ImpactAlpha, March 15 – Listings of special purpose acquisition companies, or SPACs, hit a record in February, raising more than $27 billion. Venture capital firm General Catalyst is aiming to boost diversity with a $400 million raise for investments in Black-led software companies.
“Our team and board of directors are united around a common goal: to invest in the next generation of Black entrepreneurship and leadership,” the firm said in an SEC filing.
A spate of SPACs have targeted sustainability solutions like electric-vehicle charging networks and battery tech. Far fewer have focused on social factors in environmental, social and governance, or ESG, investing.
General Catalyst will use the SPAC’s profits to launch Catalyst Partners Foundation to “champion initiatives supporting the economic empowerment and inclusion of underrepresented groups.”
General Catalyst previously launched two healthcare-focused SPACs.