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Investing in black women founders because “it’s about damn time”

Investing in black women founders because “it’s about damn time”
[Photo: Flickr user WOCinTech Chat]

As the founder of Backstage Capital, a VC fund that backs women, people of color, and LGBT founders, Arlan Hamilton has supported more than 80 companies led by underrepresented founders. This weekend, Hamilton announced that Backstage’s latest fund will invest $36 million in black female founders.

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Though Hamilton is still raising money for the fund, she plans to invest in two to three companies by the close of 2018. Each company will receive $1 million in funding, but Hamilton tells me half of the fund will be set aside to help support its founders in subsequent funding rounds. As such, the fund will back a total of 15-20 companies.

Black women get little funding from VC firms, despite reportedly being the fastest growing group of entrepreneurs—which is why Hamilton has aptly dubbed this the “it’s about damn time” fund.

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