Collab Capital has announced the close of its $75 million Fund II. The Atlanta-based firm now manages $125 million in assets, making it one of the leading Black-led VC firms in the U.S.
Fund II will focus on Seed and Series A investments in high-growth, tech-enabled companies addressing foundational needs. This strategy reflects Collab’s continued focus on what it calls “the building blocks of shared prosperity.”
The new fund brings a mix of new and returning LPs, including Apple, the Leon Levine Foundation, California IBank, and Goldman Sachs Asset Management’s External Investing Group.
Collab’s first fund, launched in 2020, invested in 38 companies, several of which have reached million-dollar revenue months, secured national contracts, and become cash-flow positive. Fund II has already backed six companies, including SparkCharge, a mobile, off-grid EV charging infrastructure; River Health, an affordable telehealth provider for underserved workers; and an AI-powered platform that builds fully functional mobile apps in minutes. Beyond capital, Collab continues to evolve its “collaboration-as-a-service” model, providing founders with strategic guidance, coaching, enterprise connections, and operational support.
Initiatives like their Executive-in-Residence program and quarterly Strategic Town Halls reflect their deep investment in founder success. They have also prioritized founder well-being, offering free therapy sessions through a partnership with CWC Coaching and Therapy.
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Fund II will invest in approximately 30 companies over five years, with 40% of capital reserved for follow-on investments in top performers. Jewel Burks Solomon, co-founder and managing partner at Collab, said in an interview, “I’m really excited and proud that we were able to increase the size of the fund by a significant margin and successfully closed, given the difficulties and the challenges in the fundraising market.”
Raising the second tranche of investment took longer than anticipated, primarily due to a shifting economic climate and fluctuating sentiments around diversity, equity, and inclusion (DEI) initiatives. Burks Solomon pointed out that higher interest rates, reduced market liquidity, and fewer companies going public have all contributed to a tougher fundraising environment.
Despite broader economic challenges, DEI-focused initiatives have faced increased scrutiny and opposition under the current administration, making it even more difficult for firms like Collab to attract investments. Issues such as the Supreme Court’s 2023 decision banning affirmative action in college admissions further complicated the fundraising landscape, according to Burks Solomon. “It’s really important to us to be able to stay in business and continue to do the work,” Burks Solomon emphasized.
Collab has since adjusted its language while maintaining its commitment to ensuring capital flows to historically underfunded communities and fostering solutions for shared prosperity. “As gaps continue to widen and we see the continued consolidation of power,” she added, “it’s even more important for us to exist. We are really looking in places where other people are not, to find these amazing entrepreneurs who are building the solutions that we need.”
