Kapor Capital Launches New $125 Million Fund

Kapor Capital, a venture capital firm specializing in investments with social impact and supporting founders of color, is currently raising a $125 million fund – designated as Kapor Capital, Fund III. This information was shared by a source with knowledge of the matter to TechCrunch.

First Time Accepting External Investment

A significant aspect of this new fund is that it marks the first instance of Kapor Capital soliciting capital from investors outside of its founding team. Previously, all funding originated directly from Mitch Kapor and Freada Kapor Klein, the firm’s founders.

Leadership of Fund III

The management of this fund will be overseen by Kapor Capital partners Brian Dixon and Ulili Onovakpuri. They will both serve as co-managing partners.

Ulili Onovakpuri’s Investment Focus

Onovakpuri received a promotion to partner in 2018. She previously expressed a keen interest in technologies that broaden access to healthcare. This includes solutions for improving reimbursements for low-income individuals and providing subsidized healthcare options.

Furthermore, Onovakpuri highlighted the importance of fostering inclusive workplace cultures and indicated her intention to invest in startups dedicated to this goal.

Prioritizing Retention and Satisfaction

“Our observations have shown a need for greater efforts to retain and ensure the satisfaction of individuals from diverse backgrounds,” Onovakpuri stated. “This is where my investment strategy is focused.”

Early Investments and Their Impact

Her initial investments included mSurvey, a platform utilizing text messaging to identify global disparities, and tEQuitable, a company focused on promoting inclusivity within organizations.

Brian Dixon’s Commitment to Diversity

Dixon achieved a milestone in 2015 by becoming one of the first Black investors to attain the position of partner at a venture capital firm. He articulated a goal to increase the representation of women and underrepresented people of color as founders within Kapor Capital’s investment portfolio to exceed 50%.

“My aim as partner is to continue pursuing this objective,” Dixon explained. “We remain dedicated to identifying exceptional companies with both impactful missions and the potential for venture capital-level returns. This dual focus is what distinguishes Kapor Capital.”

Progress in Portfolio Diversity

Currently, 59% of the companies within Kapor Capital’s portfolio are led by founders who identify as women and/or members of underrepresented racial or ethnic groups. Kapor Capital has played a crucial role in advancing diversity and inclusion throughout the technology sector.

In 2016, the firm implemented a Founders’ Commitment, requiring all new portfolio companies to prioritize investments in diversity and inclusion initiatives.

Notable Investments

Kapor Capital’s investment portfolio includes companies such as Blocpower, Bitwise, Promise, and Aclima.

No Comment

Kapor Capital has chosen not to provide a statement regarding this report.