Atlanta early-stage investment firm Collab Capital raised its first, $50 million fund for startups led by Black founders.
Google for Startups Head Jewel Burks Solomon, Atlanta Techstars Social Impact Accelerator Director Barry Givens and Goodie Nation Co-Founder Justin Dawkins founded the firm to give the next generations of Black startups more access to capital than they had while growing their companies.
"We all had similar frustrations related to raising capital,” said Burks Solomon, who founded Partpic, which Amazon bought in 2016. “I was experiencing a lot of bias in the process of raising money and growing my company.”
The three leaders started Collab Capital about a year and a half ago and began raising the fund as the pandemic shifted all interactions to virtual and social justice protests permeated U.S. cities after the killing of Georgie Floyd.
Burks Solomon said that tragedy and national unrest showcased the need for the Collab Capital fund.
“There was such a shift from major corporations and fund allocators,” Burks Solomon said. “They could see the needs that are still here in our community, particularly around supporting Black-led companies. We were well situated to answer that call.”
The fund includes investments from Apple, Goldman Sachs, Google, PayPal and Mailchimp.
It supports Black-led startups or tech-enabled companies, Burks Solomon said. The partners are focused on cities like Atlanta where there’s a high concentration of Black entrepreneurs and low concentration of capital.
Collab Capital’s close is the latest in a string of new, early-stage investment funds, many of which aim to increase funding for diverse founders. Zane Venture Fund is raising a $25 million fund focused on underrepresented founders. Valor Ventures is on its second, $21 million fund with an inclusive investing model.
Atlanta is considered a hub for Black entrepreneurs, some of whom come to the city because of this reputation. Collab Capital is one of the growing number of resources for Black founders. Goodie Nation provides mentorship and connections for founders of color, and The Russell Innovation Center for Entrepreneurship, which opened right before the pandemic, gives business education and resources.
Burks Solomon said Collab Capital has closed five investments, including Atlanta startups Hairbrella, named by the Metro Atlanta Chamber for its high-growth potential, Music Tech Works and Jack’s Rideshare Rentals.
The check sizes range from $500,000-$750,000 for first investments and up to $2 million for follow-on investments. Burks Solomon said 30% of the fund is reserved for follow-ons.
After working remotely or meeting up in co-working spaces through most of the pandemic, the partners now have an office in the Castleberry Hill neighborhood.
