Atlanta Venture Firm Raises $75 Million to Invest in Underrepresented Founders
Atlanta, GA—Collab Capital, a venture firm founded in 2019, has successfully raised $75 million to bolster investments in historically underfunded entrepreneurs, specifically focusing on Black-led companies. The firm, co-founded by Jewel Burks Solomon, initially closed a $51 million fund in 2021, through which they invested in 38 diverse early-stage companies, including notable ventures like Hairbrella and Goodr, with average investments slightly below $1 million.
With the new fund, Collab plans to allocate between $1 million to $2 million to approximately 30 companies, setting aside additional resources for follow-on investments in top-performing portfolio companies. Burks Solomon highlighted the significance of this fund in light of a challenging fundraising atmosphere. "It took about 18 months to raise our first fund, but the climate for this second round has shifted dramatically, reflecting broader economic uncertainties," she noted.
Navigating the Challenging Landscape
The journey to secure this new fund was not without its obstacles. Many potential investors reconsidered their commitments due to growing challenges related to diversity, equity, and inclusion under previous political administrations. "It’s a hard fundraising time for everyone, but the shifting sentiments around diversity have certainly posed additional challenges for our process," Burks Solomon explained.
Economic factors such as rising interest rates and a notable decline in public tech company entries have also put pressure on fundraising efforts across the board. The number of tech companies going public fell sharply from a peak of 126 in 2021 to just nine in 2024, leaving many investors cautious.
A Commitment to Mission Despite Challenges
In the wake of the Supreme Court’s decision in 2023 to ban affirmative action, Collab has faced external pressure, including lawsuits that question corporate DEI initiatives. Burks Solomon emphasized the importance of adapting while remaining true to their mission: "To ensure we can continue our work, we’ve had to shift our language while staying committed to providing capital to places it traditionally hasn’t gone."
This commitment resonates with biblical principles about justice and integrity. Proverbs 31:8-9 states, “Speak up for those who cannot speak for themselves; ensure justice for those being crushed.” Collab’s efforts to uplift underrepresented founders mirror this call for advocacy and support, reinforcing the significance of uplifting others within the community.
Reflecting on Broader Implications
As gaps in wealth and opportunity widen, Collab Capital’s mission highlights the pressing need for equity in entrepreneurship. "We are uncovering extraordinary entrepreneurs who are building the solutions our society needs," Burks Solomon added, echoing a commitment to serve others in accordance with the teachings of Jesus, who advocated for lifting up the marginalized and providing opportunities for all.
Encouragement for Change
As we reflect on this journey, consider how principles of equity and community service can guide us in our own lives. In fostering a spirit of generosity and support for others, we not only uplift those around us but build a stronger, more inclusive society. Let us strive to engage positively within our communities, ensuring that everyone has a chance to succeed, resonating with the message of Matthew 25:40: "Whatever you did for one of the least of these brothers and sisters of mine, you did for me."
In these challenging times, let us remain open-hearted and committed to justice, paving the way for a brighter future for all.
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