Former Sacramento Mayor Kevin Johnson has raised $4.3 million for a venture capital fund that aims to invest in businesses to support communities of color.
A former NBA All-Star, Johnson served two terms as Sacramento mayor from 2008 to 2016, and has long had business and nonprofit interests in Sacramento’s Oak Park neighborhood, where he grew up.
Johnson's Sacramento-based Black Capital venture fund will make seed and early-stage investments, with a goal of making greater than 50% of its investments to Black founders, according to its website. The fund aims to raise $10 million, and it expects to write checks averaging $200,000.
The fund this week submitted disclosure documents with the Securities and Exchange Commission reporting that it has raised $4.3 million in pooled investment funds for the purposes of venture capital investing.
“Black Capital’s mission is to build wealth for the Black community by democratizing access to venture capital,” the firm's website states. “Currently, less than 2% of capital is invested in Black founders, who have historically been overlooked by traditional VCs.”
Representatives of Black Capital couldn't immediately be reached by the Business Journal to comment.
Johnson is listed as founder and managing partner. Julian Love is listed as a venture partner with Black Capital. Love was formerly chief financial officer and chief business officer with St. Hope, a series of nonprofits and other businesses in Oak Park founded by Johnson in 1989.
Marcus Hollon is listed as senior associate responsible for sourcing deals. Hollon is a former New York investment banker and an investor.
In early 2020, Johnson told the Sacramento Observer, a newspaper covering Sacramento’s Black community, that he was launching the fund. Apparently, with Covid-19 hitting just over a month later, the fund’s start was delayed.
