Posted: 1:16 PM PDT · October 31, 2024
In a significant development in the world of venture capital, BBG Ventures has announced the raising of a new $60 million fund aimed at supporting founders from diverse backgrounds. This move comes as funding to diverse founders continues to dip, with Black founders, for example, landing just 0.3% of all capital raised in the first half of this year.
The Challenge of Funding Diverse Founders
According to Crunchbase senior data reporter Gené Teare, the trend of declining funding to diverse founders has shown no signs of reversal. "Black founders, for instance, landed just 0.3% of all capital raised in the first half of this year," Teare told Business Insider. This stark reality underscores the need for more focused efforts to support underrepresented groups in the startup ecosystem.
BBG Ventures’ New Fund: A Slight Departure from its Focus on Women Founders
While BBG Ventures has been known for backing exclusively women founders, its new fund is a slight departure from this focus. However, the firm’s co-founder Nisha Dua reassures that the new fund will still prioritize support for diverse founders. "Returning LPs increased their fund commitments for this fund, and we have also welcomed new LPs such as Melinda French Gates’ Pivotal Ventures and Fairview Capital," Dua told Business Insider.
Focus Areas for BBG’s New Fund
The latest BBG fund will focus on supporting founders building in the following areas:
- Healthcare: With the growing importance of healthcare technology, BBG’s new fund aims to support startups working on innovative solutions in this space.
- Fintech: As fintech continues to revolutionize the way we manage our finances, BBG Ventures is committed to backing founders tackling some of the industry’s most pressing challenges.
- AI: With AI transforming industries across the board, BBG’s new fund aims to support startups leveraging this technology to drive growth and innovation.
What This Means for the Startup Ecosystem
The raising of a new $60 million fund by BBG Ventures is a significant step forward in the efforts to support diverse founders. By focusing on areas such as healthcare, fintech, and AI, the firm aims to address some of the most pressing challenges facing underrepresented groups in the startup ecosystem.
Related News
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- Energy Revolution Ventures’ $18M Fund Lays Bet on ‘New Chemistry’ Startups in Energy and Hydrogen: Another notable development is Energy Revolution Ventures’ new $18 million fund, which aims to support startups working on innovative energy and hydrogen solutions.
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