|Fund of the Week |
Location: Atlanta, GA
Size: On track to close $10M by August
What it is: Collab Capital aims to decrease the racial wealth gap by helping Black-founded businesses overcome funding and network challenges. Collab seeks to invest in entrepreneurs that are building sustainable, profitable companies, hiring in their communities, and reinvesting in founders that come after them.
Minimum investment size: $100K, min $20 initial deposit with remainder paid over time
Investment style/track record: Returning capital to investors via profit sharing provides an alternative stream to traditional venture capital funds. Most venture capital funds deliver returns to their investors between years seven and 10, but Collab’s profit-sharing format allows it to provide returns to limited partners as early as year three, according to the firm. Collab’s first investment was inHairbrella, an Atlanta-based company that makes funky satin-lined rain hats with an attached visor.
Leadership: Jewel Burke Solomon, head of Google for Startups; Barry Givens, managing director, Techstars Social Impact Accelerator; Justin Dawkins, co-founder of Goodie Nation
Quote: “Although it has been more than 50 years since the Civil Rights movement, racism and injustice are still pervasive across all facets of American life,” Berks Solomon told Times of Entrepreneurship. “We see disparities in access to healthcare, education and economics.”
This story and others on New Builders Dispatch are made possible by a sponsorship from the Ewing Marion Kauffman Foundation. The Ewing Marion Kauffman Foundation is a private, nonpartisan foundation that provides access to opportunities that help people achieve financial stability, upward mobility, and economic prosperity – regardless of race, gender, or geography. The Kansas City, Mo.-based foundation uses its grantmaking, research, programs, and initiatives to support the start and growth of new businesses, a more prepared workforce, and stronger communities. For more information, visit www.kauffman.org and connect with www.twitter.com/kauffmanfdn and www.facebook.com/kauffmanfdn.