The companies are creating the New Voices Fund as part of Unilever’s agreement to acquire New York-based Sundial Brands, which makes hair and skincare products for people of color.
The fund, which aims to channel more capital into businesses founded and run by women of color, starts with $50 million in seed capital and plans to raise another $50 million. Sundial, founded in 1991 by Liberian immigrants, projects 2017 revenues of $240 million.
Businesses owned and run by women of color get only 0.2% of all venture capital funding, but some firms are beginning to find opportunities in the underfunded group.
Backstage Capital is looking to raise a second fund to support women- and minority-owned startups while Babel Ventures, a women-led fund, raised $30 million to support Latino entrepreneurs.