Investor FAQs

We’re doing something new and know you have questions. Here are few answers!

How often will investors see returns?

Though there is no perfect answer to this question, we are looking to deliver returns to investors within the first 24 months of capital deployment.

Do I need to be an accredited investor to invest in the fund?

Yes. An accredited investor is a person or entity who is allowed to deal, trade and invest in financial securities as long as they satisfy one (or more) requirements regarding income, net worth, asset size, governance status or professional experience.

What are the investment criteria for the fund?

Our investment matrix is one of the areas that make Collab Capital unique. We follow a set of investment benchmarks but at a minimum our investments must meet the following criteria

  • Minimum Requirements
    • A business owned by 51% or more by a Black founder
    • Tech, tech enabled, or innovative company with revenue growth potential of at least $10M
    • Collab Capital is able to provide value and resources
    • Founder attributes of a heart for community impact and a desire for ownership/optionality
    • Collab Capital evaluates and invest in businesses with revenue growth over a minimum of 3 month
  • Desired
    • Minimum of $10K MoM in Revenue with potential realization of ROI in within the first 1 to 3 years of investment
How does Collab Capital identify potential investments?
At Collab Capital we look for 3 key things initially. First we look for companies and founders working on innovative solutions in niche or growth markets. Second, we look for companies with revenue and are tracking towards 1MM in annual revenue. Additionally, we want to ensure that we can see a path to 10MM in annual revenue. Finally, while placing the company’s financials in our proprietary calculations, we look to ensure that our model is a good fit for their business model and market. Though we will always remain opportunistic we want to ensure that our model meets the needs of the founder and their desired path of growth. For more information on investment criteria please see the “What are the investment criteria for the fund” FAQ
How does this portfolio differ from other funds?
Because Collab Capital has identified a massive gap, and consequently an opportunity, in the funding market we have created a new approach/financial product to close the gap. This solution to this identified gap and leveraged networks of the founders has often and continues to find the best companies to invest in financially.
Are there investments Collab Capital will not make?
Our investment framework is based on impact and guided by the redemptive investment mindset. We see a lot of potential for our model in direct to consumer companies and enterprise software. We’ve also seen early signs of potential in tech enablement and productivity businesses. Finally, we won’t invest in industries/businesses that require long research periods or changes to policy for the product to eventually “fit” a market. These include biomedical, advanced hardware/electronic devices (think a new automobile) and aerospace/transportation (trains/rockets/etc.) companies. Additionally, our investments will be, in many ways, reflective of what we (the General Partners) collectively believe in.
How much are the General Partners investing in the fund?
Collab Capital General Partners will invest 2% of the fund.
Can an LP invest as an individual or as a company?
Collab Capital does not provide a vehicle for individual investors to capitalize businesses directly. However, we do offer opportunities for our Limited Partners to play a more significant role in a startup’s growth and compensate them accordingly.
What industries and geographic locations will be in Collab Capital’s portfolio?
We are targeting cities like Atlanta, Detroit and Baltimore, where there is limited access to funding sources, but high social and corporate capital. These and other cities will be assessed as we look for where we can be most impactful and bring value to our portfolio.
What industries and geographic locations will be in Collab Capital’s portfolio?
We are targeting cities like Atlanta, Detroit and Baltimore, where there is limited access to funding sources, but high social and corporate capital. These and other cities will be assessed as we look for where we can be most impactful and bring value to our portfolio.
Is there an advisory board? Can LPs be on the board?
Yes and yes. We are actively building an advisory board to help us achieve the goals of the fund and its portfolio companies.
When will Collab Capital go public with the fund?

The fund is active. You can hear more about our origins and recent self-published news and information on our Capital Innovation medium publication.

Want more on how we're investing in Black businesses?

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invest@collab.capital

384 Northyards Blvd NW
Suite 100
Atlanta, GA 30313