|Fund of the Week |
Location: Atlanta, GA
Size: On track to close $10M by August
What it is: Collab Capital aims to decrease the racial wealth gap by helping Black-founded businesses overcome funding and network challenges. Collab seeks to invest in entrepreneurs that are building sustainable, profitable companies, hiring in their communities, and reinvesting in founders that come after them.
Minimum investment size: $100K, min $20 initial deposit with remainder paid over time
Investment style/track record: Returning capital to investors via profit sharing provides an alternative stream to traditional venture capital funds. Most venture capital funds deliver returns to their investors between years seven and 10, but Collab’s profit-sharing format allows it to provide returns to limited partners as early as year three, according to the firm. Collab’s first investment was inHairbrella, an Atlanta-based company that makes funky satin-lined rain hats with an attached visor.
Leadership: Jewel Burke Solomon, head of Google for Startups; Barry Givens, managing director, Techstars Social Impact Accelerator; Justin Dawkins, co-founder of Goodie Nation
Quote: “Although it has been more than 50 years since the Civil Rights movement, racism and injustice are still pervasive across all facets of American life,” Berks Solomon told Times of Entrepreneurship. “We see disparities in access to healthcare, education and economics.”
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