When Lightship Capital launched its inaugural $50 million fund this summer, the news created quite the stir.
The raise – money the Cincinnati-based venture capital firm said would specifically target minority-led startups – has been called “groundbreaking" and “historic.” But the pace at which Lightship has invested those dollars – more than half has been pledged thus far – has been nothing but head turning.
Led by General Partners Candice and Brian Brackeen, the firm has funded five companies to date – startups spanning from New York to Colorado. All the founders Lightship Capital serves are people of color, women, members of the LGBTQ+ community and people with disabilities, whose companies operate in the consumer packaged goods, e-commerce, sustainability, artificial intelligence and health care space.
Candice Brackeen told me Lightship has closed $26 million to date. The firm will make initial investments in 35 companies in all, with dollars reserved for additional follow-on.
“First-time funds sometimes have a build-up of deal(s),” Brackeen said about Lightship’s quick pace. “We have lots of companies that’ll see investment over the next 18 months.”
Here’s a breakdown of the startups Lightship has funded so far:
- FreshFry, a Louisville, Ky., food technology company. Lightship Capital partnered with the Open Prairie Rural Opportunities Fund, an $81 million private equity fund based out of Effingham, Ill., to complete that $3.25 million equity round. FreshFry’s all-natural, plant-based, sustainable product cleans and extends the life of frying oil used by restaurants and other facilities.
- Undock, a New York startup. Undock’s AI-enabled productivity platform and cooperative meeting network connects people across different organizations, calendar applications and geographies. “The company has it all — it solves a real problem, with beauty and elegance,” Brian Brackeen said in a release. The $1.6 million financing round was led by Lightship Capital with participation from other notable investors including Bessemer Venture Partners, Lerer Hippeau, Alumni Ventures Group and Arlan Hamilton. Lightship Capital will also assist in site selection as Undock to relocates to the Midwest. Cincinnati, Candice Brackeen said, is a contender. “We have big plans for Undock in the Midwest,” she added.
- Allergy Amulet, which has developed the world’s smallest and fastest consumer food allergen sensor. It received a $3.3 million seed round led by Green Bay’s TitletownTech with participation from Lightship Capital and several other investors. The Allergy Amulet sensor fits on a keychain, necklace, wristband or in a pocket and doubles as a medical alert system. The capital will be used by the company to manufacture beta units. Allergy Amulet is slated for pre-sales in fall 2020 with a launch in fall of 2021.
- Proov, an at-home hormone testing kit company originally co-founded in Boulder, Colo., by two women who struggled to conceive. Proov is the first and only FDA-cleared test to confirm ovulation at home. The amount of the investment was not disclosed. But funding from Lightship Capital and the Texas HALO Fund, who joined the round along with additional angel investors, will help Proov meet a growing need for testing kits as well as ongoing research and development.
- Haute Hijab, an e-commerce brand that’s gaining ground for its high-fashion head coverings – and a platform that celebrates and supports the hijab-wearing community. By the year 2030, Haute Hijab estimates that one-quarter of the world’s women will be Muslim. Of these women, many will require the volume and variety to support up to three different hijab looks per day, founder Melanie Elturk has said. Lightship also did not disclose the amount of funding received by Haute Hijab. “The opportunity in this space is significant," Alexis Alston, senior associate at Lightship Capital, said. "We consider Melanie an absolute visionary. We're honored to be a part of this journey.”
