Sixty8 Capital Launches $20M Fund for Underrepresented Founders

Addressing the VC Funding Gap for Underrepresented Founders

It’s evident that founders identifying as Black, women, Latinx, and LGBTQ+ encounter significant obstacles in securing venture capital investment, particularly within Silicon Valley. This disparity may be a key reason why Sixty8 Capital, an Indianapolis, Indiana-based firm, has initiated a new $20 million fund.

Fund Investors and Partnerships

The fund benefits from investments originating from The Indiana Next Level Fund, 50 South Capital, Bank of America, Eli Lilly and Company, First Internet Bank, and the Central Indiana Community Foundation. Sixty8 is collaborating with Allos Ventures, another Indianapolis venture capital firm, with Paul Ehlinger of Allos serving as a venture partner.

Empowering Diverse Communities Through Capital

“This fund allows us to truly empower individuals of color, women, and other diverse groups by directly providing them with capital,” explained Kelli Jones, managing partner at the firm. “We aim to invest in companies founded by diverse individuals who are developing innovative solutions.”

Jones emphasized the unique opportunity Sixty8 can address, expressing excitement about creating an impact within Indiana, the Midwest, and portions of the South.

From Community Work to Fund Creation

Jones shared that after growing up in Indianapolis and working in New York and Los Angeles at the intersection of music, technology, and entertainment, she returned to Indy in 2016.

Her initial focus was on providing training to Black community members for quality employment, both within and outside the tech sector. This work evolved into a startup incubator specifically for Black founders, followed by a pitch competition.

Recognizing the Need for Capital Access

It became apparent that the founders participating in the incubator and pitch competition required access to capital to facilitate the growth of their businesses. This realization spurred the development of the concept for an early-stage fund.

Jones noted Indiana’s strength in B2B SaaS and the firm’s intention to leverage this existing momentum.

Addressing Diversity in the Tech Landscape

“Indiana is well-known for its B2B SaaS companies, and has experienced successful exits with companies like ExactTarget, Salesforce, Angie’s List, Interactive Intelligence, and Genesys,” Jones stated. “However, conversations surrounding diversity and increased representation of people of color, women, and LGBTQ+ founders are lacking.”

Investment Strategy and Pipeline

The fund intends to make seed and pre-seed investments, potentially participating in occasional A rounds. Investment amounts will range from $250,000 to $500,000 per company.

Sixty8 benefits from a strong pipeline of potential investments generated through its incubator and pitch competitions, as well as established connections within the local startup ecosystem.

Investing in Non-Traditional Targets

The firm’s strategy extends beyond addressing diversity in investment decisions; it also aims to invest in companies that may not typically be considered conventional venture-backed opportunities.

Initial Investment: Qualifi

The fund’s inaugural investment is in Qualifi, a B2B SaaS company utilizing artificial intelligence to streamline the qualification process for companies managing high-volume hiring. Qualifi reduces the qualification timeframe from seven to ten days to three days or less.

The Significance of the Firm’s Name

The firm’s name, Sixty8, is a reference to 1968, a period marked by widespread protests and demands for greater equality for people of color, women, and the LGBTQ+ community.

Jones explained that while the firm initially launched under a different name in 2019, Sixty8 felt more fitting for an organization dedicated to empowering diverse groups.

Echoes of the Past

“It feels as though we are still striving and struggling in the same ways we were in 1968, during the Civil Rights movement, when we lost prominent leaders and the passion for change was so intense,” Jones reflected. “We were fighting for the rights of women, Latinos, and Black individuals, and it seems that in 2021, we remain in a similar position.”