Collab Capital raises $75M to support inclusive innovation in Work, health and infrastructure

Collab Capital, a Black-led venture capital firm based in Atlanta, today announced the successful closing of its second fund, securing $75 million in committed capital. The raise expands on the momentum from its inaugural $50 million Fund I and brings the firm’s total assets under management to $125 million. New and returning limited partners include Apple, Leon Levine Foundation, California IBank, and the External Investing Group at Goldman Sachs Asset Management. Fund II will target Seed and Series A investments in startups addressing foundational needs in economic mobility, healthcare, and community infrastructure—areas Collab dubs “the building blocks of shared prosperity.”

Fund I’s success lays groundwork

Since its 2020 debut, Collab’s inaugural $50 million Fund I invested in 38 companies, producing strong outcomes. Several of these startups—such as Hairbrella, Revry, Intus Care, Goodr and Culina Health—have hit million-dollar revenue months, secured national contracts and reached cash flow positive status. “Fund I showed what’s possible when you back the right people with the right support,” said Jewel Burks Solomon, co-founder and managing partner of Collab.

Strategic focus on equity and infrastructure

Collab Capital’s sharpened investment model for Fund II is organized around three thematic pillars:

• Economic Mobility – boosting workforce readiness, job access and capital equity
• Healthcare Access – scaling tech-enabled care to underserved populations
• Community Infrastructure – delivering resilient solutions in power, transportation, broadband, housing and food

The fund plans to deploy $1–2 million into roughly 30 companies over five years, reserving 40 percent for follow-on funding. Six companies have already secured capital: SparkCharge (mobile off-grid EV charging), River Health (membership-based telehealth for hourly and uninsured workers), and A0 (AI-generated React Native app platform).

Support beyond capital

Emphasizing “collaboration-as-a-service,” Collab offers founders strategic mentorship, go-to-market planning, enterprise introductions and follow-on investor access. Highlights include:

• Executive-in-Residence program, with AI expert Dr. Nashlie Sephus
• Quarterly strategic town halls featuring top-tier industry leaders
• Founder well-being initiatives, including free therapy sessions

“We believe this is the time to lean in, not pull back,” said Barry Givens, co-founder and managing partner. Collab aims for long-term impact—job creation, economic mobility and generational wealth—for both founders and communities.

Racial Disparities in Venture Capital: A Stark Backdrop

Despite local success stories like Collab’s, the broader landscape for Black entrepreneurs in the U.S. remains marked by persistent underinvestment.

• A decade-long decline: After peaking at $4.5 billion (2021) and $2.5 billion (2022), funding dropped to ~$699 million in 2023—the lowest annual total since at least 2016.
• Deal volume falling: The first half of 2024 saw just 66 deals to Black founders—down 53 percent from H1 2023—with Q2 hitting record lows since 2019.
• Structural underrepresentation: Though Black founders make up around 14.5 percent of U.S. entrepreneurs, they account for just 3.5 percent of VC-seeking founders—and often raise only one-third the capital of non-Black peers.
• Investor diversity matters: Black investors hold only about 4–5 percent of investment partner roles in U.S. VC firms—and their presence significantly boosts funding likelihood for Black founders.
• Quarterly snapshot: In Q1 2025, 17 Black-founded startups raised $61.9 million (avg. seed about $2.3 million), with AI startups leading the way; one standout, Campus, secured a $46 million Series B .

Collab’s Role in Shaping an Inclusive VC Ecosystem

Against this context of systemic underfunding, Collab Capital stands out as an intentionally structured fund designed to combat inequity. Key differentiators include:

1. Focused investment thesis – targeting sectors tied to equity and essential infrastructure
2. Lived experience – backing founders who understand the problems they aim to solve firsthand
3. Deep support model – beyond capital, founders receive coaching, mental health resources and strategic community
4. LP partnerships – drawing institutional investors like Apple and Goldman Sachs, lending credibility to its mission
5. Track record validation – Fund I companies demonstrate both impact and financial viability

While the wider venture ecosystem underinvests in Black-led startups—with funding rates hovering at historic lows—Collab’s new $75 million fund signals optimism and actionable commitment. Its measured, mission-aligned approach may serve as a replicable model for institutionalizing capital inclusion.