BBG Ventures’ $60 million fund expands past feminine founders

A decade later, the world has modified and BBG Ventures is adjusting its technique. The agency, based by Nisha Dua and Susan Lyne, raised a second, $60 million fund, Fortune is the primary to report. With this fund, it’s increasing its mandate from investing in companies based by ladies to investing in startups launched by founders who’re feminine or various in another method throughout race, age, and revenue.

Throughout BBG Ventures’ portfolio, all of its Fund I firms had at the least one feminine founder; about 70% had a founding father of shade—an outlier in a enterprise capital business wherein awarded 3% of funding in 2023 to women-only groups. BBG Ventures now has $130 million in belongings beneath administration with greater than 100 investments. Its second fund is anchored by State of Michigan Retirement Providers, Illumen Capital, and the George Kaiser Household Basis, alongside new LPs Fairview, Pivotal Ventures, California Endowment, and Mizuho. Its second fund has made seven investments up to now, together with in a recruiting platform for hourly employees and an toddler components model, with 14.7% of its $60 million deployed.

But within the decade since BBG Ventures launched, the “female founder” has generally had a tough go of it. There was the rise of the “girlboss,” which was adopted by a quick fall, and a once-aspirational time period became a jab. Whereas ladies founders haven’t stopped constructing firms, some have complained of what they see as a goal on their backs by the press. “The cultural conversation had nothing to do with this decision,” says Dua. “If anything we believe the opportunity for founders who look different is bigger than ever. It’s more of a reflection of the world evolving. … Gender is not the only difference. Race is not the only difference.”

The agency carried out analysis on what it calls the “polycultural future of America” that examines “extraordinary demographic and social shifts across race, age and income that are creating a new status quo.” A number of traits, together with a widening wealth hole, an growing old inhabitants, and the emergence of Gen Z as the primary “majority-minority” technology influenced the agency’s strategic shift. So did the concept that customers expertise their identities in an intersecting method—a mixture of gender, race, age, political id, revenue, and extra components. Throughout demographics, priorities like constructing wealth and securing high-quality well being care are constant, their analysis discovered; however id comes into play when Black People, for instance, search “culturally competent health care,” Dua says. “That’s why we think founders who look different, who can put themselves in the shoes of their target audience, really could have this competitive advantage in today’s market,” Dua says.

BBG Ventures sees its pivot not as a transfer away from feminine founders, however as an indication of the place the U.S. is headed. “This is really about a very strong market opportunity and looking for founders who we think are uniquely positioned to solve that,” Dua says. “We are still going to be investing in women in a big way,” Lyne provides.