In 100 days, 191 Black, Latinx, LGBTQ+, Native American, and women members of the Cap Table Coalition invested $16 million into high-growth tech companies

The Coalition's Investment Committee includes VCs from 2045 Ventures, Act One Ventures, Base10 Partners, Lightspeed Venture Partners, NewView Capital, VamosVentures, and more

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Cap Table Coalition

Sep 30, 2021, 08:50 ET

SAN FRANCISCO, Sept. 30, 2021 /PRNewswire/ -- The Cap Table Coalition is a partnership between high-growth startups and emerging investors and fund managers to diversify the venture capital (VC) ecosystem and close the racial wealth gap. In its first 100 days, 191 members of the Coalition from traditionally marginalized communities invested $16 million into 13 companies that pledged 10% or more of all funds to underrepresented investors, including Synctera, Orum, Form Energy, and Forage. In total, 36 companies have taken the Cap Table Coalition's 10% pledge, and 330 investors have joined the community.

The Cap Table Coalition is about more than increasing representation on cap tables. It's about helping historically marginalized groups get access to oversubscribed investment opportunities—with the same term sheets as large institutional firms like Accel, Bain Capital Ventures, TPG, Khosla Ventures, Coatue, Tiger Global, etc.—and get attribution for their work to help them start careers and their own funds. From there, more money and time can be invested back into their communities to inspire and create new startups, founders, investors, and board members.

"We're motivated by the Cap Table Coalition to create our own VC firm," said Kemba Hall and Garry Johnson III of First Founders Inc. "To do so, we recognize that we need a track record of evaluating and managing deals as investors. To build that muscle, we're creating our own SPVs to invest in deals coming through the Coalition community."

Today the VC industry is overwhelmingly white and male. Therefore, most returns and generational wealth produced from startups are concentrated in a homogenous group, exacerbating economic disparity. Anyone can invest in a publicly traded account regardless of class or connections. However, unless you're a top partner at a VC firm, you're cut out of the opportunity and massive upside that comes from investing in early-stage, high-growth private companies.

VC firms have tried to address their lack of diversity by earmarking funds for founders of color (i.e., a16z's TxO fund's $2.2M accelerator program and Softbanks' $100M fund). This is a step in the right direction, but only one side of the story. Firms and startups make deals. The Cap Table Coalition helps founders take direct control over their cap tables and provides an immediate connection to underserved investors and fund managers.

To help founders and investors manage allocations, the Cap Table Coalition is proud to introduce its Investment Committee, including emerging fund managers and VCs at larger firms who seek to help rebuild the ecosystem itself:

"The Cap Table Coalition is a magnet that draws in forward-thinking founders and knowledgeable investors who understand that representation, inclusion, and equity are linked to outsized returns. I highly recommend that everyone who meets the criteria sign up to join," said Carmen Palafox, Founding Partner at 2045 ventures.

About the Cap Table Coalition

The Cap Table Coalition aims to diversify the venture capital ecosystem and close the racial wealth gap by creating investment opportunities for Black, Latinx, LGBTQ+, Native American, women, and other traditionally marginalized investors. The Cap Table Coalition was inspired by the Act One Diversity Rider for VCs and Finix's unique fundraising efforts to diversify startup cap tables. The Coalition has made it as easy as possible for all companies and firms to join the movement. Sign up at https://captablecoalition.com/.

SOURCE Cap Table Coalition