The NAACP has launched a “fund of funds” to scale impact within communities of color.
According to a news release, NAACP Capital was formed with the support of Kapor Capital, the Kapor Center, and nine venture fund managers. It seeks to raise $200 million to fulfill its goal of investing in fund managers connected to sectors such as education, healthcare, and finance, with a focus on supporting underserved communities.
Beyond capital, the initiative aims to close racial equity gaps and increase diversity within the tech industry. As part of this mission, resources and support will be provided to fund managers and founders.
“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,” NAACP President and CEO Derrick Johnson said in a statement. “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.”
Jay Lundy, managing director of NAACP Capital, commented:
“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. 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.”
