TLDR:
- Harlem Capital is raising a $150 million fund to empower diverse founders.
- The firm has successfully raised $134 million in its previous fund, focusing on supporting underrepresented entrepreneurs in various sectors.
Harlem Capital, a venture capital firm known for its commitment to supporting diverse founders, is in the process of raising a $150 million fund, as indicated by recent filings with the SEC. If successful, this will mark the firm’s third and largest fund to date. Founded in 2015, Harlem Capital has been a trailblazer in backing entrepreneurs from underrepresented backgrounds. The firm’s mission is to transform the face of entrepreneurship by investing in diverse teams and providing them with the necessary resources to succeed. Their new $150 million fund aims to continue this mission, building on the significant impact of their previous funds.
In 2021, Harlem Capital successfully raised an oversubscribed $134 million fund, far surpassing its initial target and significantly more than the $40 million raised for its inaugural fund in 2019. This progression underscores the firm’s growing influence and the increasing recognition of the importance of diversity in the startup ecosystem. The firm’s second fund focused on early-stage post-product companies across various sectors, with a particular emphasis on consumer and enterprise technology. According to Pitchbook, Harlem Capital currently manages $174 million in assets and has made over 80 investments since its inception.
Despite the impressive track record, Harlem Capital faces a different fundraising environment compared to its second fund. The firm remains steadfast in their mission to support diverse founders, even as there has been a noticeable backlash against diversity and inclusion efforts across various industries in America. Raising $150 million in such a context will not only be a testament to the firm’s resilience but also an indicator of the industry’s ongoing commitment to diversity and inclusion. Harlem Capital’s dedication to diversity extends beyond its portfolio companies, with a focus on raising capital from diverse limited partners (LPs) to ensure that their investor base reflects their values.
Harlem Capital’s effort to raise a $150 million fund is more than just a financial milestone. It is a statement of purpose, a continuation of their unwavering commitment to diversity, and a challenge to the venture capital industry to uphold its pledges to support marginalized communities. The success of this fund will not only bolster the firm’s ability to support diverse founders but also reinforce the importance of inclusive investing in fostering a vibrant and equitable startup ecosystem.
