Black-led VC firm, Harlem Capital, raises $134 million Second Fund

Harlem Capital, a diversity-focused venture capital firm, announced last week the closing of Harlem Capital Partners Venture Fund II, LP (“Fund II”) at US$134 million. The fund was oversubscribed from its target of US$100 million and above its initial cap of US$125 million.

Harlem Capital was founded in 2015 with a mission to fundamentally and forever change the face of entrepreneurship. The firm aims to invest in 1,000 diverse founders over the next 20 years. Established as an angel syndicate, Harlem Capital closed its US$40 million inaugural fund in November 2019 and now manages US$174 million in assets under management.

Harlem Capital Partners Venture Fund I (“Fund I”) has invested in 23 companies – including e-commerce platforms, Pangaea, CashDrop, Malomo and Repeat, and wellness brands, Wellory, Expectful, Wagmo and Shine.
Fund I’s portfolio is comprised of 61 percent Black or Latino led companies and 43 percent women-only led companies. The fund is still actively investing with a target of 5 more initial investments.

Fund II seeks to invest in 45 companies, maintaining Harlem Capital’s commitment to minority and women founders, but shifting focus to early seed stage investments in companies that are post-product. Fund II will remain industry agnostic, but there will be a deeper focus on enterprise and consumer technology. The firm targets 10 percent+ ownership and will lead or participate in funding rounds.

With its second fund, Harlem Capital will also introduce “Culture Carry” – allowing Fund II founders to split 1 percent of the fund’s carry. Fund I founders will also now have culture carry. The 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.

“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,” said Henri Pierre-Jacques, Managing Partner of Harlem Capital.

Fund II’s limited partners (LPs) include 14 world-class institutions, 4 global corporations, and 6 family offices. The firm is proud to have the support of 18 general partners (GPs) of other investment funds, with 42 percent of Fund II’s individual LPs being women or people of color.

“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,” said Jarrid Tingle, Managing Partner of Harlem Capital.

About Harlem Capital: Harlem Capital is an early-stage, diversity-focused venture capital firm founded in 2015 by Henri Pierre-Jacques, Jarrid Tingle, Brandon Bryant and John Henry.

According to the company’s website, Harlem Capital is a venture capital firm on a mission to change the face of entrepreneurship by investing in 1,000 diverse founders over the next 20 years. The firm prefers to invest in early-stage companies and reserve capital for investments in the startups founded by women founders and minorities in the United States.

The notable investment portfolio of Harlem Capital Partners includes Aunt Flow, Beauty Bakerie Cosmetics Brand, Jobble, Moving Analytics, Paladin, ProSky, Stantt, Sudu, Wagmo, etc.

Visit the firm’s website and subscribe to their newsletter for more information.

Source: Harlem Capital