Harlem Capital Closes Second Fund, at $134M

Harlem Capital, a NYC-based diversity-focused venture capital firm, closed its second fund, at $134m.

Harlem Capital Partners Venture Fund II, LP, was oversubscribed from its target of $100m and above its initial cap of $125m. Limited partners include 14 world-class institutions, 4 global corporations, and 6 family offices.

Founded in 2015, Harlem Capital aims to invest in 1,000 diverse founders over the next 20 years. Established as an angel syndicate, the firm closed its $40m inaugural fund in November 2019 and now manages $174m in assets under management.

Fund II seeks to back 45 companies making initial investments of $750k to $1.5m in U.S. seed rounds for 10%+ ownership. The fund maintains Harlem Capital’s commitment to minority and women founders but is shifting focus to early seed stage investments in companies that are post-product.

The new fund will remain industry agnostic, but there will be a deeper focus on enterprise and consumer technology.

Harlem Capital Partners Venture Fund I 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 vehicle is still actively investing with a target of five more initial investments.

With its second fund, Harlem Capital will also introduce “Culture Carry” — allowing Fund II founders to split 1% of the fund’s carry. Fund I founders will also now have culture carry. The decision ensures all founders will benefit directly from each other’s success, aligned with Harlem Capital’s mission to promote a stronger ecosystem of diverse founders.

While the firm is currently accepting applications for a Platform & Community Manager, the team includes:

  • Henri Pierre-Jacques, Managing Partner,
  • Jarrid Tingle, Managing Partner,
  • Brandon Bryant, Partner,
  • Gabby Cazeau, Principal,
  • Kelly Goldstein, Principal,
  • Nicole DeTommaso, Senior Associate.

FinSMEs

01/04/2021