The NAACP today announced NAACP Capital, a $200 million capital fund to support fund managers focused on issues affecting people of color.
The fund was conceived in partnership with Kapor Capital, Kapor Center and nine other venture fund managers. Last year, Crunchbase found that black founders raised less than 1% of all venture capital funds, with the group raising 0.3% in the first half of this year.
A fund of funds refers to an investor investing in multiple venture funds rather than investing in individual funds or startups. This is a popular way for influential investors to use their money as broadly as possible. Kapor is a VC firm that has always focused on racial justice investing. However, other well-known companies have used similar approaches. For example, Melinda Gates’ Pivotal Ventures invests in women-led funds and invests directly in startups.
