NAACP Launches Innovative $200 Million Fund of Funds to Transform the Venture Capital Landscape
FOR IMMEDIATE RELEASE
October 25, 2024
Contact: Alicia Mercedes, amercedes@naacpnet.org
WASHINGTON – Today, during a dealmaking summit for investors, venture capitalists, and entrepreneurs in New York City, the NAACP, the nation's largest civil rights organization, announced the launch of NAACP Capital, a fund of funds that will invest in fund managers and startups that are focused on closing gaps facing communities of color. The fund, which seeks to raise $200 million, was conceptualized in partnership with Kapor Capital and Kapor Center, along with a team of nine venture fund managers.
NAACP President & CEO, Derrick Johnson released the following statement in celebration of the Fund's launch:
"As an ever-evolving legacy organization, the NAACP knows that innovation is borne out of inclusivity. Impact investing has the power to drive historic financial returns and uplift overlooked communities. Right now, deeply entrenched systemic barriers are curtailing the innovative progress necessary to breed healthy competition in a global economy. We're seeking to change that. Investment is the backbone of impact, and impact investing will shape socioeconomics for generations to come. It's time to invest in fund managers who share a forward-looking vision that invests in innovation and technology, ensuring the economy works for everybody, not just a select few."
For over 115 years, the NAACP has led the fight for equal rights and opportunities. As part of the #KeepAdvancing campaign – a modernized approach to civic engagement – NAACP Capital is a natural extension of the Association's deep heritage in the fight for social justice and a more inclusive economy. Many of the important issues that the NAACP has long fought for, from education to healthcare to financial access, are growing markets for startup innovation. By investing in fund managers focusing on these markets and startups directly, NAACP Capital will stake the NAACP into the technology and venture capital ecosystem.
To lead NAACP's bold new venture, the Association has hired Jay Lundy as Managing Director of NAACP Capital. Jay Lundy is an experienced venture capital investor and management consultant who started his career in education and impact investing.
"The NAACP and community engagement have long played a role in my family, which makes me even more excited to lead this pivotal effort and launch this historic fund," said Jay Lundy, managing director of NAACP Capital. "Through this fund, we have an opportunity to invest and capitalize the next generation of managers and founders who will work to bring technology and innovation into our communities. Our investment strategy will target the intersection of generational impact and tech innovation and we believe that this holistic approach will allow us to drive both impact at scale and generate top returns on investment."
NAACP Capital will operate as a standard fund of funds and co-investing strategy that will seek to make the venture ecosystem more equitable. In addition to capital, NAACP Capital will provide additional resources and support to the managers and founders it invests in to close racial equity gaps and increase the representation of people of color across the tech ecosystem.
For more information about the NAACP's work towards building an Inclusive Economy, visit our website.
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About NAACP
The NAACP advocates, agitates, and litigates for the civil rights due to Black America. Our legacy is built on the foundation of grassroots activism by the biggest civil rights pioneers of the 20th century and is sustained by 21st century activists. From classrooms and courtrooms to city halls and Congress, our network of members across the country works to secure the social and political power that will end race-based discrimination. That work is rooted in racial equity, civic engagement, and supportive policies and institutions for all marginalized people. We are committed to a world without racism where Black people enjoy equitable opportunities in thriving communities.
NOTE: The Legal Defense Fund – also referred to as the NAACP-LDF - was founded in 1940 as a part of the NAACP, but now operates as a completely separate entity.