The team at Black Founder Matter Fund have secured the first close of its first fund.
The Portland-based fund has secured $3 million of its targeted $10 million fund. It has already started investing and has backed 10 companies so far.
Last fall, the fund said it had deployed $875,000. The founders it has backed are 50% men and 50% women.
“The entire emphasis of our fund is about creating accessible venture capital for Black entrepreneurs and diverse innovative problem solvers,” said fund founder Marceau Michel in a news release. “In the same way, we also want to be a resource to other emerging funds, to provide them access to high-profile deal flow. Accessible venture capital represents the new wave of venture practice.”
Along with Michel, the fund is run by managing director Himalaya Rao-Potlapally. The two are part of a new generation of investors in Portland and also a growing number of investors focused on backing founders from marginalized communities. Here’s a deeper dive into the fund from October.
According to Crunchbase research $147 billion was invested in the first six months of 2021 and just 1.2% went to Black founders. And Black women received only 0.34% of that.
BFM’s portfolio includes: Portland-based A Kids Company About; New York-based Hued, in which the fund invested alongside Serena Williams; and New York-based Glow Up Games, in which the fund invested alongside Issa Rae.
“We are taking an intentionally new approach to generate venture capital success and financial returns. By shifting the focus off archaic pattern-matching, we are able to prioritize innovation and lean into the differences that make our companies successful,” said Rao-Potlapally in a written statement. “Black Founders Matter showcases new investment strategies that can be both financially lucrative and holistically inclusive of much needed diverse perspectives.”
