The NAACP announced today NAACP Capital, a $200 million fund of funds to back fund managers focused on issues that impact people of color.
The fund was conceived in partnership with Kapor Capital and Kapor Center, along with nine other venture fund managers. Last year, Crunchbase found that Black founders raised less than 1% of all venture capital funds and that the group has raised 0.3% in the first half of this year.
A fund of funds is when an investor invests in multiple venture funds, rather than making individual investments in funds, or even in startups. It’s a popular way for an influential investor to put their money to the broadest possible use. Kapor is a VC firm that has always been focused on racial justice investing. But other big names have used a similar approach. Melinda Gates’ Pivotal Ventures, for instance, invests in women-led funds, as well as directly in startups.