ImpactAlpha, December 9 – Lo Toney was still a partner at GV (formerly Google Ventures) when he started Plexo. The GV spinout invests in early-stage ventures and funds led by women and people from minority backgrounds.
Plexo’s thesis is that in the absence of data for underserved markets, investing in diverse founders and investment managers engaged in those markets exposes under-tapped opportunities for alpha.
The firm is backed by the Ford Foundation, Kapor Capital, historically black college Hampton University as well as large corporate investors like Alphabet, Intel and Cisco.
Returns on inclusion
Plexo is the latest fund to succeed in raising capital around the small (dollar-wise) but growing diversity lens. Just last week, Harlem Capital closed $40 million for its first fund (see, “Harlem Capital raises $40 million to ‘change the face of entrepreneurship’”).