According to our research, a lot of the Black-led VC firms cannot measure to the biggest VC firms in the US. Except for Base-10, all the other bigger Black-led venture capital firms invest anywhere between $100,000 and $500,000, while VC companies like Andreessen Horowitz and Sequoia Capital can invest upwards of $5 million per company. There is also quite a big difference in the fund size between the bigger Black-led VC firms in the US and the non-Black VC firms. Most Black-led VC firms have a fund size of several million up to several hundred million, while the biggest VCs in the US have billions in assets under management.
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Black-led VC firms
- Base10 was founded by Adeyemi Ajao and TJ Nahigian in 2017.
- They focus mainly on helping early-stage minority-owned start-ups that specifically focus on the development of AI and automation.
- So far, they have focused on investing in companies that serve the sectors of agriculture, construction, waste management, shipping, and logistics.
- Over 60% of their investments have been into companies led or co-led by women or minority founders.
- In 2018, the VC raised a $150 million investment fund. Since then, the company has invested in over 70 companies.
- They also recently started a new investment fund that will focus specifically on start-ups developing automation for daily use.
- They were able to raise $250 million from various investors, surpassing their initial goal of $150 million, which is the largest the investment fund ever raised by a Black-led VC firm.
- According to their CEO, Adeyemi Ajao, the firm invests between $500,000 and $5 million per project.
- Harlem Capital was founded in 2015 by Henri Pierre-Jacques, Jarrid Tingle, Brandon Bryant, and John Henry.
- They have an agnostic approach to the area of investment but their ultimate goal is to support minority-led start-ups.
- Since their inception, they have invested in 23 companies from 11 different industries.
- They usually invest between $500,000 and $1 million in seed and Series A funding rounds.
- In 2019, they gathered a $40 million investment fund, with which they aim to invest in over 1,000 minority and women-led ventures in the next 20 years.
- Backstage is a micro VC that aims to help underrepresented founders find the right amount of funding to realize their ideas.
- The VC does not invest in any specific industry vertical, but focuses exclusively on start-ups led by women, people of color, and LGBTQ+.
- They have so far invested in over 140 start-ups since their inception in 2015, using their $5 million investment fund.
- They invest anywhere between $25,000 to $100,000 per company.
- In 2019, they announced that they will be raising another $36 million fund to help underrepresented founders.
- DreamIt Ventures is an early-stage accelerator program that specifically helps minority-owned startups.
- They help companies in three industry verticals: healthtech, urbantech, and securetech.
- Each company has to undergo a 14-week training through their Dreamit Access program.
- Since their launch in 2008, DreamIt Ventures has helped almost 300 early-stage companies, which have been able to raise an additional $800 million in funding after they completed the accelerator’s program.
- The combined value of the companies under their management exceeds $2 billion.
- DreamIt usually invests up to $500,000 per company.
- They most recently raised an additional $12 million to their investment fund. They are also backed by the $3 billion Water Street Tampa redevelopment project
- Digitalundivided is a social start-up that aims to help Black and Latinx women succeed in their ventures.
- While the company is a social venture and not a true venture capital firm, they have invested heavily in women-led start-ups.
- Their Doonie Fund gathered $150,000, which allowed DID to invest $10,000 into 1,500 women-led start-ups.
- They have continued the to invest up to $10,000 into minority-owned women ventures since then.
- Precursor Venture is an early-seed VC firm based in San Francisco.
- The firm focuses mainly on companies that develop fintech products, digital technologies, or edtech.
- They have invested in over 136 companies in nine different verticals.
- The VC firms typically commits between $100,000 and $250,000 per company but they do reserve the possibility to invest more if the company shows promise.
- So far, the company has completed two investment funds. The first one raised over $15 million, while the second one raised $31 million.
- They have also started a third fund, with the goal to raise at least $40 million to help founders from a wide variety of “backgrounds in terms of gender, race, academic experience and life circumstances.”
MaC Venture Capital
- MaC Venture is a seed-stage venture capital firm based in Los Angeles.
- The firm focuses on technology-based firms that work in commerce, media, health and food, smart cities, finance, education, and immersive reality.
- They have invested in over 100 seed-stage companies.
- According to Marlon Nichols, the founding managing partner, the company invests between $500,000 and $1.5 million per company.
- MaC has had 5 funding rounds in total, with their latest being in 2019 when they raised $100 million.
Non-Black VC firms
- Andreessen Horowitz, also known as a16z, is one of the more recent additions to the venture capital industry.
