TL;DR Summary: Collab Capital has raised $75 million for its Fund II, increasing its total assets to $125 million. This Atlanta-based, Black-led VC firm aims to back innovative startups in the work, care, and community sectors. Fund II will focus on Seed and Series A investments, supporting companies that deliver both financial returns and systemic impact. Notable investments include mobile EV charging solutions and affordable telehealth services, underscoring the firm’s commitment to fostering shared prosperity.
Collab Capital’s Fund II: A New Era for Founders
In a significant move towards empowering underrepresented entrepreneurs, Collab Capital has officially launched its $75 million Fund II. This strategic financial boost not only enhances the firm’s overall asset management to $125 million but also strengthens its reputation as one of the leading Black-led venture capital firms in the United States. With a sharp focus on the evolving landscapes of work, care, and community, Collab Capital is poised to champion the next wave of innovative, high-growth companies.
A Mission Rooted in Prosperity
At the heart of Collab Capital’s operations lies a profound commitment to “the building blocks of shared prosperity.” The firm’s philosophy revolves around selecting Seed and Series A investments in tech-forward businesses that cater to essential societal needs. This approach not only promises financial returns but aspires to create a lasting systemic impact. The vision is clear: build a more inclusive economy that thrives through collaboration and innovation.
Key Partnerships Bolster Fund II
Fund II has attracted a roster of both new and returning limited partners (LPs), demonstrating its wide-ranging appeal and investment potential. Notable backers include giants like Apple, the Leon Levine Foundation, California IBank, and Goldman Sachs Asset Management’s External Investing Group. These partnerships not only affirm Collab’s credibility but also amplify its resources, allowing it to support a diverse array of startups.
A Track Record of Success
Building on the foundation laid by its inaugural fund in 2020, which successfully backed 38 companies, Collab Capital is already making strides with Fund II. The first fund saw companies such as Hairbrella and Goodr excel, achieving impressive million-dollar revenue months and securing national contracts. Such successes reinforce the firm’s belief in nurturing innovative ideas from diverse founders who are ready to disrupt industries.
Investments That Matter
Fund II has already committed capital to six promising companies, all of which share a commitment to solving real-world problems. Among these investments, SparkCharge stands out with its mobile, off-grid electric vehicle charging solutions. River Health is another key investment, providing accessible telehealth services to underserved workers. Additionally, A0 uses advanced AI technology to streamline mobile app development, epitomizing the technological innovations that Collab seeks to foster.
Beyond Financial Support: A Holistic Approach
Collab Capital’s contribution to its portfolio companies transcends mere financial backing. The firm emphasizes a “collaboration-as-a-service” model that offers invaluable strategic guidance, coaching, and enterprise connections. Its Executive-in-Residence program, led by AI expert Dr. Nashlie Sephus, and quarterly Strategic Town Halls, reflect a dedication to continuous learning and support for founders.
Moreover, understanding the mental and emotional toll that entrepreneurship can exert, Collab prioritizes founder well-being. Through initiatives like CWC Coaching and Therapy, they offer free therapy sessions, recognizing that sustainable companies are often led by resilient individuals.
Looking Ahead: Ambitions for Growth
With a target of investing in 30 companies over the next five years, Fund II is ambitious in its scope. Notably, Collab plans to reserve 40% of its capital for follow-on investments in top performers, ensuring that it can continue to nurture and grow the most promising ventures within its portfolio.
As Collab Capital strides forward, its commitment not only to investment but to fostering a thriving entrepreneurial ecosystem shines brighter than ever. With its innovative approach and unwavering support for Black founders, the firm is laying down the foundations for a more equitable economic landscape, one startup at a time.
