Zeal Capital Companions pronounces shut of $82M Fund II
Zeal Capital Companions introduced on Wednesday the shut of its second fund, elevating $82 million. Restricted companions within the fund embrace Citi Influence Fund, M&T Financial institution, Wells Fargo, and Spelman School. It hopes to spend money on no less than 25 early-stage firms, writing examine sizes between $1 million and $2.3 million, with 50% of the fund reserved for follow-on investments.
Talking to TechCrunch, Nasir Qadree, founder and managing associate of Zeal, mentioned Fund II will give attention to monetary know-how, healthcare, and future of labor, as its different fund did. It has already invested in no less than 5 firms, together with the maternal well being platform Seven Starling and the fintech Debbie.
Qadree described the funding setting for Fund II as “undoubtedly difficult” due to macroeconomic uncertainty, LP rebalancing, and tighter allocation home windows.
“However these headwinds additionally sharpened our technique and reaffirmed the energy of our method,” Qadree mentioned. “I’m proud to share that over 80% of our restricted companions from Zeal Fund I continued with us into Fund II, a sign of deep conviction in our skill to constantly again category-defining firms.”
Black-led and based funds akin to this have been making some sizeable closes recently.
Slauson & Co. introduced a $100 million Fund II final September, adopted by Illumen Capital, based by Daryn Dodson, saying the increase of a $32.75 million Fund in November. This yr, Sydney Thomas’ Symphonic Capital introduced the increase of a $13.5 million inaugural fund, whereas Cherryrock Capital, based by Stacy Brown-Philpot, introduced the increase of its $172 million Fund I.
A few of these funds are common of their mission, whereas others are extra specific of their goal of underrepresented communities, exhibiting that urge for food nonetheless exists for such funds, regardless of the stress from the present US presidential administration, and amongst people who help it, towards something that could possibly be thought of “DEI”.
Total, Zeal, a extra generalist fund based in 2019, has invested in 40 firms. Fund I introduced its shut at $62.1 million in 2021.