Illumen Capital has launched a $32.75 million Catalyst Fund to support emerging fund managers and founders from underrepresented backgrounds.
This initiative aims to counteract the decline in funding for diverse founders, particularly Black founders who received less than 1% of venture capital last year. Sequoia's 2020 fund performance shows the potential of strong fund management.
Illumen Capital, with $285 million in assets under management, recognizes biases in venture capital funding during economic uncertainty. The Catalyst Fund complements their previous funds, which focused on more established managers. OpenAI's recent legal challenges highlight the complexities of the tech landscape.
Key Highlights of the Catalyst Fund:
- Supports first-time managers and early-stage founders.
- At least 65% of capital invested in first-time venture managers.
- Up to 35% as direct co-investments.
- Focus on domestic investments (at least 90%).
- Up to 20% in emerging markets.
- Target sectors: education, health and wellness, financial inclusion, climate, and sustainability.
The fund aims to deploy capital within 18 months and demonstrate the value of backing diverse-led funds. For more on tech industry trends, see Siri's evolving development.