Harlem Capital Raises $134M for Diversity-Focused Investing

Harlem Capital Announces Second Fundraise

Harlem Capital has successfully secured $134 million for its second fund. This amount significantly surpasses both its initial target of $100 million and the planned cap of $125 million.

Firm Background and Initial Investments

Founded in 2015 by managing partners Henri Pierre-Jacques and Jarrid Tingle, the firm began as an angel syndicate. Its primary objective was to provide capital to entrepreneurs from underrepresented backgrounds.

The firm subsequently launched its first venture capital fund, totaling $40 million, in late 2019. Investments from Fund I include companies like Pangaea, CashDrop, Malomo, and Repeat in the e-commerce sector.

Furthermore, Harlem Capital has invested in wellness-focused startups such as Wellory, Expectful, Wagmo, and Shine.

Fund I Portfolio and Investment Strategy

Harlem Capital is still actively deploying capital from its initial $40 million fund. The firm intends to complete approximately five additional investments from Fund I.

A significant portion, 61%, of the companies within Harlem Capital’s Fund I portfolio are led by Black or Latinx executives. Additionally, 43% of these companies have exclusively women in leadership positions.

Despite being established in Harlem, New York City, the firm’s investment scope extends nationwide, encompassing startups across the United States.

Fund II: Focus and Structure

With Fund II, Harlem Capital is concentrating its efforts on seed-stage investments. These investments will target companies that have already launched their product.

The firm plans to allocate between $750,000 and $1.5 million per investment, aiming for a stake of 10% or greater in each portfolio company.

While remaining industry agnostic, Fund II will prioritize both consumer and enterprise technology ventures.

A novel approach, termed “culture carry,” will be implemented. This structure allows founders supported by the fund to share in 1% of the fund’s carried interest – effectively granting them a share in the fund’s profits and the success of their peers.

Diversity in Limited Partners

The commitment to diversity extends to the fund’s limited partners (LPs). 42% of the LPs contributing to Fund II are women or people of color.

Looking Ahead

“We are focused on building an institution and platform to support diverse founders for many generations,” stated Managing Partner Henri Pierre-Jacques. “Fund II is one step closer to our mission, but we know the work and journey continues.”

The firm expressed excitement about providing increased capital and resources to a wider range of diverse founders addressing unique challenges.

Recent Promotions

Harlem Capital recently announced internal promotions. Brandon Bryant has been elevated to the position of partner, while Gabby Cazeau and Kelly Goldstein have been promoted to principal.