TLDR:
Key Points:
- Colorful Capital, focusing on LGBTQIA+-identifying founders, is stopping attempts to raise a fund.
- The firm faced challenges in raising funds, with only four investments made since its launch.
Colorful Capital, a firm launched in 2022 to invest in LGBTQIA+-identifying founders, will cease its efforts to raise a fund, as reported by TechCrunch. The co-founders, William Burckart and Megan Kashner, have chosen not to comment on the situation. The firm has been struggling to raise funds since its inception, with only four investments made, including in companies like Springrose and Mate Fertility. This decision comes at a time when there is a wider investor pullback from organizations focusing on diversity and inclusion.
A former employee highlighted the challenges faced by emerging fund managers, stating that unless one has a big reputation or is raising in AI, obtaining funds has become increasingly difficult. Colorful Capital’s white papers addressed the lack of venture capital for LGBTQIA+ founders and aimed to increase venture equity. While the firm may no longer be raising funds, the founders expressed their commitment to continue supporting the LGBTQIA+ community in other capacities.
