Majority Black-led venture capital firm raises $203 million, positioning it for strong future growth
Raising nearly double its first seed fund, the second fund for Mac Venture Capital raised $203 million which will go a long way in increasing its capacity for growth.
The MaC VC Fund II has just closed after $110 million was reached in Fund I in March 2021. The event is a precursor to the solidify which calls Los Angeles and Silicon Valley its headquarters on multiple fronts.
Managing Managing Partner Adrian Fenty says it’s hugely important for a majority black-led venture capital firm to raise more than $200 million for a fund because it helps achieve diversity and attract more people. people in the venture capital world.
With the new funding, Fenty’s company will have more than $412 million in assets under management, he said. BLACK CORPORATE by email. The company says the funding will make it one of the largest black-majority venture capital funds in the country..
“This puts us in a great position to continue making impactful investments, helping our businesses grow, and for MaC VC to be a premier seed-stage venture capital fund for years to come,” Fenty said.
Bringing in nearly $100 million from new investors for Fund II is allowing the company to take larger ownership percentages in the companies, he adds. “Having this $203 million fund from existing and new LPs (limited partnerships) is affirmation that the type of transactions we invest in and the work we have done is what professional investors want to invest their money,” says Festy.
MaC Venture Capital was created in 2019 after the merger between Cross Culture Ventures and M Ventures.
Since 2019, the company has invested in 50 top-performing companies, including Pipe, On-board delta, Feed, Zigazoo, Epsilon3and Spartan Radar. Before forming MaC, its four founders had invested in more than 135 companies.
“We support the next generation of businesses, like Spora Health and Swallowedthat fill gaps in access and opportunity, and our investors trust our cultural investment framework that guides our investment strategies,” says Fenty.
Fenty says the company invests in tech startups by taking advantage of shifts in cultural trends and behaviors. He added that he seeks to work with ambitious founders who want to build billion-dollar companies. The new funding will be invested in a variety of sectors, including healthtech, fintech, web3 and aerospace.
Managing General Partner Marlon Nichols shared that most of MaC’s investments are in the United States, including California, New York, Washington and Texas. The company has a number of international investments, particularly in Latin America and Africa. Like Fund I, Fenty says MaC plans to invest in 45-50 companies with the new fund.
However, with Fund II, he says the goal was to raise $200 million so the company could write bigger checks, have bigger ownership percentages and take bigger stakes. This time, the company expects the average check size to be between $2 million and $3 million, increasing from $1 million to $1.5 million in Fund I.
And MaC has made diversity a key part of its investment strategy. It reports that 36% of portfolio companies are led by female founders and 69% have BIPOC founders. The company revealed that more than $99 million has been invested in its portfolio since the launch of the two funds. Investment is necessary. Reports show that Crunchbase data collected for Reuters revealed that startups with a black or Hispanic founder secured just 3.5% of the banner’s US$311 billion funding in 2021, compared to an average of 2 .5% the previous five years.
To boot, MaC reports that more than 50% of its investment team is black and 25% women.
General Partner Michael Palank said, “MaC Venture Capital understands that establishing diversity in leadership is not only the right thing to do, it is also the most strategic investment strategy.
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