Dealflow | April 1, 2021

Harlem Capital closes $134 million second fund to back diverse entrepreneurs

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, April 1 — New York-based venture firm Harlem Capital aims to invest in 1,000 companies led by women and minority founders over the next two decades. “We are focused on building an institution and platform to support diverse founders for many generations,” said the firm.

Its second fund will invest in 45 companies. Harlem’s $40 million first fund backed more than two dozen companies – 61% of the companies are Black or Latino-led and 43% are women-only led companies (see, “Harlem Capital raises $40 million to ‘change the face of entrepreneurship’”). 

Anchor capital

It took Harlem Capital just five months to raise fund two, according to Forbes. Anchor limited partners in the fund include Apple, PayPal and return investor TPG Capital. The fund attracted more than a dozen institutions and six family offices. More than 40% of the fund’s individual LPs are women or people of color.

Culture carry

Founders in the fund’s portfolio will share 1% of the fund’s carry (culture carry will also apply to fund one). “The decision ensures all founders will benefit directly from each other’s success,” said the firm.