- Harlem Capital — a diversity-focused venture capital firm — announced recently that it closed Harlem Capital Partners Venture Fund II, LP (Fund II) at $134 million. These are the details.
Harlem Capital — a diversity-focused venture capital firm — announced recently that it closed Harlem Capital Partners Venture Fund II, LP (Fund II) at $134 million. This fund was oversubscribed from its target of $100 million and above its initial cap of $125 million.
Founded in 2015, Harlem Capital is on a mission to fundamentally change the face of entrepreneurship.
Harlem Capital is aiming to invest in 1,000 diverse founders over the next 20 years. Originally launched as an angel syndicate, Harlem Capital closed its $40 million inaugural fund in November 2019 and now manages $174 million in assets under management.
Harlem Capital Partners Venture Fund I has invested in 23 companies, including e-commerce platforms like Pangaea, CashDrop, Malomo, and Repeat, and wellness brands Wellory, Expectful, Wagmo, and Shine. And Fund I’s portfolio is comprised of 61% Black or Latino-led companies and 43% women-only-led companies. The fund is still actively investing with a target of 5 more initial investments.
Harlem Capital’s Fund II seeks to invest in 45 companies while maintaining Harlem Capital’s commitment to minority and women founders. But shifting the focus to early seed-stage investments in companies that are post-product. Fund II is going to remain industry-agnostic, but there will be a deeper focus on enterprise and consumer technology. The firm is targeting 10%+ ownership and will lead or participate in funding rounds.
With the second fund, Harlem Capital will also introduce “Culture Carry” — allowing Fund II founders to split 1% of the fund’s carry. And Fund I founders will also now have culture carry. This decision ensures all founders will benefit directly from each other’s success, aligned with Harlem Capital’s mission to promote a stronger ecosystem of diverse founders.
KEY QUOTES:
“We are focused on building an institution and platform to support diverse founders for many generations. Fund II is one step closer to our mission, but we know the work and journey continues. We are excited to provide more capital and resources to even more diverse founders tackling unique problems.”
— Henri Pierre-Jacques, Managing Partner of Harlem Capital
“We are grateful for the support from our portfolio companies, LPs, and broader network who made this fundraise possible. We have always believed that people of color and women can build incredible companies; they just need fair access to capital. It is wonderful to see increased reception to our strategy — a sign that the world is moving in the right direction.”
— Jarrid Tingle, Managing Partner of Harlem Capital
