Key Takeaways
- • The Florida A&M University Foundation invested $150,000 in The Fearless Fund, an Atlanta-based $25 million venture capital firm co-founded by two FAMU graduates, according to the Tallahassee Democrat.
- • The investment is the FAMU Foundation's first in a Black-led venture capital firm, a milestone the foundation describes as historic for its portfolio, which it values at $142 million with a $106 million endowment.
- • The Fearless Fund, launched in 2019, targets pre-seed, seed and Series A financing for women of color-led businesses, with a goal of investing in more than 40 startups in technology, beauty, fashion and consumer-packaged goods.
- • The FAMU investment follows corporate backing from PayPal, Bank of America, Fifth Third Bank and Costco, the last of which committed $1 million last month.
- • Funding for women of color-led startups remains scarce; a February 2020 Forbes article cited in the report noted such businesses receive less than 1% of venture capital each year.
Summary
The Florida A&M University Foundation announced on a Tuesday that it had invested $150,000 in The Fearless Fund, an Atlanta-based venture capital firm with $25 million under management, according to the Tallahassee Democrat, which learned the amount. The firm was co-founded by two FAMU graduates. The foundation described the commitment as its first investment in a Black-led venture capital firm, and the Democrat noted that it places FAMU alongside corporate investors including PayPal, Bank of America, Fifth Third Bank and Costco.
The Fearless Fund was launched in 2019 by co-founders Ayana Parsons, COO, and Arian Simone, CEO. Parsons graduated summa cum laude from FAMU's School of Business and Industry in 2005 and is a consultant with Korn Ferry. Simone attended FAMU from 1999 to 2003 and earned a bachelor's degree and MBA from the school. Keisha Knight Pulliam, a former child actor known for playing Rudy Huxtable on "The Cosby Show," is a general partner and chief development officer. The fund describes itself as the first venture capital fund built by women of color to assist women of color.
FAMU Foundation executive director Shawnta Friday-Stroud, who is also vice president for University Advancement and dean of the School of Business and Industry, said the foundation's investment value stands at $142 million and its endowment at $106 million. She called the investment historic and said the foundation expects it "to pay dividends for generations to come." Simone said the investment furthers the fund's mission to bridge the funding gap for female founders of color.
The fund targets over 40 startups in technology, beauty, fashion and consumer-packaged goods. Its investment thesis addresses a persistent funding gap; the report cites a February 2020 Forbes article stating that businesses with women of color CEOs receive less than 1% of all venture capital funding each year. Last fall, the fund also received an investment from Atlanta Emerging Markets, Inc. (AEMI), in partnership with Invest Atlanta, a certified community development entity focused on underserved communities.
The Fearless Fund was launched in 2019 by co-founders Ayana Parsons, COO, and Arian Simone, CEO. Parsons graduated summa cum laude from FAMU's School of Business and Industry in 2005 and is a consultant with Korn Ferry. Simone attended FAMU from 1999 to 2003 and earned a bachelor's degree and MBA from the school. Keisha Knight Pulliam, a former child actor known for playing Rudy Huxtable on "The Cosby Show," is a general partner and chief development officer. The fund describes itself as the first venture capital fund built by women of color to assist women of color.
FAMU Foundation executive director Shawnta Friday-Stroud, who is also vice president for University Advancement and dean of the School of Business and Industry, said the foundation's investment value stands at $142 million and its endowment at $106 million. She called the investment historic and said the foundation expects it "to pay dividends for generations to come." Simone said the investment furthers the fund's mission to bridge the funding gap for female founders of color.
The fund targets over 40 startups in technology, beauty, fashion and consumer-packaged goods. Its investment thesis addresses a persistent funding gap; the report cites a February 2020 Forbes article stating that businesses with women of color CEOs receive less than 1% of all venture capital funding each year. Last fall, the fund also received an investment from Atlanta Emerging Markets, Inc. (AEMI), in partnership with Invest Atlanta, a certified community development entity focused on underserved communities.
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