- Nonetheless, since its inception in 2009, it has invested in more than 830 companies, with over $12 billion assets under management.
- They primarily focus on biotechnology companies, cryptotech, consumer products, and enterprises that range from early-seed to later-stage ventures.
- The firm have raised 17 funds to date, with the last one gathering over $2 billion.
- A16z typically invests around $4 million per company.
- They also recently launched the Talent x Opportunity Fund, rapidly raising $2.2 million in donations for underserved and minority founders.
- Benchmark is a leading VC firm that focuses on early-stage technology start-ups.
- The firm has invested in over 600 companies that develop enterprise software and services, communications, security, semiconductors, mobile computing, consumer services and financial services.
- Some of their biggest success stories include Twitter, Uber, Snapchat, and WeWork.
- While their investment range varies from $100,000 to $15 million, they tend to invest $3 to $5 million initially and expect to invest an additional $5 — $15 million after the company has lifted off the ground.
- They have had nine funding rounds, usually around $400 million. Their latest funding round raised $425 million.
- Benchmark also recently announced that it has starting raising money for its tenth investment fund, which is expected to raise another $425 million.
- Sequoia capital is one of the oldest and most successful venture capital firms in the US.
- It has invested in more than 1,385 companies since 1972, from which some of its most notable investments include Google, Yahoo!, LinkedIn, YouTube and WhatsApp.
- Sequoia mainly focuses on early-stage ventures in the sectors of energy, enterprise, financial technology, healthcare, IT, and mobile.
- They have raised over $15.3 billion in funding from 29 investment funds.
- Their last fund raised over $8 billion.
- On average, the VC firm invests between $4 million and $5 million per company.
- Index Venture is one of the biggest venture capital firms in the US.
- They invest in technology companies from pre-seed to late-stage, with a specific focus on digital innovation, healthcare, financial services, and media.
- They have invested in more than 829 companies since 1996, of which 174 have exited the funding stage.
- Some of their most notable investments include Supercell, Revolut, and Roblox.
- They invest anywhere between $100,000 and $2 million for early-stage start-ups but can go much higher for later-stage companies.
- Index has completed 16 funding rounds, with their latest investment funding raising over $2 billion for the support of emerging entrepreneurs.
- Accel is one of the most influential VCs in the US, with a portfolio featuring investments in companies such as Facebook, Slack, Atlassian, Dropbox, and Spotify.
- Accel mainly focus on seed and early-stage ventures, with a focus on SaaS companies, but they have also invested in the security, consumer products, digital developer and marketplace sectors.
- They have invested in more than 1,460 companies since 1983.
- Their total assets under management surpass $12 billion over 29 investment funds, with their latest funding round raising over $2.5 billion.
- They usually invest anywhere between $1 million to $4 million in early-stage start-ups.
- Intel Capital is the venture capital arm of Intel, which was founded in 1991.
- It has invested in 1,582 technology companies of varying sizes.
- The venture capital firm focuses primarily on technology start-ups in robotics, artificial intelligence, and autonomous technology.
- In 2019 alone, Intel Capital invested $466 million in 25 new start-ups, bringing up the total of their investments to roughly $13 billion.
- Since 2015, Intel has been heavily investing in under-represented founders, devoting close to $300 million to start-ups led by women and minority leaders.
- They have noted that they invest anywhere between $5 million and $10 million per company.
- Kleiner Perkins is one of the most decorated venture capital firms in the world.
- Since 1972, the VC has backed companies like Google, Amazon, Spotify, and Twitter.
- While they invest early to late-stage ventures, they recently announced that they will start focusing more on pre-seed and early-stage start-ups.
- Since their inception, they have invested in more than 1,200 consumer, enterprise, hard tech and fintech start-ups.
- Kleiner Perkins recently announced the closing of its nineteenth fund, raising $700 million. With this, the company will come close to $10 billion in total investments since its creation.
- While they don’t have a specified amount, most of their investments are multimillion dollar deals, with some going over $10 million per company.
- Khosla Ventures is led by one of the most successful investors in the world, Vinod Khosla.
- Khosla Ventures mainly invests in software start-ups of varying sizes, ranging from pre-seed to Series F funding.
- The VC firm has invested in 770 companies across 17 different verticals since 2004.
- With its latest fund, the company has over $5 billion in assets under management. Their last funding round raised over $1.1 billion.
- While the company invests anywhere between $100,000 and $20 million, depending on the stage of the company, most of their investments are for more than $1 million.