Cherryrock Capital Launches $172M Fund for Diverse Founders

Cherryrock Capital Closes $172 Million Fund I

Cherryrock Capital, established by former TaskRabbit CEO Stacy Brown-Philpot, has announced the final closing of its $172 million Fund I. The fund boasts a prominent group of limited partners.

Among those contributing to the fund are JPMorgan, Goldman Sachs, MassMutual, Melinda French Gates’ Pivotal Ventures, Reid Hoffman, Mellody Hobson, and Sheryl Sandberg.

Fundraising Timeline and Investment Focus

According to a statement given to Bloomberg, the fund reached its closing in January. Despite this success, the firm encountered a difficult fundraising environment.

Brown-Philpot indicated that securing Fund I took approximately two years, a consequence of the challenging conditions within the venture capital industry during its 2023 launch.

Fund I is strategically designed to invest in companies during their Series A and Series B funding rounds. Brown-Philpot highlighted a gap in the market for firms specializing in leading later-stage investments for founders from diverse backgrounds.

Initial Investments and Firm Philosophy

To date, Cherryrock Capital has made two investments. The firm participated as a co-lead in the Series B funding round for Coactive AI, alongside Emerson Collective.

Additional investors in the Coactive AI round included a16z and Bessemer. Cherryrock also contributed to the Series A funding for Vitable, a health-focused company from Y Combinator, alongside Citi Impact Fund and First Round Capital.

The fund’s investment strategy is particularly relevant given the current scrutiny surrounding diversity, equity, and inclusion initiatives.

Stacy Brown-Philpot’s Background

Stacy Brown-Philpot brings a wealth of experience to Cherryrock Capital. Her prior roles include positions at Alphabet and Google.

She currently serves on the boards of directors for several companies, including StockX and HP. Furthermore, she was a key founding member of the Open Opportunity Fund, SoftBank’s $100 million fund dedicated to supporting diverse founders.

Cherryrock Capital did not respond to a request for additional commentary at the time of this report.