The Atlanta Hawks have entered into the venture capital market with a fund aimed at women and minority startup founders.
Hawks Ventures, a new business unit of the Hawks organization, is a $50 million fund that will be used to make strategic capital investments in companies over the next five years. It is led by David Garcia, previous senior vice president of experience and innovation for the Hawks.
The fund will look into companies with products that the Atlanta Hawks or State Farm Arena could use, specifically in the customer experience industry. Some of which could reach a business agreement with the organization.
“We're focused on startups that are trying to transform the way a customer experiences a product or service. Companies that make it faster and more convenient, more personal and helpful, and more fun and unique,” Garcia said.
The venture fund will focus on seed and Series A stage companies that are based anywhere in the U.S. Half of the $50 million fund is reserved for first-time investments in a startup. The other half is to invest again in companies that have shown growth since their initial raise from the fund, Garcia said. The fund will also assist its portfolio companies in finding talent, making connections and workshops.
The Hawks sees at the fund as a continuation of community efforts from owner Tony Ressler, such as when he committed $40 million for minority entrepreneurs in 2020. A majority of funds from Hawks Ventures will go toward minority and woman founders.
Announcement of the fund comes as venture capital has declined for startups as investors change their priorities from growth to profit. On top of that, women and minority founders often get the short end of the stick. During 2022, a record year for venture capital, Black founders in Atlanta received around 12% of local venture funding.
“This is good business. This isn't philanthropy. There are brilliant ideas in underserved communities,” said Steve Koonin, CEO of the Atlanta Hawks and State Farm Arena. “We're in the food service business, we're in the media business, we're in the ticketing business and we see so many new technologies and opportunities and we want to focus our fund on underserved ventures of minorities and women.”
