Zeal Capital Companions introduced on Wednesday the shut of its second fund, elevating $82 million. Restricted companions within the fund embrace Citi Affect Fund, M&T Financial institution, Wells Fargo, and Spelman Faculty. It hopes to spend money on at the very least 25 early-stage firms, writing test sizes between $1 million and $2.3 million, with 50% of the fund reserved for follow-on investments.
Chatting with TechCrunch, Nasir Qadree, founder and managing partner of Zeal, mentioned Fund II will give attention to monetary know-how, healthcare, and future of labor, as its different fund did. It has already invested in at the very least 5 firms, together with the maternal well being platform Seven Starling and the fintech Debbie.
Qadree described the funding setting for Fund II as “undoubtedly difficult” due to macroeconomic uncertainty, LP rebalancing, and tighter allocation home windows.
“However these headwinds additionally sharpened our technique and reaffirmed the energy of our strategy,” Qadree mentioned. “I’m proud to share that over 80% of our restricted companions from Zeal Fund I continued with us into Fund II, a sign of deep conviction in our skill to constantly again category-defining firms.”
Black-led and based funds comparable to this have been making some sizeable closes recently.
Slauson & Co. introduced a $100 million Fund II final September, adopted by Illumen Capital, based by Daryn Dodson, asserting the increase of a $32.75 million Fund in November. This yr, Sydney Thomas’ Symphonic Capital introduced the increase of a $13.5 million inaugural fund, whereas Cherryrock Capital, based by Stacy Brown-Philpot, introduced the increase of its $172 million Fund I.
A few of these funds are normal of their mission, whereas others are extra express of their goal of underrepresented communities, exhibiting that urge for food nonetheless exists for such funds, regardless of the strain from the present US presidential administration, and amongst those who help it, towards something that may very well be thought-about “DEI”.
Total, Zeal, a extra generalist fund based in 2019, has invested in 40 firms. Fund I introduced its close at $62.1 million in 2021.