Collab Capital Secures $75M Fund II to Support Early-Stage Tech Startups Tackling Systemic Challenges

Collab Capital, led by Jewel Burks Solomon, has recently announced the successful closure of its second venture capital (VC) fund, which amounts to $75 million. This milestone follows the firm's first fund, established in 2020 with $50 million, and marks a significant step forward in their mission to support early-stage companies addressing large, systemic issues. The new fund, Fund II, boasts impressive backing from heavyweight investors such as Apple, Goldman Sachs Asset Management, and the Leon Levine Foundation. These limited partners (LPs) join Collab Capital in its efforts to invest in seed and Series A startups focused on sectors like the future of work, healthcare, and infrastructure. In the initial phase of Fund I, Collab Capital successfully invested in 38 companies, including Goodr, a waste management platform, and Culina Health. With the fresh capital, Fund II aims to make investments ranging from $1 to $2 million in at least 30 companies over the next five years. Additionally, 40% of the fund is earmarked for follow-on investments, ensuring continuous support for promising ventures. According to Solomon, the process of raising this second fund was arduous and took almost two years. She and her team faced challenges stemming from a difficult economic environment and fluctuating LP priorities. Despite these hurdles, they remained steadfast in their commitment and cultivated robust relationships with investors who recognized the importance and potential of their mission. Solomon emphasized that Collab Capital's approach involves making more substantial investments in companies where they have deep confidence. "What’s next is deeper conviction, bigger bets, and continued proof that shared prosperity is scalable and can generate competitive returns," she told TechCrunch. The announcement of Collab Capital’s Fund II is part of a broader trend of sizable fund closures led by Black founders and managers. Last month, Zeal Capital Partners secured an $82 million Fund II, demonstrating ongoing momentum in this area. Earlier this year, Symphonic Capital, founded by Sydney Thomas, raised a $13.5 million inaugural fund. In another notable development, Cherryrock Capital, established by Stacy Brown-Philpot, announced a $172 million Fund I late last year. Furthermore, Slauson & Co. secured a $100 million Fund II in the latter part of last year. These fundraising successes highlight the growing influence and recognition of Black-led investment firms in the venture capital landscape. They are not only securing significant capital but also focusing on impactful areas that address social and economic challenges, reinforcing the idea that diverse perspectives can lead to innovative solutions and competitive financial returns. As Solomon looks ahead, she is optimistic about the opportunities and impact that Fund II will bring. "We are excited to continue partnering with visionary founders and to prove that investing in shared prosperity is both possible and profitable," she concluded. The closing of Collab Capital's Fund II signals a strong belief in the potential of underrepresented founders to drive meaningful change and economic growth, further contributing to the diversification and expansion of the tech investment ecosystem.