Valor Ventures, an Atlanta seed-stage investment firm, closed its second, $21 million fund focused on inclusive investing in the Southeast.
The close comes during an influx of new funds, a component of a healthy technology ecosystem that the city has historically lacked. The growth of local capital indicates the region's growth as a hub for innovation. Massive tech companies such as Google, Microsoft and Airbnb have announced expansions in Atlanta because of its technology ecosystem, university systems and diverse demographics.
Valor Ventures aims to make sure its portfolio matches the diversity of the region and focuses on inclusive investing.
About 80% of its total 17 investments are led by a woman or a person of color, which reflects the demographics of the Southeast, said Lisa Calhoun, a general partner at Valor Ventures.
“Valor is the first institutional VC firm led by an inclusive team to come in this wave of growth, and the first female-led institutional venture capital in Atlanta,” Calhoun said.
Valor Ventures has invested in seven companies with its second fund, including local startups LeaseQuery, Physician360, Funding U, Capway and Vital4. Check sizes range from $500,000 to $1 million, Calhoun said.
Investors in the second fund include the Georgia Tech Foundation, MeHarry Medical College and the Kellogg Foundation. Calhoun and general partners Robin Bienfait and Gary Peat lead the firm.
Calhoun said she was impressed with the investors’ dedication to inclusivity, despite the hardships of the pandemic, which is when the bulk of the fund was raised. The initial close of the fund was in October 2019.
"The Black Lives Matter movement, the Me Too movement before that, and the pandemic was a one-two-three punch for a lot of sophisticated investors,” Calhoun said. “They need to activate themselves to invest on the frontier of innovation — especially in underrepresented founders — in order to have a more resilient world."
One of Valor Ventures’ goals is to make inclusive investing “the new normal.”
Data shows that more diverse teams perform better financially, giving the firm a better return on investment. Calhoun said company leadership teams should reflect the same demographics as its customer base, which helps the company make more sales and understand the needs of its customers better.
Valor Ventures sources underrepresented founders partially through its Startup Runway pitch event, which helps connect women and founders of colors to investors and mentors.
Calhoun said the firm focuses on health technology and financial technology because those are two of the strongest industries in the Southeast.
Atlanta, nicknamed “Transaction Alley” for its robust payment infrastructure, has a longstanding reputation for fintech companies. It’s also nationally recognized as a hub for public health because of its research and hospital networks.
