In a significant development in the venture capital landscape, Harlem Capital has announced that it has raised $134 million for its second fund. This amount is well above the firm’s target of $100 million and its initial cap of $125 million.
Founding Story and Early Success
Harlem Capital was founded in 2015 by managing partners Henri Pierre-Jacques and Jarrid Tingle. Initially, it started as an angel syndicate with a goal to invest in founders from diverse backgrounds. The firm then announced its first VC fund of $40 million at the end of 2019.
Portfolio Companies
The firm’s investments include e-commerce companies such as Pangaea, CashDrop, Malomo, and Repeat, as well as wellness startups like Wellory, Expectful, Wagmo, and Shine. Interestingly, it hasn’t invested all of that initial $40 million yet, with the firm aiming to make five more investments from Fund I.
Diversity Focus
A notable aspect of Harlem Capital’s approach is its emphasis on diversity. A staggering 61% of its Fund I portfolio companies are led by Black or Latinx executives, while 43% are led exclusively by women. While the firm was founded in New York City’s Harlem neighborhood, it invests in startups across the United States.
Fund II: Shifting Focus to Seed-Stage Investments
With Fund II, Harlem Capital is shifting its focus to seed-stage investments in companies that are post-product. The firm aims to invest between $750,000 and $1.5 million, taking a 10% stake or more. It will also introduce the concept of ‘culture carry,’ where the founders backed by the fund will split 1% of the carry – essentially, they’ll get a stake in the fund’s profits and each other’s success.
Industry Agnostic with a Focus on Consumer and Enterprise Tech
Harlem Capital is industry agnostic but will be focusing on both consumer and enterprise tech with Fund II. This strategic decision allows the firm to explore opportunities across various sectors, potentially leading to more diverse investments.
Limited Partners: 42% Women or People of Color
The focus on diversity extends to the limited partners who invested in Fund II, with an impressive 42% being women or people of color. This demographic balance is a testament to Harlem Capital’s commitment to creating a platform that supports underrepresented founders.
Managing Partner Henri Pierre-Jacques’ Statement
"We are focused on building an institution and platform to support diverse founders for many generations," said Managing Partner Henri Pierre-Jacques in a statement. "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."
Recent Promotions
Last week, Harlem Capital also announced that it had promoted Brandon Bryant to partner and Gabby Cazeau and Kelly Goldstein to principal.
Conclusion
Harlem Capital’s second fund raise is a significant milestone in the venture capital industry. With its focus on diversity and seed-stage investments, the firm is poised to make a meaningful impact on the startup ecosystem. As Harlem Capital continues to grow and evolve, its commitment to supporting underrepresented founders will undoubtedly contribute to a more inclusive and diverse tech landscape.
About TechCrunch
TechCrunch provides comprehensive coverage of the startup ecosystem, including news, analysis, and insights from industry experts. With a focus on diversity, inclusion, and innovation, our publication aims to empower entrepreneurs and investors alike. Subscribe to our newsletters for the latest updates in the world of startups.
