Harlem Capital, a venture capital firm founded in 2015 with the mission of backing diverse founders, is reportedly in the process of raising a $150 million fund. If successful, this would be the firm’s largest fund to date, surpassing the $134 million it raised in 2021 and the $40 million it raised for its inaugural fund in 2019.
With $174 million in assets under management and over 80 investments made since its inception, Harlem Capital has established itself as a prominent player in the venture capital space. The firm focuses on early-stage post-product companies from various sectors, with a particular emphasis on consumer and enterprise tech. Some of their notable investments include Propense.ai, Poolit, and Gander, an e-commerce platform.
One of Harlem Capital’s key strategies has been to raise funds from diverse limited partners. This aligns with the firm’s commitment to supporting the next generation of underrepresented founders. The success of their oversubscribed Fund 2, which came after the heightened awareness of racial inequality due to movements like Black Lives Matter, demonstrated the industry’s willingness to invest in historically marginalized groups.
However, Harlem Capital’s efforts to raise its third fund come at a time when backlash against diversity and inclusion initiatives has gained traction in various industries across America. Despite this challenging environment, the firm’s ability to secure $150 million would not only be a testament to their own success but also a sign that the industry still believes in and supports talented individuals from underrepresented communities.
By continuing to back diverse founders and raising substantial funds, Harlem Capital is playing a crucial role in reshaping the venture capital landscape. Their commitment to promoting diversity and inclusion not only creates opportunities for underrepresented entrepreneurs but also contributes to a more inclusive and equitable society. As investors and supporters, we have a responsibility to acknowledge and address the systemic barriers that have hindered progress in these communities. Harlem Capital’s fundraising efforts serve as a reminder that investing in diversity is not only the right thing to do but also a sound business decision.
