The National Association for the Advancement of Colored People (NAACP, the oldest and largest civil rights organization in the United States, has announced the launch of NAACP Capital, a $200 million fund of funds aimed at investing in diverse fund managers and startups that address systemic inequities. This initiative is designed to promote economic empowerment and social change by providing essential capital and support to underrepresented entrepreneurs.
NAACP Capital represents a significant step toward advancing racial justice and economic equality. The fund was conceptualized in collaboration with Kapor Capital and the Kapor Center, reflecting the NAACP’s ongoing commitment to fostering diversity and innovation within the investment landscape. By targeting diverse fund managers and startups, NAACP Capital aims to leverage the power of innovation and technology to tackle critical societal challenges.
Derrick Johnson, President and CEO of the NAACP, emphasized the importance of inclusivity in driving innovation. “As an ever-evolving legacy organization, the NAACP knows that innovation is born out of inclusivity,” he stated. “Impact investing has the power to drive historic financial returns and uplift overlooked communities.”
Jay Lundy, the Managing Director of NAACP Capital, brings a wealth of experience in venture capital and impact investing to the organization. He is passionate about using technology to create a more equitable future and is excited to lead this transformative initiative. “Through this fund, we have an opportunity to invest in and support the next generation of managers and founders who will work to integrate technology and innovation into our communities,” Lundy explained. “Our investment strategy will focus on the intersection of generational impact and tech innovation, aiming to drive both meaningful societal change and strong returns on investment.”
NAACP Capital will operate as a standard fund of funds, employing a co-investing strategy to provide capital and resources to diverse fund managers and startups. This structure allows the fund to maximize its impact while maintaining a focus on generating financial returns.
The fund will prioritize investments in sectors such as fintech, healthtech, edtech, and climate tech, where innovation can have a profound impact on underserved communities. By focusing on these areas, NAACP Capital aims to support entrepreneurs who are working to create solutions that address systemic barriers faced by marginalized groups.
In addition to financial investment, the fund will provide support in the form of mentorship and networking opportunities for emerging fund managers and startup founders. This holistic approach aims to cultivate a supportive ecosystem that empowers diverse entrepreneurs to thrive.
NAACP Capital’s launch comes at a time when discussions around diversity, equity, and inclusion are increasingly at the forefront of both the business and social landscapes. By investing in underrepresented talent and innovative solutions, the fund seeks to foster a more inclusive economy where everyone has the opportunity to succeed.
The NAACP’s initiative is also part of a broader movement within the investment community to prioritize diversity and impact investing. Many organizations are recognizing the importance of supporting minority-led businesses, not only for ethical reasons but also for the potential for significant financial returns.
As NAACP Capital embarks on this journey, it hopes to set a precedent for how investment can be used as a tool for social change. By aligning financial goals with a commitment to equity and inclusion, the fund aims to pave the way for a future where diverse entrepreneurs can drive innovation and create lasting impact in their communities.
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