The NAACP recently introduced NAACP Capital, a $200 million fund of funds aimed at supporting fund managers who are dedicated to addressing issues that impact people of color. This initiative was developed in collaboration with Kapor Capital, Kapor Center, and nine other venture fund managers. According to a report by Crunchbase last year, Black founders received less than 1% of total venture capital funding, with only 0.3% raised in the first half of this year.
A fund of funds strategy involves an investor putting money into multiple venture funds instead of making individual investments in startups. This approach allows investors to have a more significant impact with their investments. Kapor Capital has always been committed to racial justice investing, and this fund of funds is aligned with their mission. Similar initiatives have been taken by other prominent figures, such as Melinda Gates’ Pivotal Ventures, which invests in women-led funds and startups directly.
The creation of NAACP Capital signifies a significant step towards addressing the funding gap faced by Black entrepreneurs and other people of color in the tech industry. By providing financial support to fund managers who are actively working to support underrepresented communities, this fund of funds has the potential to drive positive change and promote diversity in the startup ecosystem.
In addition to addressing the funding disparity, NAACP Capital aims to create more opportunities for minority entrepreneurs to access the resources and support they need to succeed. By partnering with experienced fund managers who have a track record of investing in diverse founders, this fund of funds can help bridge the gap and level the playing field for underrepresented groups in the tech sector.
Overall, NAACP Capital’s $200 million fund of funds is a promising initiative that has the potential to make a significant impact on the tech industry’s diversity and inclusion efforts. By supporting fund managers who are committed to investing in minority-led startups, this initiative can help drive innovation, create economic opportunities, and empower underrepresented communities in the entrepreneurial space.
