BBG Ventures has raised a new $60 million fund. The firm was founded in 2014 to support female founders. Now, it is expanding its focus to include diverse founders in terms of race, age, and income.
In the past, BBG Ventures committed to backing women-led businesses. The firm believed that investing in underserved markets would lead to big returns. Over the past decade, BBG Ventures has grown a lot.
It now manages $130 million in assets and over 100 investments. The firm’s first fund only invested in companies with at least one female founder. About 70% of those companies had a founder of color.
This was notable in the venture capital industry. In 2023, only 3% of funding went to women-only teams. The new fund is backed by big investors.
These include State of Michigan Retirement Services, Illumen Capital, and the George Kaiser Family Foundation. There are also new partners like Fairview, Pivotal Ventures, California Endowment, and Mizuho.
Bbg ventures’ expanded investment focus
BBG Ventures has already used 14.7% of the new fund for seven investments. These include a recruiting platform for hourly workers and an infant formula brand. The firm’s change in strategy matches changes in culture and demographics.
The term “female founder” has sometimes been met with challenges. But BBG Ventures sees this change as addressing a wider range of unique founder perspectives. Nisha Dua, one of the firm’s leaders, says it’s important to understand consumer identity in a broad way.
This means looking at gender, race, age, political identity, and income. The firm’s research shows that priorities like building wealth and getting good healthcare are the same across different groups. But identity plays a role in preferences and needs.
For example, Black Americans may look for healthcare that fits their culture. “This is really about a very strong market opportunity and looking for founders who we think are uniquely positioned to solve that,” Dua states. Susan Lyne, another leader at the firm, agrees.
She says BBG Ventures will keep investing a lot in female founders. But it will also include a broader, more inclusive investment strategy.
