Collab Capital has raised $75 million for its second venture fund, with Apple and Goldman Sachs Asset Management among the backers. This gives the Black-led venture capital firm more money to invest in early-stage companies, at a time when Black founders continue to face a major gap in access to capital.
Black founders are central to Collab’s history and mission. When Collab launched Fund I in 2021, Goldman Sachs described it specifically as an early-stage VC fund investing in Black founders and created to address the lack of venture funding reaching them.
What Is Collab Capital and Who Does It Fund?
Collab Capital is an Atlanta-based venture capital firm that invests in early-stage U.S. companies, focusing on economic mobility, healthcare access and community infrastructure. It was founded by Jewel Burks Solomon and Barry Givens, who are both entrepreneurs. Collab Capital was built around the idea that promising leaders should not have stunted growth due to a lack of capital and required networks.
This second fund follows a $50 million first fund and brings Collab’s total assets under management to $125 million. The plan is for Fund II to invest in Seed and Series A companies, with plans to put between $1 million and $2 million into approximately 30 companies over five years.
Collab’s capital portfolio includes companies like Goodr, Culina Health and SparkCharge, showing the range of businesses that fit its investment strategy. Collab is looking for businesses that address real problems and founders with a strong understanding of their markets.
Why Did Collab Capital Raise $75 Million?
Collab Capital raised $75 million to give its venture firm more capital to invest in early-stage companies and continue its strategy of backing overlooked founders. Among the investors backing this new fund are Apple and Goldman Sachs Asset Management. Both companies had previously supported Collab.
Apple backed Collab through its Racial Equity and Justice Initiative, while Goldman Sachs invested in the firm through its Launch With GS initiative. The Launch With GS initiative supports diverse investment managers and entrepreneurs.
The timing could not have been better, with startup funding becoming more selective and many younger companies struggling to raise money. With major institutional investors behind Collab, the firm has more financial firepower to find and fund companies outside traditional venture capital networks.
This does not necessarily mean that Black founders suddenly have more access to money. Instead, one venture firm now has a larger pool of capital to support the founders it believes can build significant businesses.
Why Does Apple and Goldman Sachs Backing Matter?
Apple and Goldman Sachs backing matters because it puts major institutional investors behind a Black-owned venture firm focused on founders who have historically been overlooked. Black Americans are rapidly starting businesses, but the amount of venture funding they get is small. Collab seeks to solve this problem by sourcing more capital for founders who may not have traditional investor networks.
This institutional backing also gives Collab more credibility. Relationships and referrals largely influence venture capital. A firm with major backers and a growing track record can open doors that cold outreach alone never would. When companies like Apple and Goldman Sachs keep putting money behind funds like Collab, they are showing that backing Black-owned firms is an investment strategy, not just a diversity initiative.
What Could the Fund Mean for Black Founders?
The fund could give Black and other overlooked founders greater access to the capital, connections and support needed to build and grow their companies. Money is important at every stage, from paying employees and developing products to funding marketing, technology and expansion. Funds in place give founders breathing space to survive the early periods, when the company is not yet profitable.
Collab says its first fund invested in 38 companies, with portfolio businesses reaching major milestones including national contracts, million-dollar revenue months and positive cash flow. Fund II gives the firm another $75 million for larger-scale investment.
Collab Capital cannot close the gap in national funding alone, but $75 million is a meaningful amount of capital for a market that needs more of it. Black founders have already shown the ambition to build; investors need to back that ambition with funds that help them grow.
