Diversity-focused venture capital firm Harlem Capital has announced raised it has raised $134 million for its second fund — significantly above its initial target of $100 million and its initial cap of $125 million.
Harlem Capital Partners Fund II is aiming to invest in 45 companies, maintaining the company’s mission to support minority and women founders.
The fund will see a shift to early seed-stage investments in companies that are post-product. There will also be a deeper focus on enterprise and consumer technology. The firm targets 10%+ ownership and will lead or participate in funding rounds.
Harlem Capital also announced that Fund II will introduce “Culture Carry” which will allow founders to split 1% of the fund’s carry. Fund I founders will also now have culture carry. The firm said the decision will ensure that founders benefit directly from each other’s success.
The news follows the success of Harlem Capital Partners Venture Fund I (“Fund I”) which has invested in 23 companies — including e-commerce platforms, Pangaea, CashDrop, Malomo and Repeat, and wellness brands, Wellory, Expectful, Wagmo, and Shine. Fund I’s portfolio is comprised of 61% Black or Latino-led companies and 43% female-only-led companies. The fund is still actively investing with a target of five more initial investments.
Henri Pierre-Jacques, Managing Partner of Harlem Capital said: “We are focused on building an institution and platform to support diverse founders for many generations. Fund II is one step closer to our mission, but we know the work and journey continues. We are excited to provide more capital and resources to even more diverse founders tackling unique problems.”
Fellow Managing Director Jarrid Tingle said: “We are grateful for the support from our portfolio companies, LPs, and broader network who made this fundraise possible. We have always believed that people of color and women can build incredible companies; they just need fair access to capital.”
Tingle added: “It is wonderful to see increased reception to our strategy — a sign that the world is moving in the right direction.”
Harlem Capital was launched in 2015 by Pierre-Jacques and Tingle in New York City’s Harlem neighborhood.
It is now one of the largest diversity-focused VC firms in the US. Upon launching Pierre-Jacques and Tingle announced their goal of investing in 1,000 diverse founders in 20 years.
Earlier this year the firm launched its latest Diverse Founder Report. According to the firm, there has been ‘incredible growth’ for Black and Latinx-led venture-backed firms.