ImpactAlpha, July 10 — New York-based Insight Partners launched 20/20 Vision Capital after the summer of unrest following the murder of George Floyd. The firm’s partners committed the entire $15 million for the inaugural fund, which has backed 14 diverse-led and early-stage funds, including Collide Capital and Precursor Ventures. The second 20/20 Vision Capital fund has raised $118 million.
With commitments from several large public pension funds, the second 20/20 Vision Capital fund has invested in nine new fund managers and reupped in the earlier portfolio of managers. More than half of 20/20 Vision Capital’s 23 portfolio funds are led by women, Black and/or Latino first-time managers.
The goal is “for the fund managers to directly access institutional capital on their own,” said Insight Partners’ Richard Wells.
“We hope that the emerging funds that 20/20 Vision Capital invests in grow to become a fit,” said Michael Trotsky of Massachusetts’s Pension Reserves Investment Management Board, a limited partner in the fund.
Other LPs include Pennsylvania’s Public School Employees’ Retirement System, New York State’s Common Retirement Fund, Alberta’s Investment Management Corp., and Illinois’ Teachers’ Retirement System.
Racial preferences in public-sector investments and asset allocations could face legal challenges following the recent Supreme court ruling on affirmative action.
Insight Partners has a 27-year track record of investing in software and technology businesses. The firm “has recognized that the problem wasn’t a shortage of minority founders, but rather a shortage of funds investing in them,” said Insight Partners’ Dionne Chingkoe. The 20/20 Vision Capital fund has addressed the challenge “by investing with diverse GPs who in turn have the opportunity to identify and invest in diverse founders.”