At Collab Capital, we are committed to investing in innovative, early-stage, Black-owned companies. We are particularly interested in companies focused on three core areas:
The Future of Work
In the aftermath of the Covid-19 outbreak, we saw a tremendous uptick in remote work and geographically dispersed teams. This coincided with the already increasing demand for automation and collaboration tools as well as the expansion of e-commerce. We are interested in funding companies who are on the forefront of these trends and are building tech-enabled solutions for the workers and workplaces of the future.
The Future of Care
We are interested in backing entrepreneurs who are re-imagining and designing technology to increase access to all aspects of health and wellness including mental health, feminine care, and elder care.
The Future of Learning
Schools, universities and adult education providers have traditionally lagged behind other sectors from a technology standpoint. The Covid-19 pandemic and the move to remote learning emphasized a number of pre-existing pain points, including many that disproportionately affected Black students. We would love to meet startups on the cusp of the latest research and trends in education who are finding innovative ways to deliver information via technology.
Black founders represent both the fastest growing entrepreneurial segment and the most under-resourced and under-networked segment in the US. At the intersection of these truths lies a massive market opportunity.
Who We Invest In
What We Look For
Stage & Check Size
We write first checks between $500-750K and follow on investments up to $2M. Our initial check size typically allows founders to reach the key milestones in their early stage startup, and therefore we prefer to either lead deals or be the sole investors in the round. We will participate in larger rounds on a very limited basis, however, the majority of our investments will be made on our SPACE agreement. To explore investment scenarios please read Jewel’s blog post.
In general, we are industry agnostic. We’re particularly interested in companies that we feel represent the future of work, care and learning, however, we have and will continue to invest in companies that may fall outside of this sphere.
Please Read Before Applying
There are a few industries that will almost always result in a quick “no” from us: biotechnology, cannabis and tobacco, cryptocurrency and tokens, food and beverage, gambling, liquor and spirits, professional services agencies, brick-and-mortar businesses (physical retail) and real estate. Due to the nature of our fund, Collab Capital is not permitted to invest or provide grants to charitable organizations.
Generally, we want to invest in companies approaching market sizes of $1B and above. That doesn’t necessarily mean we’re expecting your business to reach $1B+ outcomes, but we need to see that the market is large enough to be worthwhile. If you’re entering a highly competitive market with several large incumbents, we want to see that you’re poised to gain market share by doing things differently and/or better than your competitors.
Additionally, we look to see whether the market will be a good fit for our SPACE investment model.
We aim to invest in a new class of entrepreneurs who are committed to things like giving back, hiring in their communities and investing in the founders that come after them. Founders who are purely focused on building their own business and personal wealth are not a fit for us. We like to see companies who are committed to gender pay equality, environmental sustainability, and other societal causes. Finally, our name is literally built on the concept of collaboration. We like working with founders who are coachable, hardworking, transparent and who share our passion for driving tangible change for the Black community.
While we will evaluate companies anywhere in the country, we are primarily looking to back companies based in cities with a high concentration of Black entrepreneurs and a low concentration of capital. Among these cities are our hometown of Atlanta, Washington DC, Houston, TX, Detroit, MI, St. Louis, MO and New Orleans, LA.
We are only able to invest within the US and US territories at this time.
Apply for Funding
Learn more about how we invest and what we look for in our founders and portfolio companies.