07 May Investing in black women founders because “it’s about damn time”
As the founder of Backstage Capital, a VC fund that backs women, people of color, and LGBT founders, Arlan Hamilton has supported more than 80 companies led by underrepresented founders. This weekend, Hamilton announced that Backstage’s latest fund will invest $36 million in black female founders.
The rumors are true. Today at #USOW2018 I announced that my venture capital firm @Backstage_Cap has launched a $36m fund that will invest in Black women founders $1mill at a time. Thank you to the Backstage Crew, headliners, LPs, mentors & network for making this moment possible. pic.twitter.com/yT1SMQOFAR
— Arlan ???????? (@ArlanWasHere) May 5, 2018
Though Hamilton is still raising money for the fund, she plans to invest in two to three companies by the close of 2018. Each company will receive $1 million in funding, but Hamilton tells me half of the fund will be set aside to help support its founders in subsequent funding rounds. As such, the fund will back a total of 15-20 companies.
Black women get little funding from VC firms, despite reportedly being the fastest growing group of entrepreneurs—which is why Hamilton has aptly dubbed this the “it’s about damn time” fund.
They’re calling it a “diversity fund.” I’m calling it an IT’S ABOUT DAMN TIME fund.
— Arlan ???????? (@ArlanWasHere) May 6, 2018
Source: Fast Company