The Reconstruction | May 27, 2021

Collab Capital closes $50 million Black innovation fund

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, May 27 – Atlanta-based Collab Capital launched its fund less than a year ago to invest in early-stage, Black-led businesses that are building generational wealth in Black communities (see, “Collab Capital launches fund for Black founders”).

Collab’s strategy is to support portfolio companies with both financial and social capital and networks that will accelerate investee’s traction and scalability. For instance, Hip Hop artist Lecrae is serving as a Collab venture partner.

The firm’s first fund drew corporate commitments from Apple, Goldman Sachs, Google, Paypal and Mailchimp. The Kauffman Foundation and Lecrae seeded the fund. Andrew W. Mellon Foundation and Kapor Capital also invested, as well as Libra Foundation and the Mary Reynolds Babcock Foundation, with support from Candide Group.

Collab is looking to make 50 investments from the fund. It has four companies in its portfolio: Atlanta-based rain hat maker Hairbrella, ride-hailing vehicle rental company Jax Rideshare, and music licensing company Music Tech Works. Washington, D.C.-based Please Assist Me provides resident services for real estate operators.