of founders. This Fund I is just the beginning for Collide Capital, and we’re excited to see what the future holds for them.”
It has been reported that tech giants Amazon, Alphabet and Twitter put in more than 20% of the total fund.
“Aaron and Brian bring investment acumen and operator expertise to their portfolio, coupled with a demonstrable track record of funding diverse and women-led teams,” said Jon Chen, VP of Corporate Development & Strategy at Twitter. “As Twitter continues to prioritize its investments in the teams, companies, and funds that represent diverse and underrepresented groups, we’re proud to support Collide Capital’s Fund I and join them in the pursuit for a more diverse and inclusive tech industry.”
“Brian and Aaron are building an innovative venture capital fund that represents the future of the VC industry,” said Jagdeep Singh Bachher, Chief Investment Officer of the UC Regents. “Our investment in Collide Capital supports their vision, and we hope that students in the University of California system and beyond are inspired by this work. It’s truly remarkable.”
“We believe that storytelling and community building are necessary tools to reshape the world into a more just and equitable place,” said Aaron Samuels, Founder and Managing Partner of Collide Capital. “But after a decade as a poet and entrepreneur, I now believe that we also need one additional fundamental tool: capital. Collide Capital is a natural extension of the work that both Brian and I have been deeply engaged in, and allows us to place dollars behind the next generation of diverse founders.”
Source: Read Full Article
